Lifestyle

What is the best child plan in India I can get for my 4-year-old?

Introduction 

Children are one of the worthy assets that are born, and from the day they are conceived, parents start saving for their children so that they can have all the needed things and lead a life where they don’t have to compromise on their dreams, aspirations and lifestyle.

Planning out the best solution to safeguard your child’s future is challenging. It is why you should take time, do research, anticipate future shortcomings, and plan accordingly because a small mistake can cost your child’s financially assured future. 

Most people try to build a substantial financial cushion for their children but find that their funds are insufficient when the time comes. There are numerous investment and insurance plans for children tailored to cater to their needs and suitability to solve such parent-related dilemmas.

What is Child Insurance Plan 

A child insurance plan can be defined as a dual purpose plan that acts as both insurance and investment. With the help of this plan, parents can  protect and prepare for their children’s future while also accumulating an investing corpus to have enough to support the pathbreaking milestones of your child’s life. 

Even though it is a child insurance plan, here, parents are the life insured (as they pay the premium) and the child is the beneficiary.

If the life insured meets with death then, the insurance company shall pay the death benefit to the (beneficiary) child. 

As your child turns four, it is their time to begin school. Once schooling begins, there is no turning back from many education and lifestyle-related expenses. Starting from the uniform, fees to providing the most suitable life experience for your child become necessary for the parents. 

And it isn’t necessary that every parent would have money to fulfill all the required things and save for their future endeavors such as degree, higher studies, marriage, and many more significant milestones. 

It is where child insurance acts as a hero without a cape. 

With education inflation in India touching up to 12%, it has become difficult for many to enjoy the financial balance. Therefore, a child insurance plan is a double bonanza offer that combines investment and life insurance benefits into a single policy.

What are the Reasons for Having a Child Insurance Plan?

Makes you a responsible parent: Investing your hard-earned money in a child insurance plan will not only give financial stability for your child in times of disaster but will also help you teach your child a saving habit. Investing in child insurance acts as an aid in developing a disciplined savings practice. Parents act like a mirror to their children from whom they learn values and life lessons. Savings is one of the main things that a parent can teach their children.

Tax Advantages: Under Section 80C of the Indian Income Tax Act (1961), the life insured can claim tax benefits over 1.5lakhs over the premiums you paid for the child insurance plans. Moreover, the maturation value and withdrawals made after the lock-in period fall under tax-free. Also, child insurance policies are exempted from taxation on maturity payouts and capital gains under Section 10 of the Internal Revenue Code (10D).

Safety Net for Your Child’s Education: The rising cost of education is a big concern. Most children prefer taking up student loans to support their dream of pursuing higher education abroad or highly reputed educational institutions that will cost their parent’s pockets. Therefore, with a child insurance plan,  one’s stress will be reduced if a parent plans ahead of time and invests in insurance as it will mature by the time the child grows up. 

Covering Death Benefit or other mishaps: Change is the only constant humans face. Now, the change can be either positive or negative. If the life insured (parent) dies when the term is active, the child shall receive the death benefit, and all the future premiums will be waived off. Other than unfortunate death, if the life insured suffers from a serious handicap, a child insurance policy can help limit these risks by covering all future premiums, guaranteeing that a child’s future is not jeopardized.

Bear Marriage Cost & other milestones: A child insurance plan can also assist you in selecting and investing for your child’s significant life steps, such as marriage, education, and traveling overseas for higher education. The life insured can withdraw the money when required.

Increase the Growth of Your Investment: If you opt for long-term investment, you can reap the rewards of an abundant bargain because the longer you stay and invest, the bigger the return on that investment.

Best Child Insurance Plans in India in 2022 

Child insurance ensures that every child has a secure financial future even after their parent’s death. Parents can rest confident that their children’s needs will be met adequately with efficient child insurance. 

Therefore, in this blog section, we will take you through some of the best child insurances available in the market, and they are as follows:

Aditya Birla Sun Life Insurance Vision Star Plan 

To begin with, this is an inclusive child insurance plan by the ABSLI that offers assured payouts for paying your child’s education and future goals even if the parents meet with an untimely death. 

This child insurance plan by the ABSLI has two distinct options, and they are,

Option A comprises four biannual payments of 20%| 20% | 30%| 30%.

Here, after paying all of the premiums for the beginning five years then, the policyholder will get an assured payout every two years.

Option B: Now, this option comes with five annual payments of 15% | 15%| 20% | 20%. Unlike the option mentioned earlier, after paying all of the premiums for the first five years, the life insured shall get an annual guaranteed payout.

Riders at pocket-friendly pricing:

  • ABSLI Accidental Death and Disability Rider 
  • ABSLI Critical Illness Rider 
  • ABSLI Surgical Care Rider 
  • ABSLI Hospital Care Rider 
  • ABSLI Waiver of Premium Rider 
  • ABSLI Accidental Death Benefit Rider Plus 

Assured Payout: After five years of the completion of the premium-paying phase, the life insured shall begin receiving assured payouts in the form of a pre-determined percentage based on the pre-selected sum assured.

Maturity Benefit is available if the life insured manages to outlive the policy. Here, the insurance company will pay the maturity benefit and terminal incentive (if any is remaining).

To know more about this child insurance by ABSLI, Click Here – ABSLI Vision Star Plan

Aditya Birla Sun Life Insurance Child Future Assured Plan 

Assured Benefit: In this perk by the ABSLI child plan, it lends assured support for your child’s major life milestones, such as education and marriage, or both. To take advantage of this benefit, you must choose one of three options presented in the plan.

  • The Educational Milestone Advantage
  • Benefits of Marriage Milestone
  • Benefits of Education and Marriage

Riders: This is the list of perks that come with an added cost

  1. ABSLI Accidental Death and Disability Rider 
  2. ABSLI Critical Illness Rider 
  3. ABSLI Surgical Care Rider 
  4. ABSLI Hospital Care Rider 
  5. ABSLI Waiver of Premium 
  6. ABSLI Accidental Death Benefit Rider Plus 

Loyalty Additions: If you are a responsible user and manage to pay all the premiums, a loyalty bonus of 20% is applied to their assured benefits at the completion of each scheduled payout.

Maturity Benefit: In this case, the maturity benefit equals the assured benefit payable to the life insured at the end of the plan.

Increased Insurance Coverage: Paving the way to more secure and more extensive coverage and the policyholder decides to pay the additional premium at the start of the term plan, they can also have the opportunity to choose increased insurance coverage amounting to 50%, 100%, or 200% of the sum assured.

To know more about this exclusive child insurance plan, Click Here – ABSLI Child Future Assured Plan

Conclusion

The better the plan, features, and benefits, the happier and more secure the child, and their security and satisfaction is every parent’s dream. Then why compromise on their happiness?

Chart out your needs, understand the plans, and choose the best insurance company to safeguard your child with the best in the insurance world. Let your absence not lead to a road of compromises for them.

To know more information about:  free sab result

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