4 Features of Child Insurance Plans in India 

All of us have varied life goals at different points in time; whilst some of these goals revolve around professional aspirations, others find their roots in personal milestones. One of the most significant personal goals is having a child. Not only is this a life-altering decision, but also one with substantial financial implications. The easiest way to ensure that you are prepared to meet the expenses associated with child care is to save in a child insurance plan. 

What is a Child Insurance Plan?

As its name suggests, a child insurance plan is an insurance product specifically designed for children. Child life insurance plans in India comprise a combination of insurance and saving. By choosing such a plan, you can have life insurance coverage for your child as well as a systematic and productive tool to create a fund for them.

Child life insurance plans are offered by life insurance companies. As one of the leading life insurance companies in the country, we at Tata AIA offer a wide array of savings insurance plans that can serve as the conduit for your financial planning for your child.

You can decide how much you wish to invest on a periodical basis as well as the frequency of the investment. This way, you can build a substantial corpus that can be pivotal to your child's education and overall financial stability. Such a plan can also serve as a contingency fund for your child.

The Salient Features of Our Savings Insurance Plans

Planning for a future event, however uncertain, can go a long way in enhancing your preparedness for said event. Raising a child and providing them with the resources necessary for their growth and education is an endeavour whose significance can never be overstated. Keeping this in mind, we have designed our savings insurance plans to be flexible and highly customisable.

Here are some of the key features of our savings insurance plans that can serve as excellent child insurance plans:

• Life Insurance Coverage: The first and foremost feature of our savings insurance plans is a life insurance cover. Not only does this mean higher financial security for your family, but also a greater degree of peace.
  
  
• Guaranteed¹ Income: We offer savings insurance plans with guaranteed¹ income. Once you have selected the plan most suited to your requirements, you can decide the sum you wish to contribute at the frequency determined by you.
  
  Once the accumulation phase of the plan is complete, the income phase begins. The ball is once again in your court: you can choose the frequency of the income, which can be either monthly or annual. This decision can be driven by your child's financial needs at different stages of life.
  
  
• Flexibility to add riders^#: Our savings insurance plans are defined by their flexibility. In addition to the life insurance and guaranteed¹ income element of the plans, there is also the option to choose additional life insurance riders^#. We offer the following add-on riders^# with our savings insurance plans.
  
  
• Tax* Benefits: Another key feature of our savings insurance plan, which you can choose as a child plan in life insurance, is that there are certain tax* benefits associated with a subscription to the plan. Under Section 80C of the Income Tax Act, 1961, premiums paid to life insurance companies are eligible for tax* deduction to the tune of ₹1,50,000.
  
  Not only can you claim the aforementioned deduction for your life insurance premium, but also for premiums paid for plans benefiting your spouse and children. In addition to this, the payouts received from our savings insurance plans are exempt from tax* under Section 10 (10D) of the Income Tax Act, 1961.

To Sum It Up

The ravines of life may be filled with unexpected curves, but with the right amount of planning, you can put yourself in a position to navigate through the most unpredictable of paths. Buying a child insurance plan is among the constructive steps you can take to secure the financial well-being of your child. All you have to do is peruse the Tata AIA Life Insurance Plans and select the one you deem most suitable for creating a fund for your child's future. 

L&C/Advt/2022/Aug/2002