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Children Policy

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Child Insurance Policy: Secure Your Child’s Future

Enegineering Policy

What is a Child Insurance Policy?

A child insurance policy is a specially designed life insurance plan that provides financial protection for a child’s future. It ensures that a child’s major expenses, such as education, marriage, and financial independence, are secured, even in the unfortunate event of the parent’s demise. This policy offers both life coverage and investment benefits, helping parents accumulate a lump-sum amount by the end of the policy term.

How Does a Child Insurance Policy Work?

A child insurance policy is typically purchased by parents or legal guardians to safeguard their child's financial future. Here's how it works:

  • The parent selects the sum assured and policy tenure based on the child’s future financial needs.
  • The parent pays premiums throughout the term of the policy.
  • The policy matures when the child reaches a specified age, and a lump sum payout is provided.
  • In the event of the parent's untimely demise, some policies waive future premiums while keeping the policy active.
  • The maturity benefit can be used to cover higher education expenses, marriage, or settlement costs.

Benefits of a Child Insurance Policy

Financial Security for the Child’s Future

A child plan ensures financial protection for important life goals like education and marriage, even if the parent is no longer around.

Lump-Sum Payout on Maturity

At the end of the policy term, the child receives a lump sum payout, which can be used for higher education, business setup, or other financial needs.

Waiver of Premium Benefit

In case of the policyholder’s unfortunate death, the insurance company waives off all future premiums, ensuring that the policy remains active and the child receives the benefits as planned.

Partial Withdrawals for Urgent Needs

Some child insurance policies allow partial withdrawals, which can be useful for covering urgent education-related expenses.

Tax Benefits Under Section 80C & 10(10D)

Premiums paid towards a child insurance policy qualify for tax deductions under Section 80C, and the maturity benefits are tax-free under Section 10(10D).

Accidental and Health Coverage Add-ons

Additional riders like accidental death, disability, and critical illness coverage can be added to enhance the financial security of the child.

Types of Child Insurance Policies

Child Endowment Plans

These plans offer a mix of insurance and investment, ensuring a guaranteed payout at maturity.

Unit Linked Insurance Plans (ULIPs) for Children

A ULIP-based child insurance policy allows investment in equity or debt funds, offering market-linked returns with life insurance benefits.

Child Money-Back Plans

These policies provide periodic payouts at key milestones of a child’s life, such as school completion and higher education.

Factors to Consider Before Buying a Child Insurance Policy

Coverage Amount

Ensure the sum assured is sufficient to meet future financial goals like higher education and marriage.

Policy Term

Choose a term that aligns with the child’s major milestones, such as graduation or higher education needs.

Premium Affordability

Select a policy that offers optimal coverage within your budget.

Claim Settlement Ratio

Check the claim settlement ratio of the insurer to ensure a hassle-free claim process.

Investment Component

Opt for plans with investment benefits to grow savings over time.

How to Buy the Best Child Insurance Policy?

Step 1: Assess Your Child’s Future Financial Needs

Calculate estimated education, settlement, and marriage costs.

Step 2: Compare Different Policies Online

Use online tools to compare different child insurance plans based on benefits and premium costs.

Step 3: Choose a Plan with Premium Waiver

Select a policy that continues even after the parent's demise without additional premium payments.

Step 4: Check for Additional Riders

Look for riders like critical illness, accidental death, and disability benefits.

Step 5: Apply Online or Visit an Insurance Provider

Complete the application process online or visit a financial advisor to finalize the policy

Why Choose Apex Insurance for a Child Insurance Policy?

  • Comprehensive Child Insurance Plans for long-term financial security.
  • Flexible premium options to suit different financial capacities.
  • Guaranteed payouts to support education and settlement goals.
  • Expert guidance to help you choose the best plan for your child’s future.

We are ready to help you