For every parent, their child is very special. To fulfill their dreams and aspiration, they just can’t stop finding the best options and solutions for their child needs. Primary education, Higher education, marriage, extra spends and more are all part of responsibilities for your child.

HERE, child insurance plan comes into picture

CHILD insurance plans help you plan your child ‘s career and future milestones in a structured manner. These plans take care of your child’s dream in the event after you pass on.

why should I buy children policies?

– The plan enables you to save systematically until your child turns 17 years for his/her graduation or post-graduation college fees

  • It offers you three options to receive Guaranteed payouts depending on your child’s education milestones so that you receive the money when it is actually needed
  • Your child’s education is secured even in case of an unfortunate event in your life
  • You can further strengthen your plan by opting for riders which covers you against an accidental death and/or accidental total and permanent disability
  • You are eligible for Tax benefits as per prevailing tax laws

What are the benefits of children policies?

1-Maturity Benefit:

you can be in complete control of your child’s higher education by receiving guaranteed payouts. These payouts are designed in such a way that you are sure to use it only for payment of admission or tuition fees. Moreover, you have the flexibility to choose between the different options, for your clarity we have illustrated different options which is as same as the companies provide you.

Let us understand your benefits with the help of an example

Rajnikanth is 30 years old and the father of a 1-year-old, Aryan. As per his financial plan, he needs to get  20 lakhs to fund Aryan’s tuition fees through yearly payouts.

  • He can choose to receive the maturity benefits as yearly payouts either as per Option A, B or C.
  • The Policy Term and Premium Payment Term is 16 years as Aryan is 1 year old at beginning of the policy
  • When Aryan turns 17 years, Rajnikanth will start receiving the guaranteed payouts.
  • The company has options A, B or C, to receive these payouts as per raj child’s education milestones

Rajnikanth has the option to receive this as under

Now, let’s know more about the available options.

2-Death benefit

Uninterrupted protection for your child’s education

This plan ensures that your child’s education would not suffer in case you are not around. In such an unfortunate event, the company makes sure  that  your child gets the following guaranteed benefits to help achieve all the education milestones you have planned for:

The company will :

  • Waive off all future premiums payable under the policy
  • Immediately pay guaranteed Death Sum Assured to ensure your family’s immediate needs are taken care off
  • Pay 5% of the Sum Assured immediately and on every death anniversary of the life assured till your child turns 17 years. This Guaranteed amount can be used to fund your child’s regular school fees.
  • Pay Maturity Benefit (100% of Sum Assured) as per your chosen option while purchasing the plan

Death Sum Assured shall be highest of the following:

  • 10 times annualized Premium(excluding taxes, rider premium and extra premiums, if any), or
  • 105% of total premiums paid (excluding taxes, rider premium and extra premiums, if any) as on date of death, or
  • Maturity Sum Assured, which is equal to the Sum Assured
  • Absolute amount payable on death, which is equal to the Sum Assured


Rajnikanth has purchased XXX COMPANY”S  Assured Education Plan and he opted for Option B. He meets with an accident which causes his untimely death within one year after purchasing the policy. The benefits paid out to Raj’s family will be as under:

Rajnikanth is 30 years old and his son Aryan is 1 year old. He opts for a Sum Assured OS RS 20 LAKHS

and payout as per option B.



ENTRY AGE:                               Age of the parent: 21-50 years

( Age mentioned refers            Age of the child: 0-10 years

to age as on last birthday)

Maturity Age:                            minimum: 35 years

(Age mentioned refers              maximum: 67 years

to age as on last birthday)

Policy term:                                17 years minus age of the child at the time of purchase

i.e Minimum of 7 years if the child’s age is 10 years to maximum of 17

years in case of a newborn child.

Premium Payment Term          Will be same as policy term                                                                                          Premium payable                                           minimum premium

Rs20000 annually OR


There is no maximum premium limit

Premium payment                      The premiums can be paid in annual or monthly modes only. Monthly

frequency                                      premiums can only be paid by Electronic Clearing System (ECS)

The Premiums for monthly mode is 8.83% of annual premium.

For payout different companies have different options.

let us consider payout option of the xxx company


You can strengthen your financial security by opting to purchase a suitable rider. A rider is an add-on insurance plan that provides you additional insurance cover along with your regular insurance plan by paying an additional nominal premium.










PREMIUMS PAYMENTS – Depending on your budget, choose a plan that will meet your child’s requirements easily

RISK COVERAGE – some child insurance plans give more risk coverage aspect. Kids today are highly interested in different activities like sports, dance, In Home Voice Lessons etc and as a parent, you would definitely be concerned for your kid’s protection. Policies with a good risk coverage would definitely have a high premium charge but the strong protection that it will provide will leave you tension- free

money back plans – In these child plans, policyholder has to pay the premium amount regularly and the insurer agrees to pay an assured sum of money  at the time of maturity of the plan .

Q-1 Why should I buy term life insurance?
Term insurance offers one of the most affordable ways to protect your family’s finances if something were to happen to you. It offers a death benefit and some plans even have permanent disability riders. Many insurance companies offer Term insurance for a period of 5, 10, 15, 20 and 30 years thus offering relatively long Term of coverage. You should choose a term that at least covers you for the earning years of your life, i.e. 58 – {your current age}.

Q-2 What are term life insurance disadvantages?
Although the premium of term insurance is very low at the younger age, once the policy term expires after the maximum duration, premiums increase as they are primarily age-related. Generally, the policy doesn’t offer cash value or paid-up insurance so nothing is paid to the insured if he survives the policy duration

Q-3 When is term life insurance the right choice?
If you wish to have a life insurance with good coverage without having to pay the large amount as premium, for a fixed duration, term insurance is an ideal option. It is most suitable to cover your fixed goals that may disappear over time.

Q-4 How much term life insurance do I need?
Your coverage need will depend on your individual circumstances. Factors you should consider include anticipated final expenses, living expenses for your surviving family members, any outstanding loans (e.g. auto and credit cards), the outstanding balance on your mortgage, anticipated education costs for your children, estate taxes, and business continuation expenses.

Q-5 What affects the premium rates of my term life insurance?

Ans-Factors affecting the premium of term life insurance are:
• Age of the insured – Life insurance premiums are age-linked. Younger the person lesser the premium. Life insurance premiums vary for different age brackets.
• Smokers or non-smokers – For many insurance companies, premiums are different for smokers and non-smokers. Smokers or tobacco users may have to pay higher premiums depending on the insurance company norms.
• Sex of the insured– term insurance for males will cost more than that for females for the same sum assured.
• Medical conditions – Medical condition of the person being insured is important and medical check-up compulsory for term life insurance. The premium may vary as per the individual medical condition.
• Dangerous hobbies – If you indulge in dangerous hobbies like parachute jumping, race car driving etc. you might either be declined insurance or may have to pay the higher premium based on the insurance company policy.

Q-6 Can the premium of my term insurance change?

ANS- Premium of a term insurance remains the same throughout the term of the policy provided all other factors remain the same.

Q-7 Is medical examination necessary for the term insurance?
ans-medical examination is necessary for all term insurance.

Q-8 Is my term life insurance policy convertible?
Many term life insurance policies are convertible to other traditional plans like endowment plans or money back plans etc. Convertible policies can generally be converted to permanent policies within a specified period of time from policy issue, without providing new evidence of insurability (unless you increase your benefits). It needs to be identified at the time of buying the policy for the convertibility feature.
Q-9 What is the Accidental Death Benefit rider?

ANS-The accidental death benefit rider is an optional policy provision where in event of death due to an accident, an additional amount is paid by the insurance company. This amount is over and above the basic sum insured that the beneficiary will get for your term insurance.

Q-10 What is the Waiver of Premium rider?
The waiver of premium rider is an optional provision that protects your life insurance policy to be cancelled even when you are not able to pay the premiums in event of your total disability. The payment of life insurance policy’s premium is waived off.

Q-11 What is a p re-medical exam and how do I schedule one?

ANS-To take the term life insurance, you need to undergo a medical examination called the pre-medical. A basic pre-medical exam includes the following:
• Height/weight measurements
• Blood pressure readings
• Heart rate readings
• Urine sample
• Blood sample
• Medical history questionnaire
After receiving your completed application form, the insurance company representative contacts you to arrange your exam at a time and location most convenient to you.

Q-12 can I take more than one term plan?
Yes, you can take more than one term insurance plan. It needs to be declared to the insurance companies regarding the same


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