With inflation soaring at an alarming rate, it is imperative to start planning for one's financial responsibilities that are likely to fall in place in future course of time. The tenet holds relevant for parents or parents-to-be to plan for future events in their child's life such as education, marriage etc. To help parents on the look-out for the best child insurance deal an effort is made to diligently put forth some of the best available child insurance plans. Here are a few that are on offer.
Can be considered for investment
This ULIP policy by SBI Life aims at securing child future by providing market-linked returns coupled with insurance. Death benefit in case of death of the assured provides for waiver of the premium amount and basic sum assured (S.A) is paid-off to the nominee. Accidental benefit including accidental death benefit and accidental permanent disability (TPD) is in-built in the plan and provided with no additional cost. Loyalty additions for holding the policy are provided by way of free allocation of units.
With multitude investment options via 9 varied funds, the policy tends to increase average returns of the investor. The increased return would better offset ever-increasing inflation rate and assist in funding the increasing cost of education of the child. The liquidity option is provided through partial withdrawal route.
A Safe bet
The endowment regular premium conventional plan by ICICI serves to address the need for finance for child's education. The plan is available at a minimum premium price of Rs. 8400 payable yearly. In the event of death of the assured (parent), the policy continues to run as the company contributes towards the same up til the maturity. Additionally, the company also pays some specified amount as development allowance every year.
The flexi-plan enables policyholders to avail benefits as per their requirement; during certain regular intervals or towards the end of the policy term for funding their child's higher education and other social commitments. Plan also provides additional protection against disability and accident at an extra cost. SmartKid R Premium also features an income benefit rider that provides the nominee with 10% of the S.A value under the rider annually in case of death of the assured.
With-profit conventional policy providing benefits at pre-specified interval and also towards the end of the policy term
This child policy offering by LIC is a with-profit policy that provides benefits at pre-ascertained times irrespective of the survival status of the policyholder. In the unfortunate event of death of the life assured during the term of the policy, this policy pays the basic sum assured amount on an immediate basis. Certain assured benefits at the end of the term of the policy i.e. some percentage amount of S.A value + bonuses provides financial assistance for planning for child's higher education.
Also, in case the premium is paid for initial 3 years only and thereafter the premium is left unpaid the policy does not lapses. However, the sum assured value gets reduced to paid-up value. The policy also includes riders for critical illness and term insurance which the policy holders can opt for depending on their need.
Medical as well as health cover at low premium cost
Provides medical as well as accident cover to students. The policy also enables continuation of the child's education in case ofdeath or permanent disability of the guardian. Medical cover for the student is provided in case of hospitalization on account of some ailment of accident.
The company provides claim to the extent of amount incurred during medical procedure, including boarding, doctor's consultation fee, operation theater and other charges for the use of different medical equipment. For every claim-free year, sum assured shall increase at a progressive rate of 5%. In case of any injury to the insured only on account of accident, the policy pays an amount set-forth. Also, there are other instances in which the company pays out the sum insured.
Good child plan for investment
This conventional child plan by LIC could be opted by parents with children aged under 17 years. With single and regular premium modes, the policy operates such that child's need are met irrespective of the survival status of the insured. The policy provides risk cover to the parent and child remains the nominee. The minimum cover for the policy is Rs. 1 lakh, however there is no cap on the maximum cover. The term for the policy is decided basis the age of the child at maturity of the policy term.
The policy provides nominee with sum equivalent to basic S.A value in the event of death of the insured. Additionally, the nominee is also entitled to receive 10% of the S. A every year till the entire term of the policy. In case, child or nominee of the policy dies, life assured has an option to now nominate another child or heir to continue with the policy. Loyalty additions are also paid as part of the policy on the maturity. Critical illness and accidental riders are also available at an additional cost.