How Child Plans Help to Secure Your Child's Future

By pursuing your navigation on our website, you allow us to place cookies on your device. These cookies are set in order to secure your browsing, improve your user experience and enable us to compile statistics  For further information, please view our "privacy policy"

SBI Logo

Join Us

Tool Free 1800 22 9090

How Child Plans Help to Secure Your Child's Future

How Child Plans Help to Secure Your Child's Future

8 Minute |

How Child Plans Help to Secure Your Child

A child insurance plan not only protects your child’s dreams but also gives you the financial boost you need to help them succeed on their chosen path.

As a parent, your primary responsibility lies in ensuring that your child’s every need is adequately met. Your child has dreams of becoming a doctor, or a pilot, or even taking up music. The question is, do you have the financial wherewithal to support your child’s dreams?

If you don’t, it might be time to invest in a child insurance plan.


What is child insurance?

Child insurance plans are a mode of creating a substantial corpus for your child’s future education needs. With higher education costs rising exponentially every year, many parents are faced with the task of accruing a large amount of funds in a short amount of time, for tuitions, accommodation, study material and project expenses, field expenses, etc. Meeting all the primary needs of higher education is a parent’s duty, but straitened finances may scupper your plans. Instead of hustling to gather the necessary funds at a later date, it is more prudent to invest in a child insurance policy that pays the costs of future education – so you don’t have to.


What does the child insurance plan entail?

• The child plan protects your child’s educational dreams by paying for them.

• Your child’s career in their chosen field can flourish with the right educational guidance and tools – and a child plan helps provide them with the necessary scholastic grounding.

• As a parent, you are spared the hassle of borrowing expensive education loans or using your savings to pay for your child’s future education.

• The child insurance plan makes the pay-out once your child attains the age of 18 years. However, its major benefit is that it pays the child irrespective of whether you are present in their life or not. For example, in the unfortunate event of your demise, while the plan is still active, the insurance provider would cease all future premiums but keep the insurance policy active. The pay-out and all other associated benefits would be paid as scheduled. This way, the child plan protects your child’s career whether you are present or not.

• The best child insurance plans in India entail both maturity and death benefits, along with a premium waiver facility, quick and flexible pay-out options, and affordable premiums. The payout may be made at specific intervals if you so wish. Choose a reputed insurance provider and use an online premium calculator to judge the annual premiums you must pay towards the plan.

• Some child insurance policies are market-linked plans. Exposure to debt and equities ensures that the corpus grows as per market conditions, but staying invested for a longer time (i.e. taking the policy when the child is very young) will help the money grow more.

• The policy sum assured in the child plan does not restrict the child using the money solely for educational purposes. They may use the money to fund a business idea, for example.


Human Life Value Calculator

Here’s a tool that shows your financial preparedness towards any eventuality, so that your family never loses its smile even when you are not around.

Plan Now

Child Education Planner

To help you determine investments you need to make regularly in order to fulfill your little one's dream

Plan Now

Retirement Planner

To help you continue celebrating your life post-retirement to the fullest, a tool that helps you plan for your retirement days better!

Plan now

Need Analysis Planner

A holistic life planner that suggests the right amount of insurance and plans based on your unique needs.

Plan Now