Topic 1: An Introduction to Child Plans

What are Child Plans?
Child Plans are insurance plans that help parents save for their child’s future expenses. A Child Plan also offers Life Insurance cover on the parent’s life and ensures the financial security of the child in case of the parent’s demise.

How does a Child Plan work?
In a Child Plan, the parent is the insured person and the child is the beneficiary.

The idea behind a Child Plan
The idea behind a Child Plan is to protect the child’s future in case something were to happen to the parent. A Child Plan also helps the parents save for their child’s higher education and future expenses. Begin early and enjoy the benefits of compounding.

Is it an insurance plan or an investment plan?  
A Child Plan comes with a life cover and a Sum Assured amount is payable at maturity.

ULIP Child Plans
If you are looking for higher returns in order to take care of the rapidly mounting costs of higher education, you should think of opting for ULIP Child Plans.

In a ULIP Child Plan, the parent gets a life cover and the premiums are invested in funds that the parent chooses.

Plans that have no upfront premium distribution charges are also popular. Here, the total premium is invested in chosen funds and the scope for long-term returns is maximum.

More Flexibility
With child plans, you get added flexibility because you can withdraw funds through partial withdrawals. This allows the parent to access saved funds to cater to the child’s educational needs.

Death Benefit
In case of the parent’s demise before the maturity of the policy, a Child Plan offers a guaranteed lump sum amount that is paid to the child, with a fixed annual income for the remaining duration of the policy.

Additional Reading: Child Insurance Plans

Flexible Tenure and Tax Benefits
The parent can choose the tenure of the Child Plans and enjoy tax benefit up to a specific amount.

Waiver of premium option  
You can opt for a waiver of premium add-on which means that if the parent is no longer around, any future premium would be paid by the insurance company. Your Child Plan would be unaffected and a lump sum will be paid to your child on the maturity of the policy. Life is uncertain. Don’t wait any longer. Secure your child’s future today.
Please do not reply back to this mail. This is sent from an unattended mail box. Please mark all your queries / responses to
Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information., its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.