Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Claim, renew, manage & moreLogin

Things Parents Must Check While Buying A Child Plan

Published On Jun 18, 2021

A child plan is an investment cum life insurance plan that helps you build an investment corpus for your child's future in a planned and systematic manner. Child plans help you accumulate and appreciate your wealth overtime to meet the financial expenses during key life stages of your child like higher education, marriage or entrepreneurial ventures. These plans also provide you with a life cover which provides a sum assured to your child in times when you are not around them.

In this article, we have listed the key things which as parents you must check at the time of investing in a child plan.

Things To Keep In Mind While Buying A Child Plan

Following are the things which you must check while considering a child plan as an investment option for the bright future of your child - 

Nature of Plan 

The nature of the plan is important to understand while buying a child plan because the return depends on the type of plan bought. If you want to satiate your risk appetite, it is recommended that you opt for unit-linked child plans. Such plans, in the long run, promise market-linked returns and help grow the corpus. If you're more inclined towards security, an endowment child plan would be more appropriate for you as it provides protection from the market frenzy.

 Waiver of premium (WOP) benefits

The premium waiver benefit is to ensure that your family is not financially burdened in your absence, and all the future premium instalment (s), will not be required to be paid under the policy. It extends protection from financial and income loss, and the policy remains intact till fruition.

Sum Assured of Life Cover

It is a crucial factor to look for while buying a child plan as in the unfortunate event of loss of life, your beneficiary will receive the Sum Assured immediately and the future premiums will be waived. 

Premium Payment Terms and Policy Period

It is also necessary to know about the premium payment terms of the policy you're about to buy, and if they are offered on a flexible basis. The policy term is the key factor of a policy and is crucial to understand the maturity period of the policy and when the returns can be availed.

Grace Period and Revival Facility

It is important to note the grace period set by the company in case of a delay on the part of the policyholder to pay the premiums. If the situation escalates further, the policy, if stated by the company, could lapse. To avoid that, it is important to note if the policy will remain in force during the grace period.

Partial Withdrawals and Loan Facility

If an unforeseen situation calls for an immediate need for funds, the partial withdrawal clause of the child plan, if availed, can help withdraw money before the maturity period is reached. Therefore, it is important to check, while buying a child plan, if it has a partial withdrawal clause to be unlocked in an emergency.


The benefits of a child plan might differ from company to company but the factors stated above are the key to availing the perfect child plan. Before buying a child plan, it is necessary to take into consideration the factors we have stated above and not miss out on the most important things that will make your child plan an ideal one.

Also Read: 

5 Best Child Life Insurance Plans To Buy In 2021

5 Reasons To Purchase A Child 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
  • 50 Lacs+ happy customers
Find the right life insurance for you
By clicking, I agree to *terms & conditions  and privacy policy.
Find the right life insurance for you
By clicking, I agree to *terms & conditions  and privacy policy.