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What is Child Insurance, types and benefits in Investing in Child Insurance


Child insurance plans provide the dual benefits of insurance as well as investment.

This helps the policyholder to secure their child’s future and at the same time also build a corpus to help meet the major milestonesof your child.

Regular increase in the cost of education in India increase the necessity of every parent to avail a child insurance policy.

So, here we discuss some of the important points that everyone should know before availing a child insurance.

What are the different types of child Insurance plans that are available?

There are generally two types of plans available in market.One is unit linked investment plans (ULIP) which invests in market to help your funds grow.

Another one is child endowment plans which offers fixed guaranteed returns.

What are the benefits in investing child Insurance?

Some of these plans allow partial withdrawal so you can use your money in term of emergency.

These plans also ensure financial stability of the child in the unfortunate absence of the parent.

These can also be used as a collateral for loan for child related borrowings.

What are the choices of pay out ?

There are generally two types of payout options .

Lump sump which pays you a major amount to fulfill major goals.

Regular layouts to ensure your child’s day to day needs. 

Basic things that you keep in mind before availing a child insurance policy ?


Choose a plan according to the needs of your child.

Keepin mind the amount you needed for his/her higher education and other goals.

Understand all the risks that are associated with the policy.

Check whether the plan offers you a waiver of premium option in case of policyholder’s demise.

Written By – Deepak Kumar 

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