Best Child Insurance Policies in India 2024

Factors to Remember Before Investing in Child Insurance Plans

• Adequate Life Insurance

A sufficient amount of life insurance is required to guarantee your child's future, even in the event of your absence. You should seek the assistance of a financial advisor and financial planner as soon as you determine the type of insurance you require and purchase a child plan in accordance with that advice.

Using a life insurance calculator from a reputable website will also give you a general idea of this.

• Correct Policy Term

Verify that the plan's tenure corresponds to the actual need. It's difficult to choose the ideal policy period. Too little time and term insurance lose its purpose, and if you choose a period that is too long, you will end up paying higher premiums than necessary.

Therefore, be careful to select the right policy tenure for your child's insurance policies.

• Making Individual Provisions for Each Child

You must make individual provisions for each child. This will also stop you from drawing too much from your common savings pool for the older child in case your savings are insufficient, as doing so frequently puts the future of your younger child at risk.

• The Significance of the Premium Waiver Rider

Many people purchase an insurance policy for the future of their children without checking to see if it includes this provision. The Premium Waiver Feature ensures that the policy remains in effect even when you are not present and that your child receives the funds when they are in need.

• Additional Benefits

While you are away, your child may require ongoing financial assistance, for which the entire amount due may be spent. Many child plans include the Premium Waiver Option, which allows the insurance company to pay the premium on your behalf as a means of providing financial support. Make sure to include this component in your child's plan to avoid leaving out as many people.

You may also want to read The Life and Health Insurance Checklist

Overview Of the Top Child Insurance Plans of 2024

Let us take a look at the performance of the best child insurance plan in India 2024 here in detail-

1.  Bajaj Allianz Young Assurance

A top-notch insurance provider and the best children’s plan in India, Bajaj Allianz offers a wide range of insurance plans for various types of people. For various purposes, you can select from a variety of plans.

If you want to start saving, you should certainly choose one of the Bajaj Allianz savings plans because it offers you basic protection coverage and makes it possible for you to save your money effectively. With a small premium payment, it is a typical participating plan. This strategy is intended to effectively lay the foundation for your child's future.

With the aid of this best child plan in India, your kid's goals can be successfully attained. 

Features

• The Guaranteed Maturity Benefit (GMB), Vested Bonus (VB), Guaranteed Additions (GA), Interim Bonus (IB), and Terminal Bonus are all included in this plan (TB). For your maturity benefit, you may select any one option for a cash instalment. After the policy reaches its maturity, you will get your initial instalment.
• If all premiums have been paid in full and the policyholder dies, the nominee will receive the death benefit. The death benefit is represented by this amount. The GMB or the sum assured, whichever is higher, can be used.
• If all unpaid premiums have been made, the policy will be changed to one that is fully paid when the policyholder sustains a permanent total disability as a result of an accident.
• It offers a minimum entry age of 18 and a maximum of 50.
• The maximum majority age of this scheme is 60 years.
• It also offers a rebate for higher assured sums.
• It offers a premium with policy term deposits.
• There is a guaranteed maturity offered along with the guaranteed additions to the policyholder.
• On the maturity of this policy, the vested bonus plus the terminal bonus is paid to the insured.
• Tax benefits under U/S 80C of the Income Tax Act can also be availed.

2. Bharti AXA Life Child Advantage Plan

Bharti AXA Life Insurance Company provides a large selection of insurance plans in various categories. The company has a solution for every need, whether it be for protection, savings, or retirement.

The Child Advantage Plan by Bharti AXA Life is also considered the best children’s plan insurance and is a conventional child plan that guarantees returns while allowing participants to share in the company's profits through bonuses earned. The non-linked participating Bharti Axa Life Child Advantage Plan gives participants the freedom to select between money-back and endowment options.

Additionally, this plan offers an option for a built-in premium waiver benefit.

Features

• You will receive guaranteed pay-outs to cover your child's educational needs in the final five years before maturity if you choose the Money back option. You will receive a guaranteed payout from Maturity for the needs of your child's higher education and career.
• If the policy is still in effect, you will receive a guaranteed lump sum amount under the Endowment Plan at Maturity to assist in realizing your child's dream.
• Your child's needs will be met thanks to its built-in Premium Waiver benefit. In the unfortunate event that the parent (the Life Insured) passes away, the future premiums are forgone while the policy's benefits remain in effect.
• This policy offers the flexibility to choose from different policy tenures.
• The maximum maturity offered for the scheme is at 76 years of age.
• Depending on the age of the children, you can choose from the terms of 11 years to 21 years.

3. HDFC SL YoungStar Super Premium

The goal of the unit-linked HDFC SL YoungStar Super Premium Plan is to protect the child's future by accelerating growth and providing life insurance coverage.

A unit-linked insurance plan called the HDFC SL YoungStar Super Premium Plan aids in saving money for use at various stages of a child's life, including higher education, marriage, and more, and thus, is also the best policy for child insurance.

Features

• HDFC SL YoungStar Super Premium Plan gives flexibility to the policyholder to choose from 4 different fund options to invest in.
• It also gives the customer flexibility to choose a premium amount.
• You can also customize the plan as per their need and suitability.
• Tax benefits can be availed U/S 80C of the Income Tax Act.
• You have the freedom to select any sum as the "Sum Assured" in multiples based on your age. Less than 45, 10 x over 45, and 7 x the annual premium. Life Option and Life & Health Option are your options.
• Maximum premiums are unlimited, with a minimum premium of Rs. 15,000. All premium payments must be made yearly.
• The minimum and maximum policy terms are 10 and 20 years, respectively. The 11 to 14-year term period is not available.
• In the unfortunate event of your passing or serious illness, this plan will provide your child with the Sum Assured (Beneficiary). No more premiums are necessary for your family to pay. All of the original regular premiums for your policy will be paid in full if you choose the Save benefit option of the HDFC SL YoungStar Super Premium. Any Critical Illness or Death Benefit coverage will end immediately. The plan beneficiary will receive the Fund Value when it matures.
• You can choose the sum assured in accordance with the level of protection you require. You can choose investment funds based on your risk and return preferences.

4.  ICICI Prudential Smart Child's Regular Premium

This traditional participating endowment plan that is beneficial for the child, the ICICI Prudential Smart Kid Regular Premium Plan, ensures the parent's life.

If the parent passes away during the policy's term, the nominee will receive the Sum Assured to cover any immediate financial needs, and the insurer will waive future premium payments so that the Maturity Benefit is paid when it is due.

Features

• This is a plan that also offers 2 different options for premium payout.
• The maximum maturity age for this scheme is 64 years.
• The tenure for the policy ranges from 10 years to 25 years.
• If all premiums are paid, this plan guarantees the Maturity Benefit in accordance with the selected option in all situations.
• There are two more rider benefits that are available.
• This policy offers a Vested Bonus and Guaranteed Additions of 3.5% on the Sum Assured for the first 4 years.
• Under section 80C, yearly life insurance premium payments up to Rs. 1,50,000 are eligible for a deduction from taxable income.

5. LIC New Children's Money Back Plan

A special plan from LIC called the New Children's Money Back Plan was created to meet all of the needs of growing children, including their education, wedding, and other expenses.

In addition to providing children with risk coverage, this participating, non-linked money-back scheme also provides survival benefits. This is also one of the best child plans in India.

Features

• A maturity benefit that equals the sum assured, as well as all bonuses earned during this time period, will be paid.
• When the life assured reaches a certain age, a survival benefit equal to 20% of the basic sum assured will be paid.
• The sum assured on death and any accumulated bonuses will be paid if the unfortunate situation of the life-assured passing away after risk commencement occurs while the policy is in effect.
• Policyholders are qualified to share LIC's profits and earn bonuses as a result.

6. AEGON Life Rising Star Insurance Plan

AEGON Life Rising Star Plan is a child insurance policy that is linked to a unit (ULIP).

This is a Non-Traditional Plan with No Bonus Facility, in which the parent is Life Insured, and this plan guarantees that the parent's dreams for his child's future are not hampered by paying for future premiums in the unfortunate event of his death.

Features

• It is a plan that comes with the option of regular premium payment.
• The plan also comes with an inbuilt premium waiver benefit on the death.
• The plan gives four different options to invest in.
• It provides financial security to the child and also takes care of educational expenses by coverage until the age of 25.
• The plan also gives out multiple fund options to invest in based on the requirements.
• It also offers partial liquidity after completing five years of the plan.
• Customers can also avail themselves of tax benefits from the plan.
• It also has the leniency to increase insurance coverage during the policy.
• In this plan, policyholders can choose the Invest Protect Option, in which funds are invested in equity-oriented funds until the last three years, when they are systematically withdrawn to protect against equity market declines.
• The Fund Value is provided as the Maturity Benefit in this plan.
• The Fund Value plus the Sum Assured is paid as the Death Benefit under this plan.
• Four fund options and two rider options are available in this plan.

7. Exide Life Mera Aashirvad Plan

The Exide Life Mera Aashirvad is a child insurance program that guarantees you will have the funds necessary to fulfil your child's wishes and aspirations.

The purpose of the plan is to support a child financially in the event that the policyholder is unable to do so himself.

The program is a savings-oriented scheme that provides cash payments at pivotal times in a child's life, including marriage, education, funding for a business and many more. The child will receive the benefits that will secure his or her future while the parent is the policyholder.

Features

• The beneficiary will be given a lump sum payment equal to the entire sum assured in the unfortunate event of death during the policy term. Additional premiums will not be charged. Already paid Guaranteed Staggered Pay-out will not be subtracted from the Sum Assured.
• If premiums have been paid for a minimum of three full years, the plan will continue on a reduced paid-up basis. Reduced death benefits, guaranteed staggered payouts, and maturity benefits until maturity or death are all included in this.
• This plan offers a minimum age of 21 years, whereas the maximum is 50 years.
• The maximum age for the policy is 65 years.
• Tax benefits can be availed on this plan.
• This plan also offers flexibility to get periodic payouts.

8. Aditya Birla Sun Life Insurance Vision Star Plus

Aditya Birla Sun Life Insurance's Vision Star Plan offers comprehensive financial protection along with recurring assured payouts for paying for your child's education and securing their future even while you are away.

Features

• In the unfortunate event that the life insured passes away during the policy term, their nominee will be paid a predetermined death benefit. Once the death benefit is received, the policy will be considered terminated.
• In the unfortunate event that the life insured passes away during the policy term, their nominee will be paid a predetermined death benefit. Once the death benefit is received, the policy will be considered terminated.
•  If the life insured lives to the end of the policy term, they will be paid the accrued bonus up to that point plus any terminal bonus that may have been awarded, and once the maturity benefit has been received, the policy will be terminated.
• Your policy will not lapse if you stop paying premiums after doing so for at least two complete years; instead, it will continue on a Reduced Paid-Up basis.

9. Kotak Headstart Child Assure Plan

A unit-linked life insurance policy is Kotak Head Start Child Assure. This well-known child plan, in which the parent is the life insured, is created for the child's benefit. It provides both protection and wealth creation as benefits.

The strategy aids in systematic investment to create a corpus for the future of the child. Even in cases where one or both parents are deceased, it aids the child in realizing his or her dreams.

In the event of the death of the parent with life insurance, the child plan provides financial security to the child through a "triple benefit."

Features

• This unit-linked insurance plan provides a rare combination of wealth creation through fund investments and protection through a life insurance cover in a single product.
• When a parent whose life is insured passes away during the policy's term, a triple benefit ensures the child's financial security.
• This policy helps build wealth by setting aside money for when the child reaches adulthood. It ensures that the child can realize his or her dreams by making money available for the child's higher education, marriage, etc.
• The plan includes seven funds to accommodate all types of investors' risk tolerance. Investing in these funds aids in the accumulation of capital for the future.
• The Kotak HeadStart Child Assure Plan also offers comprehensive protection to secure the financial future of the child.
• It also offers 2 different portfolio strategies to choose from.
• With the plan, you can also avail tax benefits.

10. Aviva Young Scholar Advantage Plan

The Aviva Young Scholar Advantage Plan is a non-participating unit-linked scheme, and it is specifically designed to cater to the financial needs of the child.

It gives complete protection to the child against any type of eventualities. This is often considered the best child education plan in India 2024.

Features

• It is a plan with comprehensive insurance coverage for the child.
• In the case of the demise of the parent during the tenure, the plan also offers a waiver of future premiums.
• The plan also has an option for an add-on premium in the form of a top-up.
• It offers an option to invest in seven different funds based on the requirement.

Conclusion

This was the list of the Best Child Insurance Plan in India 2024. The above-mentioned life insurance providers are all reputable businesses with a number of benefits that the policyholder can utilize.

It ultimately depends on your needs and the associated benefits, whether you choose private or public child investment plans.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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Research Analyst - Bavadharini KS