The increasing inflation in India has truly made the upbringing of a kid troublesome and difficult for parents. To deal with this situation there are two options available – either start saving for your child’s future on your own or buy the best Child Insurance Plan from any leading insurance player. The child insurance policies are introduced to offer financial aid to your child, whenever required during any critical situations, like marriage, higher education or illness. These plans will take proper care of your kid’s future financial needs.
Types of Child Insurance Plans
There are two different types of child plans available today:
- Traditional Insurance Plans – In this type of traditional plans the payout is guaranteed. The investments are usually made in low yielding and safe products, thereby the returns are lower, but stable and guaranteed.
- ULIP Insurance Plans – Here the investments are more into equity markets, thereby the returns are higher. However, risk factor is involved as it is a market risk plan.
Best Child Insurance Plans in India
- Aviva Young Scholar Advantage – This is a ULIP Plan perfect for parents that are life-insured. This plan doesn’t offer protection to child, but provide security to the future of your child after the death of his/her parent. The child is guaranteed to get the Sum Assured which will help them to meet their requirements after the death of their parent. After the dismissal of parents, the future premiums will be paid off by the company and at the time of maturity the child will also get the Fund Value.
- Bharti AXA Life Future Champs – This is a conventional money back child plan and perfect for parents with life-insured. If the parent dismisses within the tenure of the policy, the child automatically becomes the nominee of the policy and they will get the sum assured amount to meet their pressing requirements of family. In this plan the future premiums will be waived off after parent dismissal and the survival benefits will be paid off to the child on maturity of the policy.
- Birla Sun Life Insurance (BSLI) Bachat Child Plan – This is the best, endowment, non-participating child plan by BSLI. No bonus is declared by the company in this child plan, but the returns are stable and guaranteed. The parents are life insured in the plan, thereby no protection is offered to the child. During the policy tenure, if the parent dismisses the child will automatically get the sum assured as immediate benefit. The future premiums will be paid off by the company after parent dismissal during the tenure of the policy and the maturity benefits would be paid off to the child whenever it is due.
- Kotak Child Advantage Plan – This is a participating plan where the life of child is insured. The premium amount will be credited to Accumulation Account after deduction of charges. The returns are also credited to Accumulation Account. Since the life of child is insured, the policy will continue even after parent dismissal. The policy terminates after child’s death within tenure of the policy and the death benefits will be paid off. If child survives till the maturity then higher sum assured and accumulation amount will be paid.
- LIC Jeevan Anurag Plan – This LIC child insurance plan is basically designed to take care of your child’s education. This insurance plan offers assured benefits and death benefits. If the parent dies, the sum assured is paid off instantly to the nominee (the child). In the last three years of the policy, 20% of basic sum assured will be paid to the nominee at the beginning of every fiscal year, regardless of whether the parent is alive or death. 40% of sum assured and bonus will be paid at the time maturity.
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