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Why Should I Buy a Child Insurance Plan?

Updated On Jun 29, 2021

Child Insurance Policy is a wonderful opportunity for you as a parent to save enough with regular investment along with valuable financial protection features during the plan tenure which makes it unique from other available plans. Increasing middle-class aspirations, nuclear families, rising cost of education, changing lifestyle, and the risk of growing diseases make Child Insurance Plans act as a multi beneficial financial cushion for your Children's. 

A Child Insurance Plan can help in reducing risks so that your children can acquire education without any kind of financial interruptions. Child insurance plans can help you ensure regular payouts to fulfill your basic necessities of life. Child Insurance Plans goal is to help your child achieve success even if you are not around to ensure the same. 

In this article, we are going to discuss some reasons for why should you purchase Child Insurance Plans.

Reasons to Purchase Child Insurance Plans

There are variety of compelling reasons which you should consider while purchasing the Child Insurance Plans

  • Helps in Achieving Future Goal

    Many Child Insurance Policies have vital and proportionate equity-debt allotment. Well Knowing fund managers make sures that your investments fetch the best possible returns on your money. In some plans, there are automatic facilities for funds rebalancing that maintain an allotment in an equal proportion irrespective of market movements.
  • Loans and Collateral for Loan

    Loans Facility help you afford costly Higher Education if your child desires to study in universities abroad. Despite scholarships offered to extraordinary students, there are many finances that lead to a shortfall in funds that have to be self- fulfilled. Banks and NBFCs offer education loans only if there is a strong relationship between a parent and coordinator. Insurance policies are the best form of policies that not only help you in fulfilling major milestones through pay-outs but also stand as amazing collateral to avail loans. Under a Child Insurance Plan, you can avail a loan on the policy from the insurance company itself. 
  • Coverage after Policy Holder’s Death

    Child Plans like Jeevan Nivesh Plan from Canara HSBC OBC Life Insurance, can help you leave a patrimony for your child as well as for his/her education. As a patrimony your child will receive a sum assured after your demise. The policy can fulfil your responsibilities of providing your child’s with higher education and continue to provide cover to your life till the age of 100.
  • Tax Benefits

    Child Insurance Plans provide you with tax benefits. Under this benefit, premiums you paid during the policy tenure upto Rs 1.5 lakh are qualified for deduction under Section 80C and Section. And the maturity value and partial withdrawals if any you make after the lock-in period is free from any kind of tax. 
  • Cover Against Disability

    As a parent one of the biggest blocks for you is the uncertainty of life. Life is unpredictable, no one knows what will happen the next moment. In case of any unfortunate situation that results in disability, your capacity to earn the money could be affected. Under Child Plans, this risk will be less and the company will raise all future premiums so that the child’s education remains undisturbed. 


By availing Child Insurance Plans you as a parent can achieve more than just your child's life goals. The above mentioned reasons are enough to make you understand why you should buy Child Insurance Plans for your child. This is the most popular vehicle and a comprehensive solution for you through which you can make your child's future bright and free from any kind of hassles. 

Also Read: Features of Child Life Insurance Plans

List Of Child Plans Available In India

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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