Benefits of Investing in a Child Insurance Plan
1. Higher Returns
With guaranteed benefits, you can secure your child’s future and grow your savings at a higher yield than bank deposits.
2. Flexibility of Tenure
You can easily align your investments according to your child’s current age and plans by investing for 11 to 21 years.
3. Online Processing
Invest online for a child insurance plan from the safety and comfort of your home/office and secure their future.
4. Loan Against Policy
As it is a guaranteed plan, you can avail of a loan of up to 70% of the surrender value to tide over a temporary financial crunch. This way, you neither compromise your child’s future nor have to put yourself in a hard place. The interest rates on loans are transparent and linked to the 10-year GSec.
5. Start Small
As you are young, you can start with a small Sum Assured(SA) of as low as Rs. 25,000 and progress to larger amounts, depending on your premium paying capacity.
6. Life Insurance Benefit and Policy Continuance
In case of an unfortunate event, your child will continue to receive all the benefits as planned. The future premiums are waived.
The nominee would receive a lump sum payout to support your child in a time of need. The death benefit will never be less than 105% of all premiums paid thus far.
If the company declares any surplus or profits, the policyholders can participate in them in bonus. The simple annual bonus gets accrued with the policy if all due premiums are paid. The bonus is payable at maturity.
*In case of participating plans
8. Flexible Premium Payment term
You have the option to choose from “Limited Pay” or “Regular Pay” according to your needs and policy term. With regular pay, pay the premium for the entire policy term. However, with limited pay option, pay the premiums less than the policy term.
9. Save Tax
According to the prevailing rules, you can avail tax benefits under section 80C of the IT Act, 1961, on the premiums paid. However, these tax laws are subject to change from time to time.
10. Enhance Protection
Get protected against hospitalization, including the need for ICU and surgery, with Hospital Cash Rider. And to protect your family from the trauma of accidental death, add the Accidental Death Benefit Rider. Such riders are not mandatory and available at an additional cost.
You can pick any payout choice that suits your child’s needs between the Money-back option and the Endowment option. Many child insurance plans offer you to select your policy term. You can pick a policy term dependent on the age and needs of your child.