Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Claim, renew, manage & moreLogin
Hurry Up!
Save upto ₹54,600 in taxes under 80C & 80D. Buy a term insurance plan now!
View Plans

Features of Child Insurance Plan Which Make it a Must Have Investment Plan

Updated On Jun 21, 2021

As parents, you need to do everything to secure your child's future. Planning is essential, the earlier you plan,the more you invest,and the more you will add towards a child's bright future. Through investment in Child Insurance  Plans you do not need to worry about your child's future because it is one of the smartest ways to protect and safeguard your child's future during difficult circumstances. 

Child Plans are specially designed for children to overcome their financial needs in future. Child plans provide you the dual benefits of insurance and investment. These plans help in building up the investment corpus which helps children in achieving the major milestones in future. 

Child Plans pays you the lump sum amount as sum assured on maturity of the policy along with other benefits which covers your child's education expenses including school fees, tuition fees along with marriage expenses. Child Plan offers you a wide array of unique and exciting investment options for your child's bright and secure future. 

Child Plan offers you a wide range of features to meet financial requirements of your child in future. 

In this article we will explain some features of Child Insurance Plan to help you make an informed decision before purchasing a plan. 

Key Features of Child Insurance Plans Which Make it a Must Have Investment Plan

  • Long-Term Investment Option

Child Plan offers both short term investment plans and long term investment plans depending upon your requirements.An ideal investment plan for the child will offer long term investment options or assets such as equity funds, etc. The longer the investment plan, the higher the payout will be received at maturity.

  • Goal Protection 

Child Insurance Plan provides you the option of Goal Protection which includes the goal of providing higher education and other required expenses to your child even in your absence. It not only provides life cover amount at death of insured but investment also continues. The plan will mature on maturity date and provides maturity value to the nominee of the policy in case some unfortunate happens with the insured. 

  • Partial Withdrawal

Many Child Life Insurance Plans come with the facility of Partial Withdrawals. In this facility, you can withdraw a certain amount from your fund value multiple times during the plan tenure. The facility of partial liquidity will be applicable only after your child turns 18.

There are some following features too along with these 3 key features : 

  • High Returns

The returns from Child Plan is as high as 12% which is above the rate of inflation in the long term. Child Insurance Plan not only helps you in protecting your investment from getting eroded but also helps in faster growth of funds.

  • Choice of Funds

Child Plans gives you the flexibility to choose among the different funds options available such as equity, money-market ,debt, etc according to your requirements. However, you also have the flexibility to switch between the funds after a fixed period. 

Conclusion

Buying a child plan is not an easy task. You need to consider the above mentioned factors before purchasing it. A perfect Child Insurance Plan should include partial withdrawals so that you can withdraw an amount multiple times, long term investment so that returns become higher and goal protection facility to take care of the financial needs of your child when you are not around. 

Also Read: Why You Should Consider Investing In Child Plans?

Top Reasons To Buy A Child Insurance Plan

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Popularly Opted Term Insurance Sum Assured

People Also Read

Must BuyMust Buy

Why to Buy Life Insurance Policy Online from InsuranceDekho

  • Tax benefit upto 1,50,000*
  • Claim support everyday 10AM-7PM
  • 66 Lacs+ happy customers