• Tips to Choose the Best Child Insurance Plan for Planning Your Child’s Education

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    The main aim of a life insurance policy is to protect one’s family from the financial insecurity associated with unexpected death. There are different forms of life insurance covers available in the market. While term plans are the most commonly used life covers, there are other plans that allow policyholders to build a corpus for future requirements. Child insurance plans are offered by almost all the top insurers in the market to protect the future of one’s children. These plans allow policyholders to build a corpus for the higher education and marriage of children.

    A good education is of utmost importance in this competitive world. The cost of education is getting expensive day by day. If you wish to provide the best education for your child, you need to invest in a plan that offers maturity benefits high enough to take care of the huge cost of higher education. Child insurance plans are mostly endowment plans or unit-linked plans offered by various insurers in the market. You may choose the policies based on your specific requirements.

    Features of child insurance plans

    Some of the features of child insurance plans are listed as follows:

    • Customers can choose between market-linked child insurance plans or non-linked plans based on their risk appetite.
    • In the case of market-linked insurance plans, customers can choose from debt plans, equity plans, or hybrid plans based on their risk profile.
    • Parents can choose a policy term anywhere between 5 years and 25 years depending upon their requirements.
    • Most plans offer flexible premium payment terms for policyholders. Customers can choose from yearly, half-yearly, quarterly, or monthly premium payment options.
    • Unlike term plans, child insurance plans offer guaranteed maturity benefits at the end of a specific policy term.
    • In case of the death of the insured, future premiums are waived in most child insurance plans available in the market.
    • Typically, child insurance plans provide lump sum payment upon the death of the insured person before the maturity date.
    • Maturity benefits are paid at the end of the policy term. The built-up corpus along with additional bonuses and final bonuses will be paid to the policyholder upon successful completion of the policy term.

    Factors to consider while choosing a child insurance plan

    Before you sign up for a child insurance plan, make sure that you consider the following factors:

    • Identify your goals: Before you choose the plan to invest, you need to identify your goals on how much money you wish to have upon maturity. While it is too early to know what your child will be studying, it is better to build a corpus slightly higher than what you wish to have. By knowing how much money you wish to have, you can calculate the amount you need to invest every year in the policy.
    • Develop a plan: When you are opting for child plans, you need to have a proper plan on how to proceed with the investing. Make sure you choose the sum assured amount based on your child’s requirements. Most of the life insurance companies in the market have EMI calculators in their official website for customers to check the amount they will be spending. With these tools, people can develop a strategy on how to invest in child plans and build a corpus for their children.
    • Take inflation into consideration: One mistake that people often make is that they fail to consider inflation while determining the sum assured amount. The cost of products will not remain the same over the course of 15 or 20 years. The same goes for education as well. For this reason, it is not a good idea to choose the sum assured amount based on today’s expenses. When the sum assured amount is adjusted for inflation, you will have enough money to secure the education requirements of your children.
    • Choose the type of policy: Child plans are available as market-linked plans as well as non-linked plans. If you have a high appetite for risk, you may opt for market-linked plans where there is a great potential for high returns. Non-linked plans are a form of endowment plans that offer savings benefit along with accrued interests and bonuses. With non-linked plans, you may also accurately calculate the exact maturity amount you might be getting.
    • Choose the right plan and company: You may choose the right company based on various factors such as claim settlement ratio, service quality, choice of plans, etc. Once you have decided everything, you need to pick the right plan from the list of plans offered by the company. Read the policy document carefully and understand the benefits offered before choosing the plan that is suitable for you.

    Conclusion

    Choosing the right plan for your children’s education is one of the major decisions you may have to make in your life. The tips mentioned above will help you pick the right one from the long list of plans available in the market. With the right plan, you may build a corpus sufficient to take care of your child’s future education expenses. While the costs of child plans are significantly higher than term plans, the maturity benefits offered here make them a worthwhile investment.

    *The customer reviews/feedback/opinions expressed on this website are solely of their authors and do not reflect, in any way, the view of BankBazaar Insurance.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    Child Education Insurance Reviews

    • Aegon Life Life Insurance
      "Aegon Life is Best for Term insurance"
      0.5 5.0/5 "Blown Away!"
      I bought Term insurance Plan from Aegon Life. It's super fast service and customer friendly. Quick response for our problems. Its a world reputed Group working in more than 30 country and joint venture with Times Group in India business. I recommend this company to my colleagues and friends
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Oct 15, 2019
    • Aegon Life
      Aegon Life Life Insurance
      "Aegon Life is Best for Term insurance"
      0.5 5.0/5 "Blown Away!"
      I bought Term insurance Plan from Aegon Life. It's super fast service and customer friendly. Quick response for our problems. Its a world reputed Group working in more than 30 country and joint venture with Times Group in India business. I recommend this company to my colleagues and friends
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Oct 15, 2019
    • LIC Life Insurance
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      LIFE INSURANCE CORPORATION OF INDIA is the insurance provider where i have taken the JEEVAN LAKSHYA policy before 15 years and i am using it, policy premium i ma paying on yearly basis also the policy coverage is for complete family. /it also provides the accidental benefits with this policy.
      Was this review helpful? 6
      , new delhi
      Reviewed on Jan 30, 2019
    • LIC Life Insurance
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      I have taken the JEEVAN LABH life insurance policy with the LIFE INSURANCE CORPORATION OF INDIA where the tenuity period of this policy is for twenty years also i am holding it since from last 15 years. The premium i am paying for yearly once with this policy.
      Was this review helpful? 7
      , new delhi
      Reviewed on Jan 30, 2019
    • LIC Life Insurance
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      I am holding the JEEVAN SATHI policy with the LIFE INSURANCE CORPORATION OF INDIA since from last fifteen years as the maturity period is for twenty years with this life insurance policy. It gives the life coverage after the maturity period.
      Was this review helpful? 3
      , new delhi
      Reviewed on Jan 30, 2019
    • LIC Life Insurance
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      I am using the LIFE INSURANCE CORPORATION OF INDIA since from last 15 years where i have purchased the JEEVAN SARAL policy which gives the policy coverage is for complete family where the maturity period is for twenty years also the premium i pay by yearly once.
      Was this review helpful? 6
      , new delhi
      Reviewed on Jan 30, 2019
    • LIC Life Insurance
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      The name of the policy is JEEVA ANAND policy that i have purchased it through the LIFE INSURANCE CORPORATION OF INDIA before 15 years. where the maturity period is for twenty years also the policy coverage is for complete family. The premium i pay on yearly once.
      Was this review helpful? 5
      , new delhi
      Reviewed on Jan 30, 2019
    • LIC Life Insurance
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      I have purchased the life insurance policy with the LIFE INSURANCE CORPORATION OF INDIA where the name of the policy is MONEY BACK where i am holding it since from last 15 years. It gives the life coverage after the maturity period with this insurance policy.
      Was this review helpful? 3
      , new delhi
      Reviewed on Jan 30, 2019
    • LIC Life Insurance
      "GOOD POLICY"
      0.5 5.0/5 "Blown Away!"
      I am holding the BHIMA GOLD policy with the LIFE INSURANCE CORPORATION OF INDIA LIFE INSURANCE CORPORATION OF INDIA where i have been using it from last 10 years. The premium i pay for 3 months once also the maturity period is for 15 years with this policy.
      Was this review helpful? 1
      , yamuna nagar
      Reviewed on Jan 30, 2019
    • LIC Life Insurance
      "GOOD POLICY"
      0.5 5.0/5 "Blown Away!"
      I have taken the JEEVAN SARAL policy with the LIFE INSURANCE CORPORATION OF INDIA where the maturity period is for 12 years also the premium i pay for 3 months once for this insurance policy. It gives the self coverage with this insurance policy.
      Was this review helpful? 1
      , yamuna nagar
      Reviewed on Jan 30, 2019
    • LIC Life Insurance
      "GOOD POLICY"
      0.5 4.0/5 "Great!"
      LIFE INSURANCE CORPORATION OF INDIA is the insurance provider where i have taken the life insurance policy. I am not aware of the name of the policy but it is a life insurance policy where the maturity period is 20 years along with that it gives the life and accidental coverage with this policy.
      Was this review helpful? 1
      , nagpur
      Reviewed on Jan 30, 2019
    • LIC Life Insurance
      "GOOD POLICY"
      0.5 4.0/5 "Great!"
      I have taken the life insurance policy of CHILD PLAN with the LIFE INSURANCE CORPORATION OF INDIA where i am using it since from last en years also the maturity period if this policy is for 20 years and the premium i pay yearly once. It gives the self coverage.
      Was this review helpful? 3
      , nagpur
      Reviewed on Jan 30, 2019
    • ICICI Prudential Life Insurance
      "GOOD POLICY"
      0.5 3.0/5 "Satisfactory"
      The reason for taking the life insurance policy with the ICICI PRUDENTIAL is because it is good policy to use. Premium and the IDV value is satisfactory wit this insurance policy. It is the term plan, i have not received the hard copy yet with this policy.
      Was this review helpful? 3
      , hyderabad
      Reviewed on Jan 30, 2019
    • ICICI Prudential Life Insurance
      "GOOD POLICY"
      0.5 4.0/5 "Great!"
      I have purchased the accidental policy with the ICICI PRUDENTIAL where in am using it since from last one year and it gives the coverage for self for any accidentals. Premium i am paying it on 6 months once as 6k-10k with this insurance policy.
      Was this review helpful? 2
      , nizamabad
      Reviewed on Jan 29, 2019
    • LIC Life Insurance
      "GOOD POLICY"
      0.5 5.0/5 "Blown Away!"
      I have taken the life insurance policy with the LIFE INSURANCE CORPORATION OF INDIA and the name of the policy is JEEVAN SREE plan where the maturity period is for 22 years and i got the sum assured amount added on that they are giving the coverage after the maturity.
      Was this review helpful? 1
      , nizamabad
      Reviewed on Jan 29, 2019
    • ICICI Prudential Life Insurance
      "GOOD POLICY"
      0.5 5.0/5 "Blown Away!"
      I have taken the EULIP policy with the ICICI PRUDENTIAL where it gives the self coverage also the maturity period of this policy is for 20 years. Premium i pay on monthly basis with this policy. The documentation process is simple and easy to get the policy.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 29, 2019
    • LIC Life Insurance
      "GOOD POLICY"
      0.5 4.0/5 "Great!"
      LIFE INSURANCE CORPORATION OF INDIA is life insurance provider where i have taken the MONEY BACK policy with this and i am using from last few years and the policy has got matured. The maturity period is for 15 years where the premium i pay yearly once.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jan 29, 2019
    • Bharti Axa Life Life Insurance
      "BETTER"
      0.5 3.5/5 "Pretty good"
      I am holding the life insurance policy with the BHARATI AXXAwhere i have been using it since from last two years and the name of the policy is CHILD PLAN where the maturity period is for 10 years. I am paying premium for 6 months once with this policy.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Jan 29, 2019
    • Aegon Life Life Insurance
      "GOOD POLICY"
      0.5 5.0/5 "Blown Away!"
      The reason for taking the life insurance policy with the AEGON LIFE is because when compared to the other insurance polices it is best. It is the term insurance policy where i pay the premium on monthly basis. The policy coverage is for self and spouse.
      Was this review helpful? 3
      , hyderabad
      Reviewed on Jan 29, 2019
    • LIC Life Insurance
      "GOOD POLICY"
      0.5 4.0/5 "Great!"
      I have been using the life insurance policy with the LIFE INSURANCE CORPORATION OF INDIA since from last 10-15 years where the maturity period of this policy is for long term added on that the policy coverage is for complete family. Premium i pay on yearly once for this insurance.
      Was this review helpful? 3
      , noida
      Reviewed on Jan 29, 2019
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