How to Choose Best Child Plan in India

1. How To Choose Best Child Plan In India ?

2. There are two types of Child policies in India- Child ULIPs & Child Endowment Plan. The plan you should select is usually dependent on the amount of coverage you want and the tenure of the policy. For instance, if your child is 4 years old and you plan to provide him higher studies after say, 15 years which costs Rs. 20 lakh today, then you can imagine how much would it cost after 15 years. Therefore, it becomes necessary to invest for your child today in order to have funds available at the time when the actual need arise.

3. Advantages of Child Insurance Plans There are many benefits that you will get after buying a plan. Mentioned below are the major benefits that you will get along with a best plan. Flexibility to choose: Basically life insurance for children provides you the flexibility to choose according to your economic status and superficial monetary goals. The rate of premium can also be settled as per your interest. Maturity Benefit: At the time of maturity, the sum assured amount and a definite partaking sum will be paid to the parent or guardian. In the case of early death of the policy holder, the child is allowed to receive all the benefits of the plan (if the rider is attached to the policy). Tax benefit: Yes, it is true that a child policy in India provides tax benefit that can be availed on maturity/death claim profits under Section 10 (10D) and assumption from income for the expenses of premium under Sec. 80(C).

4. Importance of Child Plans: Security: Ensures your child's future needs and allows you to plan in a better way to stabilize your future financially. Multiple needs fulfilled: All future needs of your child whether its education, marriage, or business are covered and looked after Liquidity: You have the provision of liquidizing your plan through partial withdrawals Tax Exemption: You get tax deduction for the premium you pay under Section 80C and any income from the plan is tax-free under Section 10 (10) D of the Income Tax Act Riders: You can buy the riders like accidental death benefit, income benefit and critical illness benefit.

5. Tips To Consider While Buying Child Insurance Plan: It is advisable for you to calculate the required funds for your child education and marriage before going to buy coverage for children. With this additional information, you would be able to choose the best cover and can decide easily on the related premium amount and the time period of the child life plan. In some products you will get additional benefits such as accident cover, health, etc. You must compare child policies of different insurance companies on our site because with it, you can compare the premium amount per year and the returns presented by different companies. Make sure to insure your life also. It is beneficial to buy a plan which has a built in clause premium waiver for future. This would guarantee that the plan continues if you are not there to take care of it and your child would be able to receive assured sum amount at maturity.

6. It is advisable for you to check the company's record before purchasing child insurance. Buy the plan in the parent's name instead of a child, since the child anyway has no dependants. But if you are planning to buy the best one in the child's name, then ensure that it has a built-in feature of premium waiver in case of death of the parent. This will protect your child from the burden of heavy premium payments and he will continue to reap the benefits of the plan. Also do a check out the tax benefits of the plan.It is an incredible financial investment planning tool for child education / marriage / unforeseen expenses etc. It assists in meeting the child's monetary needs and provides safety in the form of a life insurance plan.

7. Child Plans and Riders For a great future of your ward, you must buy the best child plan. By comparing service and free quotes, you will get the best and affordable child plan that meets your requirements easily. An online policy is a good option, it will assist you in comparing different plans of the top companies. It is worthwhile to look for best plan with riders and related features which make your plan more useful and effective. Riders provide additional benefits at low premiums. Some companies are offering riders as a part of the policy, whereas in few companies it is optional. Riders provide a more secure and financially stable life to your ward. It is advisable to select a rider, according to your requirements. Don't think about the extra premium that you are paying for riders, consider the benefits that you will get and make your policy more powerful.

8. Documents Required For Child Insurance Plans: Age Proof Birth Certificate, 10th or 12th mark sheet, Driving License, Passport, Voter ID, etc. (Any One) Identity Proof Driving License, Passport, Voter ID, PAN Card, Aadhar Card Address Proof Electricity Bill, Telephone Bill, Ration Card, Driving License, Passport, should clearly mention the permanent address. Income Proof Income proof specifying the income of the person buying the insurance Proposal Form Duly filled in proposal form is required

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