Claim Settlement Ratio of 99.23%~

Safeguard Your Child's Financial Future With A Child life Insurance Plan

Parenthood is, without any doubt, one of the surreal experiences that one could ask for. The moment you look at the infant for the very first time, there is a sense of love, warmth, and the urge to plan for the child’s future. Since they take centre stage in your life after their arrival, it only makes sense for you to provide them with everything possible. You can provide them with a secure financial future by buying a child plan.

Investment plans also act as tax-planning tools, as many avenues help reduce tax liability. There are different types of investment plans, and by choosing the right one, you can invest according to your needs and grow your savings.Read Less

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Written ByPalak Bagadia
AboutPalak Bagadia
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Palak Bagadia, Associate – Digital Marketing at Bajaj Allianz Life, with experience spanning content and performance marketing, recruitment, employee engagement in the BFSI industry.
Reviewed ByRituraj Singh
AboutRituraj Singh
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Rituraj Singh,With over 6.5 years of experience in the insurance industry, Rituraj Singh, Manager- Product & Brand Marketing at Bajaj Allianz Life Insurance overlooks new product launches, compliance, and brand projects, leveraging artificial intelligence and technology to enhance outcomes.
Written on: 7th July 2024
Modified on: 7th July 2024
Reading Time: 15 Mins
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It is always preferred to plan well in advance. You may consider buying them a plan that will take care of their financial security even when you are not around. This might be a suitable gift you may consider buying for your children.

What is a Child Plan?

Raising a child may sometimes be financially challenging if you do not take the required steps at the right time. For example, the cost of education from a preferred institute may cost you in lakhs in the current scenario.

To make your life a bit easier, you can take the help of a child education plan calculator. The sole purpose of a child education plan calculator is to help you deduce the total expenses of education in the future for your child.

There are several online tools available where you need to enter some basic information, and the tool will provide you with the estimated details regarding corpus needed for the same.

This is where a child's plan can help. Simply put, a child plan is made exclusively for the future of your children so that their future financial needs are well taken care of even in your absence. The plan usually consists of investment and insurance as the two components.

The investment component of a Child Plan invests your money in various instruments, thereby ensuring that your child has a corpus to rely on for higher education or marriage or other expenses. On the other hand, the insurance component helps in the case of the demise of the parents. Children will receive a fixed payment to cope with various expenses.

Some insurance providers offer ULIP-based child plans which provide the feature of premium waiver in the absence of the parent. This feature ensures that the corpus continues to build even after the death of a parent and help to create a secure corpus for a child’s financial future.

How does a child insurance plan benefit your child?

Investing in a child insurance plan offers financial benefits for your children, both in the present and in the future. Some of the major benefits of investing in the plan are as follows.

1. Cover for Education

It is no secret that the rising cost of education is a concern for a lot of parents. Education in schools in Tier 1 or Tier 2 cities might cost you around Rs.1.25 to Rs. 1.75lakhs per year for primary education2. The cost will go up for higher education. Investing in a child insurance plan will help you secure funds for your higher education.

2. Cover For Health

A few child plans offer health coverage as well.. Investing early will ensure that your children have adequate coverage for any medical needs.

3. Cover After Death Of Parent

One of the features of a child plan is the continuation of the benefits in the absence of a parent. Upon the untimely death of the parent(s), the insurance company may waive the future premiums of the policy, depending on the policy terms and conditions. In other words, your children will continue to receive the benefits of the plan.

Conclusion

Life is uncertain. However, careful planning and execution might ensure that some of these occurrences do not impact the financial well-being and future of your children. Investing in a child insurance plan may be one such step. The plan will help you build a corpus for the future while offering some of the other benefits as well as mentioned above.

Sources:

1. https://www.policybazaar.com/child-plans/articles/premium-waiver-benefit/

2. https://www.ndtv.com/business/what-does-it-cost-to-educate-a-child-in-india-and-how-to-plan-for-it-3272408

BJAZ-WEB-EC-01749/22

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~Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility.

The above information is for general understanding and is meant to educate the general public at large. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information.

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.

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*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.

~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


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%%Above illustration is for Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V03) considering Male aged 25 years | Non-Smoker | Policy Term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 6,238. 2nd Year onwards premium is Rs. 6,659. Total Premium Paid is Rs. 1,99,349 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly installments (Lumpsum Payout Percentage : 45, Income Payout Percentage : 55) | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. This is inclusive of all the discounts mentioned above.

##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%.

@Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

^^The Return of Premium amount is total of all the premiums received, exclusive of extra premium, rider premium and GST & /any other applicable tax levied, subject to changes in tax laws
Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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