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Saving For The Child: How To Decide The Best ULIP For Your Child?

Updated On Jul 09, 2021

ULIP child plans allow investors to start investing 60 to 90 days after the birth of their child, allowing them to immediately start building wealth and planning the child's future.

In comparison to standard child plans, ULIP plans offer the best of both worlds: saving and insurance while building wealth for your child.

We've covered all the things you need to know before investing in a ULIP child plan in this article.

Things To Know Before Buying A ULIP Child Plan

The following are some things to consider when purchasing a ULIP child plan.

  • Check For Premium Waiver Option

The primary benefit of ULIP-based child plans is that they have a premium waiver rider, which means that if the child's parent dies unexpectedly, the insurer will provide for all future premiums. Unlike other children's insurance plans, this one does not expire and remains in effect indefinitely. Until the child reaches legal age, the insurer pays the parent's future premiums.

Parents should definitely consider this before buying a ULIP child plan as it ensures that the insurance will remain intact even during difficult times.

  • Check If The Plan Is Gender Specific

While purchasing an insurance plan for your kid, check if the arrangement is gender-oriented as certain plans give special provisions for a girl child.

Additionally, some ULIP-based kid plans are gender-neutral, meaning they can be purchased for either a girl or a boy up to the age of 18. 

This is an extremely important aspect to keep in mind as it will help you unlock additional benefits.

  • Look for a safety switch alternative

This choice under a ULIP child plan can help you increase your profits. During the latter four years of the policy, you can switch your investments from high-risk to low-risk funds in a methodical manner.

  • Choose a Diversified Portfolio

ULIPs have the distinct advantage of allowing the investor to engage in a diverse portfolio of equity investments in small, mid, and big-cap companies. This will allow for optimum wealth generation to support your child's future more efficiently.

  • Pick A More Flexible-Premium Allocation Option

If the policyholder wishes to change the sum assured in the policy, they can do so starting in the sixth policy year, as long as all of the premiums are paid. This option will allow the policyholder to select the maximum number of times the sum guaranteed can change within a policy term.


ULIP based child plans allow the accumulation of wealth for your child's future along with the dual benefits of investment and Insurance.

These plans can be extremely beneficial in the long run and will help ensure financial protection to the child even in your absence. It is recommended to keep the above factors in mind while buying such a plan for your child.

Also Read:

How Are ULIP Plans A Smart Investment Option?

Invest Your Money And Secure Your Life With The Best ULIPs

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.  

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