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.
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:
Both offer a mix of protection + savings.
Education costs are increasing every year. A good child plan helps parents prepare financially for:
Child insurance ensures that money is available at the right time when your child needs it most.
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
✔ 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.
Child plans are ideal for:
If you want to secure your child’s future goals from today, a child plan is a must.
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
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.
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.
You get tax benefits under:
Section 80C for premiums paid
Section 10(10D) on maturity payouts
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.