3 Top Insurance Policies for Children

As parents, we want to give our children the best possible education and facilities. However, the cost of education, medical treatment, etc., has seen an incredible rise due to the rise of inflation rates in the past couple of years. This often scares the parents and makes them wonder how they will manage their daily expenses and save a lump-sum amount for the future. Moreover, the Covid-19 pandemic has impacted the world and has made us realise the uncertainties of life and the importance of having a financial plan ready in advance.

Investing in the best insurance policy for child gives the parents peace of mind. It ensures that their child is financially protected and can continue to achieve their goals even if the parent is not around to provide a financial backup.

In this article, we will look at the best insurance policy for child parents can consider investing in.

A. Unit Linked Insurance Plan (ULIP)

• Unit Linked Insurance Plan is one of the best insurance policies for child parents can invest in.
• Unit Linked Insurance Plan (ULIP) comes with a combination of investment plan as well as insurance. In other words, one part of the premiums you pay is used for providing financial security to your child. The remaining part of the premium is used as an investment in market-related options, such as bonds, equity, stocks, shares and more.
• Another benefit of investing in a Unit Linked Insurance Plan (ULIP) is tax deduction benefits. Parents can claim upto Rs. 1.5 lakhs of tax deduction benefits in one financial year under Section 80C of the Income Tax Act, 1961.
• This plan provides a lump-sum amount of death benefits to the child in case of an untimely demise of the parent.

B. Public Provident Fund (PPF)

• Public Provident Fund (PPF) is another one of the best insurance policies for child in India.
• This plan comes with a lock-in period of 15 years. However, there are chances you might come across a certain financial emergency, such as a child's education fees, cost of medical expenses, etc. In this case, you can partially withdraw a certain amount after completing the 6th year of the policy.
• You have to deposit a minimum of Rs. 500 and a maximum deposit of Rs. 1.5 lakhs in one financial year.
• In case of the parent's untimely and unfortunate demise, PPF provides a lump sum amount of death benefits to the child.
• By investing in Public Provident Fund (PPF), you can claim tax deduction benefits of upto Rs. 1.5 lakhs under Section 80C of the Income Tax Act, 1961.

C. Single-Premium Child Plan

• In the case of a single premium child plan, the parent will have a lump-sum amount of premium for the entire policy period.
• This will ensure that the parent does not have to worry or keep a track record of when he has to pay the premium.
• You can claim tax deduction benefits of upto Rs. 1.5 lakhs under Section 80C of the Income Tax Act, 1961.

Your Way Forward

You now know what are the best insurance policies for child in India you can invest in. Providing your child with a financial safety net will secure him from the clutches of financial struggles and ensure that they can fight the rising cost of inflation rates.

Bharti AXA is a top-rated insurance providing company that provides the best insurance policies for child. We ensure that you are your child are financially sound and your child can avail the best education and facilities available and can turn his dreams into reality.

For more information on the best insurance policies for child, get in touch with us today.