As a new parent, finding good Child Insurance plans can be confusing. When you are looking for your first life insurance plan, the vast number of options in the market can make the whole process pretty intimidating. Add to that, many parents may not even think of buying child insurance till very late, as late as middle school. And that’s honestly a tad bit late though it is still a good idea to explore your options.
Why is a child plan important for you and your child? You could read all about it on How much should I invest in a Child Insurance Plan? What age to Buy?
So, how to find the best Child Insurance plans in India that suits you?
It’s not actually that difficult, trust me. Technical terms aside, buying Child Insurance is pretty easy, affordable and can really be done online. Here is how you can go about selecting the plan that suits you best by reading the next 4 sections.
How to find best insurance plans for child?
- Get the quotes online from any top 3 insurers in India
- Selects all the riders next that you feel are necessary
- Go ahead with one that fulfils all your rider requirements and at the same time fits in you budget.
How to select the best insurance service provider for Child Plan?
Check the claim settlement ration (CSR) of the insurance provider. A higher % is preferable as there is a better change of your claim and settlement being processed smoothly.
What to remember while buying a Child Insurance Plan?
Apart from the premium and sum assured, make sure that the tenure chosen is right. Say, When I buy the plan at the time of birth, a tenure of 20 years is right as my child will receive the amount at the time of university admission. However, if I am starting when my child is 5 years already then, a tenure of 15 years would work better.
The Don’ts to keep in mind before buying a Child Insurance
- Avoid investing almost all money with you into various loan and insurance premiums.
- Never make an investment decision based on unsolicited and unreliable information.
- Check the history and proven track record of the insurance provider in claim settlement, avoid making investment based on only on promise of lucrative returns
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Best Child Insurance Plans in India
- ICICI Prudential Smart Kid Solution Plan
- HDFC Life Young Star Udaan Plan
- LIC Jeevan Ankur Plan
- Birla Sun Life Insurance Vision Star Plan
- Reliance Nippon Life Child Plan
- Birla Sun Life Insurance Vision Star Plan
- Aviva Young Scholar Advantage Plan
- Bajaj Allianz Young Assure Plan
- SBI Life Smart Champ Insurance Plan
What are the features of a Child Insurance Plans in India?
I feel child Insurance plans go beyond just funding the child’s education or marriage. Here is how.
Incase of sad demise of the parent during the term of the policy, the sum assured, which about 10x, is still paid to the child once she turns 18.
This is especially relevant when you buy a plan later, say about middle school years. You can opt for this feature which allows you to withdraw part of the sum assured once child turns 18, hence helping with undergrad university expenses.
Child plans are usually designed for premium waiver, in unfortunate case of demise of the parent.
Child Insurance plans offer a variety of investment options from equity, to debt and hybrid.
Why buy Child Insurance?
That’s a very important question. If you see yourself nodding in agreement to the points listed below, then it’s a good idea to invest in a child insurance plan
- Build a kitty dedicated for child’s future, with minimal extra financial burden
- Be prepared for medical emergency
- Plan for the parent’s absence
Do you find buying insurance an important decision? Or do you have a handy tip to share when it comes to buying best insurance plans for child in India? I would love to hear your thoughts in the comments below.
PS: Author has worked in the insurance industry before taking a deep dive into the world of blogging.
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That’s quite an helpful list. It’s important to have a child specific insurance plan to ensure their future is fine with good health.