Child insurance plans are basically designed for financially securing children’s future and meeting their financial needs such as education and marriage. Child insurance plans are investment-cum-insurance plans that provide financial cover in the event of the earning parent’s unfortunate demise as well as meet the child’s financial needs in future.
Children’s plans provide the benefit of life cover along with building up a corpus of the fund to meet the child’s future needs such as education and marriage.
Entry Age: The entry age for the parents for buying child plans range from a minimum of 18 years to a maximum of 60 years.
Maturity Age: The maximum age of the parents for the plans to mature range from 60 years to 75 years.
Policy Term: The tenure of the policy can be for a minimum period of 8 years to a maximum of 25 years, depending on the entry date or the timeframe desired by the policyholder.
Minimum Annual Premium: Some insurance companies specify minimum annual premium ranging from Rs 6,000 to Rs 25,000. This would also depend on the desired policy cover.
Minimum Sum Assured: The minimum sum assured for the child plan ranges from Rs 25,000 to Rs 3.50 lakh. Some insurance companies specify the minimum sum assured in terms of multiples of the annual premium, which can be 5 to 10 times the annual premium.
Almost all insurance companies in India offer child plans with varied benefits and features.