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  • subhadeep.insurance@gmail.com
  • +91 92650 73625

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Child Insurance Plan

A Child Insurance Plan is a specially designed financial product that helps parents secure their child’s future by combining life insurance protection with long-term savings or investment. These plans ensure that your child’s dreams — such as higher education, career goals, and marriage — are fulfilled even if life takes an unexpected turn. Child Plans offer guaranteed financial support, disciplined savings, and life cover so your child never faces financial difficulty at any stage of life.


What is a Child Insurance Plan?

A Child Insurance Plan is a long-term policy that provides:

✔ Life cover for the parent (policyholder)

✔ A maturity/savings benefit for the child

✔ Premium Waiver (insurance company pays future premiums if parent dies)

This ensures that the child’s future goals remain secured, even in the absence of the parent.

Child plans are available in two types:

  • Traditional Child Plans (Guaranteed Returns)
  • ULIP Child Plans (Investment-Linked Returns)

Both offer a mix of protection + savings.


Why Child Insurance Plans Are Important

Education costs are increasing every year. A good child plan helps parents prepare financially for:

  • School/college expenses
  • Higher education in India or abroad
  • Professional courses
  • Marriage expenses
  • Emergency financial support

Child insurance ensures that money is available at the right time when your child needs it most.


Key Features of Child Insurance Plans

1. Life Coverage for the Parent

If the parent (policyholder) passes away during the policy term, the sum assured is immediately paid to the family.

2. Premium Waiver Benefit (Most Important Feature)

If the parent dies, all future premiums are waived.
The insurance company continues to invest on behalf of the child.
The policy continues till maturity, ensuring funds are received when required.

3. Maturity Benefits for the Child

At the end of the policy term, the child receives a lump-sum amount for future education or career needs.

4. Goal-Based Savings

You can plan for specific milestones like:

  • Graduation at age 18

  • Professional course at age 21

  • Marriage after 25

5. Flexible Payout Options

Choose how you want the money:

  • Lump-sum

  • Annual payouts

  • Monthly income

  • Step-up payouts for different stages

6. Investment Options (ULIP Child Plans)

ULIP child plans allow investment in:

  • Equity funds

  • Debt funds

  • Balanced funds

You can switch funds as per market movements.

7. Partial Withdrawal Facility

Withdraw money anytime for:

  • Tuition fees

  • Coaching classes

  • Medical emergencies

  • School expenses


Benefits of Child Insurance Plans

✔ Ensures Child’s Education Without Disturbance

Even if the earning parent is not present, the child’s education and upbringing do not stop.

✔ Protects Against Rising Education Costs

Inflation in education is 8–10% yearly.
Child plans help you build a large corpus to meet future costs.

✔ Financial Security in All Situations

Whether it’s admission to university or health emergencies — child plans provide assured funds.

✔ Dual Benefits of Life Cover + Savings

You get both protection and wealth creation in a single plan.

✔ Regular Payouts Help in Different Stages of Child’s Life

You can receive payouts during important phases like schooling, coaching, graduation, etc.


Who Should Buy a Child Insurance Plan?

Child plans are ideal for:

  • New parents
  • Parents with young children
  • Parents planning higher education
  • Parents wanting guaranteed funds
  • Families wanting long-term financial discipline

If you want to secure your child’s future goals from today, a child plan is a must.


Types of Child Insurance Plans

1. Traditional Child Plan (Endowment Style)

  • Guaranteed maturity benefit

  • Low risk

  • Suitable for conservative savings

2. ULIP Child Plan

  • Market-linked returns

  • High growth potential

  • Tax-free maturity

  • Good for long-term goals


How Much Should You Invest?

A simple formula:
Future Education Cost – (Current Savings + Expected Returns) = Required Investment

Example:
If future education cost = ₹40 lakh (in 15 years)
Monthly investment required ≈ ₹7,000–₹10,000 depending on the plan and return rate.


Why Start Early?

Starting early means:

  • Lower premiums

  • Bigger investment horizon

  • Higher compounding returns

  • Stress-free planning

The earlier you start, the easier it becomes to achieve your child’s future milestones.


Tax Benefits

You get tax benefits under:

  • Section 80C for premiums paid

  • Section 10(10D) on maturity payouts


Conclusion

A Child Insurance Plan is not just a policy – it is a promise to secure your child’s dreams, education, and future. With guaranteed protection, disciplined savings, and long-term growth, child plans ensure that your child receives the best opportunities in life, no matter what happens. By starting early, you can build a strong financial foundation that supports every milestone of your child’s journey.

Office Address

  • Malda
  • subhadeep.insurance@gmail.com
  • +91 92650 73625