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Child Money Back Plan: Secure Your Child’s Future

Planning for a child’s future is one of the most important things parents do. A Child Money Back Plan is a helpful way to make sure your child has the financial support they need as they grow up. Read More


This plan allows parents to save money gradually, and in return, it provides financial benefits at various stages of the child’s life, such as during school or college. With extra benefits like bonuses and tax savings, a Child Money Back Plan is a simple and safe step towards building a bright and secure future for your child. Read Less

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What is a Child Money Back Plan?

A Child Money Back Plan is a type of life insurance product specifically designed for children. It helps parents save money for significant events in a child’s life. The plan gives money back in small parts during the policy period. These small payouts can be used to meet growing expenses or saved for later. At the end of the plan, a lump sum amount is given, which can help fund your child’s higher education or other goals. This plan also offers life cover, which means if something happens to the parent, the family still gets the money to support the child. It’s a simple way to protect your child’s future while also getting regular returns over time.

How Does a Child Money Back Policy Work?

A Child Money Back Policy works like a savings and protection plan in one. You pay a regular premium to the insurance company. In return, they provide life cover and also pay back money at regular intervals during the policy term.


Here’s how it works:


  1. Premium Payment


    You can choose to pay the premium monthly, quarterly, half-yearly, or yearly. This depends on your comfort. The plan starts once you make the first payment.


  2. Regular Payouts


    The plan gives you money at regular stages—for example, in the 5th, 9th, and 13th year.. You can use this money for school fees, coaching classes, or any child-related expense.


  3. Maturity Benefit


    At the end of the policy term, you get a lump sum amount. This money can be used for your child’s college education or any other goal.


  4. Life Cover


    If the parent (life assured) passes away during the policy period, the child or family gets a death benefit.


  5. Bonus Additions


    Some plans offer extra bonuses (if declared). These are small additions that grow your savings even more.


Features of a Child Money Back Policy

A Child Money Back Policy consists of features that enable you to save money while also protecting your child’s future. Your policy pays back money at set intervals, provides life insurance coverage, and additionally provides supplements such as bonuses (if declared) . These features allow the plan to provide ease and help for families that want to build savings and be financially prepared for key milestones in their child’s future. Now let’s look at the major features of this plan:


  • Regular payouts during the policy term
  • Life insurance coverage to protect the child’s future
  • Flexible payment options (monthly, half-yearly, quarterly, yearly)
  • Bonuses (if declared)
  • Tax benefits under Section 80C (available only under the old tax regime) and 10(10D)
  • Suitable for all income groups due to payment flexibility
  • Guaranteed* maturity benefit at the end of the policy

Guaranteed* Payouts


A significant positive aspect of the Child Money Back Policy is the guaranteed* payout you will get during the plan duration. Payments come in time intervals at fixed times to help you manage expenses such as school fees, tuition etc. .


Insurance Coverage


Here are the insurance cover benefits included in a Child Money Back Plan:


  • The plan gives life insurance cover for the parent (life assured).
  • If the parent dies during the policy term, the nominee (usually the child or guardian) gets the death benefit.
  • The death benefit during the policy term will always be at least 105% of the total premiums you have paid, plus any bonuses (if declared) , subject to terms and conditions to the policy.
  • This benefit helps the family handle expenses in case something happens to the earning parent.
  • The amount can be given in one go (lump sum) or as monthly payouts, based on what you choose.
  • It acts as a safety net for your child in your absence.
  • Some policies also continue the plan and future premiums are waived off after the parent’s death.

Benefits of Child Money Back Plans

Child Money Back Plans offer several benefits that help you manage your child’s future needs with ease. The plan provides financial support through regular payouts, insurance protection, and savings. These benefits make it easier for parents to plan for their child’s education, hobbies, and emergencies. Some of the key benefits include:


  • Tax savings on premiums and maturity
  • Life cover for parents
  • Extra money through bonuses (if declared)
  • Flexibility in paying premiums
  • Option to add extra cover through riders

Tax Benefits


Here are the tax benefits of a Child Money Back Plan:


  • Premiums paid are eligible for tax deduction under Section 80C (available only under the old tax regime) of the Income Tax Act
  • The maturity amount and death benefit are usually tax-free under Section 10(10D).
  • These tax benefits help you save more money each year.
  • You can use this saved money to meet other expenses further.

Parent’s Life Cover


A child's Money Back policy gives life cover to the parent:


  • In case the parent passes away, the child gets a death benefit.
  • It helps the family handle daily expenses and the child’s future goals.
  • Some plans also waive off future premiums after a parent's death.

Bonus Additions


Bonus (if declared) adds extra value to your savings:


  • Some Child Money Back Plans give yearly bonuses.
  • These are added to your policy and increase the total payout.
  • Bonuses are based on the insurer’s performance.
  • This helps in building a bigger savings amount over time.

Flexible Payments


Flexible payment options assist you in budgeting:


  • The options are monthly, quarterly, semi-annually, or yearly.
  • This works great for people who earn income differently, especially business owners.
  • The flexibility allows you to manage payments without worrying.

Rider Options


Riders give you additional protection for a minimal cost:


  • You can add riders, like accidental death benefit rider , critical illness benefit rider , and waiver of premium rider .
  • These riders give added benefits.
  • They are available at additional nominal premiums..
  • It adds an added protection layer for the base plan.

How to Choose the Best Money Back Policy?

Picking the right Child Money Back Plan is important to secure your child’s future. Look for a plan that offers timely payouts, enough coverage, and fits your budget. Check if it matches your financial goals. Here are a few things to look for:


  • Understand your child’s future financial needs.
  • Choose a plan that offers payouts when you need them.
  • Check the insurer’s claim settlement ratio.

Financial Needs


Before buying a policy, think about your financial goals:


  • At what age will your child need the money for school or college?
  • How much money can you set aside each month or year?
  • What kind of returns do you expect from the plan?
  • Choose the sum assured and policy term based on these needs.

Plan to Align With Your Needs


Your plan should support your child’s key milestones:


  • Pick a plan where the payouts match your timeline (like school or college years).
  • When planning for a said amount at maturity to for your child’s future milestones or goals, factor in inflation, rising education costs, etc. to ensure the amount is sufficient to meet your child’s future goals.

Insurance Provider’s Reputation


Choose a trusted insurance provider:


  • Check the company’s claim settlement ratio—higher is better.
  • Look for reviews or testimonials from customers.

A strong company ensures smooth claim and payout processes.


How Child Money Back Plans Can Help You Secure Your Child’s Education Fund

Education costs are rising every year. A Child Money Back Plan offers payouts at different stages that can be used for school fees, coaching, or college admissions. Here's how it helps:


  • Get money at important stages like age 10, 14, or 18 for school/college fees.
  • Use payouts to build extra income.
  • While a child money back plans can facilitate cash flow, opting for additional plans like ULIP that offer a lumpsum corpus at maturity can also be useful for future goals like higher education.

Conclusion

A Child Money Back Plan is a smart way to build savings for your child and protect them from future financial worries. The plan gives you regular payouts, tax benefits, and life insurance coverage for the parent. It also helps fund your child’s dreams, like school or college, without stress. The bonus and rider options add more value and flexibility. If you want to grow your money safely and take care of your child’s future at every step, a Child Money Back Plan can be a helpful choice.

Frequently Asked Questions

1. What is a child money back plan?

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A child Money Back plan is a life insurance policy that provides regular payouts at fixed intervals and a lump sum at maturity. It helps parents manage important expenses, such as school fees and higher education costs. The plan also offers life cover, ensuring financial support to the child in case of the parent’s untimely demise. These features make it suitable for long-term financial planning and help in securing a child’s future needs at different life stages.

2. Is it good to invest in a child money back plan?

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A child money back plan helps you save money for your child’s future needs, like school, college, or marriage. It gives money at regular times, includes life insurance for the parent, and also gives tax benefits. This means your child will have financial support, even if something happens to you. Child plans help you save step by step and prepare for future expenses. They also give you some extra benefits and choices, making them a smart option for many families.

3. What is the maturity of the Money Back plan?

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Maturity of a Money Back plan means the final big payment you get at the end of the policy. It includes the leftover amount promised and any extra money (bonuses, if declared) added over time. It is meant to meet long-term objectives, such as your child's higher education or marriage. The maturity benefit is payable only in the event the life assured  survives the policy tenure and premiums are paid and complied with in accordance with the terms of the policy.

4. Which child insurance plan is best?

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The best child plan is dependent on your financial goals, income, and the needs of your child. Select the plan offering guaranteed* payouts, life cover, tax benefits, and bonus (if declared) additions. Plans permitting flexible premium payment should be a preference, along with the insurer’s reputation. You should always compare features, including payout structure, maturity benefits, and the claim settlement ratio of the insurer, before selecting the best plan for your family.

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At Bajaj Allianz Life, we are here to support you in building a secure and worry-free financial future. With over 24 years of experience, we provide a variety of life insurance plans, including protection, retirement, savings, investment and health, to meet your unique needs.

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IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year.

ULIPs are different from the traditional insurance products and are subject to the risk factors. The premium paid in ULIPs are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

 The views stated in this article are not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions. For more details on risk factors, terms and conditions please read the sales brochure & policy document (available on www.bajajallianzlife.com) carefully before concluding a sale. Bajaj Allianz Life Insurance Company Ltd., Regd. office Address: Bajaj Allianz House, Airport Road, Yerawada, Pune - 411006, Reg. No.: 116, CIN: U66010PN2001PLC015959, Call us on toll free No.: 1800 209 7272, Mail us: customercare@bajajallianz.co.in

 

Tax benefits as per prevailing Section 10(10D) and Section 80C (under old tax regime) of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

 

*Conditions Apply – The Guaranteed benefits are dependent on policy term, premium payment term availed along with other variable factors. For more details please refer to sales brochure.

 

BJAZ-WEB-EC-15863/25

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Bajaj Allianz Life Assured Wealth Goal - A Non linked, Non Participating, Individual, Life Insurance Savings Plan (UIN: 116N170V12)

* Conditions Apply – The Guaranteed benefits are dependent on policy term, premium payment term availed along with other variable factors. For more details please refer to sales brochure.

2 Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

^ Product feature/ benefit mentioned above are dependent on variant chosen.

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

 

Please refer to BALIC Privacy Policy

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Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V04)

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116


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^Subject to Section 10 (10D) conditions i.e. aggregate annual premium for ULIP policies issued on or after 1st February 2021 does not exceed Rs. 2.5 Lakhs.

1Minimum premium mentioned is applicable for Bajaj Allianz Life Goal Assure IV - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L204V01) and is subject to policy terms and conditions.

#Source: https://economictimes.indiatimes.com/investments-marts/eight-crucial-numbers-to-ensure-financial-success/10-times-the-annual-income-is-your-life-insurance/slideshow/16699748.cms . Subject to availability in Bajaj Allianz Life ULIP Plans. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com ) carefully before concluding a sale.

*Benchmark: Nifty 500 Multicap Momentum Quality 50 Index past 5 CAGR Returns, as on 31st December 2024. Past returns of a fund are not necessarily indicative of the future performance of the fund. | Please consult the financial advisor before investing.

The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year.

ULIPs are different from the traditional insurance products and are subject to the risk factors. The premium paid in ULIPs are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Bajaj Allianz Life Insurance Company Limited is only the name of the Life Insurance Company and Bajaj Allianz Life Future Wealth Gain IV - A Unit- linked Non- Participating Individual Life Savings Insurance Plan (UIN:116L202V01), Bajaj Allianz Life Goal Assure IV - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L204V01), Bajaj Allianz Life LongLife Goal III is A Unit-linked Non-Participating Whole Life Insurance Plan (UIN:116L203V01), Bajaj Allianz Life Invest Protect Goal III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L205V01), Bajaj Allianz Life Magnum Fortune Plus III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L207V01), Bajaj Allianz Life Goal Based Saving III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN:116L206V01) and Bajaj Allianz Life Smart Wealth Goal V - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L201V01) are only the name of the unit linked insurance contracts and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com ) carefully before concluding a sale.

Nifty 500 Multicap Momentum Quality 50 Index Fund is available Bajaj Allianz Life Future Wealth Gain IV - A Unit- linked Non- Participating Individual Life Savings Insurance Plan (UIN:116L202V01), Bajaj Allianz Life Goal Assure IV - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L204V01), Bajaj Allianz Life LongLife Goal III is A Unit-linked Non-Participating Whole Life Insurance Plan (UIN:116L203V01), Bajaj Allianz Life Invest Protect Goal III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L205V01), Bajaj Allianz Life Magnum Fortune Plus III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L207V01), Bajaj Allianz Life Goal Based Saving III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN:116L206V01) and Bajaj Allianz Life Smart Wealth Goal V - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L201V01)

In addition to the already existing funds, Nifty 500 Multicap Momentum Quality 50 Index Fund is now available with the above mentioned products. Customer has an option to choose from other available funds apart from Nifty 500 Multicap Momentum Quality 50 Index Fund.

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Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any Call made, including via Voice over Internet Protocol & WhatsApp, SMS or WhatsApp messages, in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

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Disclaimer

The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year.

ULIPs are different from the traditional insurance products and are subject to the risk factors. The premium paid in ULIPs are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Bajaj Allianz Life Insurance Company Limited is only the name of the Life Insurance Company and  Bajaj Allianz Life Goal Assure IV - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L204V01) is only the name of the unit linked insurance contracts and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. 

$Subject to Section 10 (10D) conditions i.e. aggregate annual premium for ULIP policies issued on or after 1st February 2021 does not exceed Rs. 2.5 Lakhs.

2Source: https://economictimes.indiatimes.com/investments-marts/eight-crucial-numbers-to-ensure-financial-success/10-times-the-annual-income-is-your-life-insurance/slideshow/16699748.cms. Subject to availability in Bajaj Allianz Life ULIP Plans. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com ) carefully before concluding a sale.

1Minimum premium mentioned is applicable for Bajaj Allianz Life Goal Assure IV - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L204V01) and is subject to policy terms and conditions.

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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