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An ultimate guide for all the insurance seekers, to make smart decisions by accessing the articles based on insurance. Grab as much information as you can about insurance products, plans, coverage, and exclusion here !!
13-Oct-2022
As a parent, you certainly want better education, health, financial stability & a good life for your children; And all of these aspirations require financial backing to execute them into reality. Every parent wants the life of their children to be financially secure, to mitigate any future harm due to financial stringency. A better financial plan for your child can reduce more pecuniary instabilities and future predicaments in your child's life.
From primary to higher education, career settlement, maintaining good health, traveling abroad, expenses included in unexpected incidents, and extra expenses involved in other activities, all require a pretty heavy financial backing that fulfills every need of our child even in the absence of the parents. Investing in such an insurance plan is like making an investment to secure the future of your child and make them financially independent.
Insurance for a child offers all the benefits of lump sum payouts over the completion of the policy and a waiver in the income tax during a premium paid in the policy tenure.
Some Salient Features of Child Insurance Policy
A Child Insurance plan offers more benefits with respect to the exemption in tax, maturity benefit, partial withdrawal of the policy, and death of the policyholder. Let us discuss all these important features one by one.
Tax Benefits
Child insurance plans get similar benefits to life insurance plans in taxation. You would get a concession in tax while making an investment in premiums. The tax on your premium amount paid will be exempted under the 80C of the Income Tax Act, 1961.
Also, the maturity benefit payouts will be exempted from the income tax under section 10(10D).
Partial Withdrawal of the Policy
In case your child has some medical conditions and he/she is admitted to the hospital and you need financial backing; In that case, you can discontinue the plan and apply for a lump sum amount of the plan that you have paid up to that date. You can also avail of the facility of periodic payouts as a regular income for your medical expenses. This same can also be carried out in other cases like withdrawal of policy for pursuing higher education.
Availability of Premium Waiver
It is a notable feature of the child insurance plan which comes with an in-built benefit on premiums to be paid for the policy when the policyholder or parent dies. It reduces the burden of paying a premium in continuation of the policy after the death of the parents. Many insurance companies pay the remaining premiums to complete the policy tenure on their behalf. At maturity, a child would get the complete sum assured of the policy.
Buy A Child Insurance Plan With Policy.Online
Policy.Online offers various child insurance plans from top insurance companies of India which are authorized by the Insurance Regulatory and Development Authority of India (IRDAI). You can easily compare plans from different insurers and select the most preferable policy according to your needs and expectations. Policy.Online provides a trustworthy platform to buy insurance plans for your child with a completely transparent process.
Benefits associated with Child Insurance Policy
1. Create A Wealth Corpus For Your Child
The child insurance plan offers all-in-one benefits to your child even in your absence. They can easily strive in and fulfill all ambitions of their life. Financial insecurity will not be an issue for them and they will get all financial in-dependencies in the future. But the amount of the total sum assured will be dependent on premium payment and tenure of a policy.
2. Similar To Savings Fund
A child insurance plan acts as a savings fund that will be provided to the beneficiaries at the maturity of the policy. The lump sum of the plan will be credited to the beneficiary account to fulfill various requirements such as funds for higher education, marriage, abroad travelling expenses, etc.
3. Secure Your Child's Education
It also accomplishes the expenses of higher education if your child will take admitted to any reputed college and will have to pay a huge amount of fees. It provides flexibility to fulfill your child's financial needs during pursuing their education. Now, it is easy to secure the education of your child with a child insurance policy.
