Best Children Insurance Plans in India

Best Children Insurance Plans in IndiaBest Children Insurance Plans in India

Last week, there was a comment from Mahalakshmi Gopalan on this blog on “Suggest a topic” to write about Best Child Insurance Plans in India. Generally, I do not like to write any articles on this topic. Parents would like to secure their child's future for education or marriage, hence may need regular corpus during their college or during marriage. Which is the best child insurance plan in India? Which is the Popular Children Insurance Plan that has some good features in India?

Do we need to take Child Insurance Plans?

With the world full of uncertainties, today’s biggest worry of the parents is what would happen to their kids in case of untimely demise and especially the earning parent. The only way out of this problem is life insurance cover of considerable size. Witnessing the hardships of the world, where expenses are escalating and means are getting limited, it has become the need of the hour to build a sufficient fund for the kids’ future.

Also Read: Top Children Investment Plans to invest in India

A child insurance plan is probably the best solution to it. These plans offer a lump-sum payment on the death of the policyholder and the policy does not end here. The future premiums are waived and this money is further invested on behalf of the policy holder. The child keeps on receiving money at the regular intervals as decided under the terms of the policy. This way, the needs of your child are taken care of even when you are not around him. Normal term plans also offers the payment of lump sum amount, but the policy ends there only. Your future needs don't take care of.

The premium paid under child life insurance plan is eligible for deduction under Sec. 80C and any income received under the plan is exempt from tax under Sec. 10(10D).

Best Children Insurance Plans in India

Almost all the insurance companies offer the child insurance plans and additional benefits are provided to attract the customers. Here are some of the popular Child Insurance Plans in India.

1) LIC New Children Money Back Policy

Best Children Insurance plan in India - lic new money back planIt is a non linked, with-profit regular premium payment plan that provides risk cover to the insured child also. It has the benefits of both savings and protection. It is designed, intended to meet the education, marriage and other needs of the growing child. The highlighting points of the policy are

The minimum sum assured is Rs 1,00,000 and there is no upper limit.

The entry age of the life assured is 0 to 12 years.

The policy term or the premium paying term is 25 years.

In case of death of the life assured before the date of commencement of risk, then the premium will be returned excluding the extra premium, taxes and rider premium, if any.

In case of death of life assured before the commencement of risk, the benefits would be sum assured including revisionary bonuses and final additional bonus.

If the life assured have survived till the stipulated date of maturity, he shall be paid the sum assured on maturity, i.e. 40% of the basic sum assured along with  simple revisionary bonus and final additional bonus (if any).

Loan facility is also available under this plan.

The policy shall participate in the profits of the company and will offer simple revisionary.

You can read complete review of this insurance plan here

2) LIC Child Carrier Plan

lic child career plan-Best Child Insurance plan in IndiaIt is a money back endowment plan designed to cater the ever increasing needs of the growing kids. In this plan, the sum assured together with bonus is directly given to the nominee on the death of the life insured after the commencement of risk. It provides risk cover of a child not only during the term of policy, but also the extended period of 7 years after the expiry of policy term. When the policy matures, the kid would receive the remaining 15% of the sum assured along with final additional bonus (if any).

The insurer can insure a sum between the range of Rs.100,000 to Rs. 1 Crore.

The entry age for life assured is 0 to 12 years.

The minimum or maximum maturity age for life assured is 23-25 years.

The policy term or the premium paying term is 11-27 years.

A premium waiver benefit is provided to the proposer if he is between the age of 18 to 55 years and is medically fit.

The policy can be surrendered if the premium has been paid for three full years.

The guaranteed surrender value before the commencement of risk is 90% of the total premiums paid excluding the premium of first year.

The guaranteed surrender value after the commencement of risks is 90% of the total premium paid (excluding the first year) before the commencement of risk and 30% of the premium after the commencement of the risk.

Also Read: How should you plan for your children education?

3) PNB MetLife Smart Child

pnb metlife child plan-Top Children Insurance plan in IndiaThe minimum annual premium is Rs 18,000.

The maximum annual premium varies within the range of Rs. 1 lakh to Rs. 2 lakh, according to the age.

The entry age of the life assured is 18 to 55 years.

The sum assured is 10 times the chosen annualized premiums only.

The policy term or the premium term is 10, 15 or 20 years.

The minimum or maximum maturity age for life assured is 23 to 25 years.

At the end of the policy term, the beneficiary will get the fund value along with loyalty additions (if any).

In case of sudden demise, the nominee will get the higher of sum assured or 105% of the total regular premium paid.

Future premium payments will be stopped. Moreover, the company will credit an amount equal to one regularized regular premium as a part of Premium Waiver Benefit (PWB) into policyholder’s account on a monthly basis.

Conclusion:  I am not saying these are good child investment plans. These plans have some good features which can be considered. If you are a low risk taker and does not believe in equity or mutual funds, you can go for some of these popular child insurance plans in India. One should note that these plans would give anywhere between 5% to 7% annualized returns along with risk coverage.

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Best Children Insurance Plans in India

Suresh KP


    1. Hello Raj, I would advice you to take a term plan on your name + invest balance in a equity mutual fund. Alternatively if you don’t want to invest in mutual funds, you can consider any of the child insurance plans indicated here. Note these would come with low returns of 4% to 5%

  1. Talking about a child insurance plan and investment component, this helps me to build the substantial fund where I can accumulate good amount money and meet necessary expenses in the future like travelling overseas for the higher education, and paying fees for the university, marriage and setting up his business. So, for all this I need a good child insurance plan.

  2. Mr. Suresh
    I have small doubt if parents taken insurance and anything happened means also nominee like child Will receive corpus so why necessary child plan instead parents normal plan ?

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