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List of top 5 insurance plans for Child in India 2024

As a parent, what is the utmost concern that comes to your mind every time regarding your child? It must be:

A financially stable future in your absence
Savings for child education, marriage, and many other things.

With life being unpredictable, it is crucial to secure your child’s future with thoughtful planning and safeguard their economic well-being. But how to do that? Buy an insurance plan for the child. Now the question arises: Which plan to choose? This guide offers the top 5 insurance plans for children along with its features.

Why a Child Insurance Plan?
Top 5 Insurance Plans For Child
Best Insurance Plans For Child in India to Buy in 2024
The Bottom Line
Frequently Asked Questions (FAQs)

Why a Child Insurance Plan?

Given the uncertainties of life, rising inflation, and educational rates, it is crucial to understand who is going to look after your children when you are not there.

Many insurance companies offer child insurance plans, which are a combination of savings and insurance for the secure future of the child. These plans ensure that all the requirements of the child will be fulfilled in the parent’s absence. Along with protecting futures, these plans provide flexible payouts at specific intervals of time.

With the variety of child insurance plans, selecting the one can be tiring. So here are the top 5 that will help you come to a decision.

Top 5 Insurance Plans For Child

Company Name	Plan Name
Bajaj Allianz Life Insurance	Bajaj Allianz Young Assure
HDFC Life Insurance	HDFC SL YoungStar Super Premium
Kotak Life Insurance	Kotak HeadStart Child Assure Plan
Aditya Birla Sun Life Insurance	Aditya Birla Sun Life Insurance Vision Star Plus
Bharti AXA Life Insurance	Bharti AXA Life Child Advantage Plan

Best Insurance Plans For Child in India to Buy in 2024

Now, let’s have a look at the detailed explanation and benefits of the plan.

Bajaj Allianz Young Assure

It is a non-linked, participating, life, individual, regular, and limited premium payment endowment savings plan that ensures a secure future for your little one. The plan offers multiple premium payment and policy term options for easy availability of money during requirements like a child’s marriage and education.

To ensure good returns, it provides bonuses, Guaranteed Maturity Benefits (GMB), and Guaranteed Additions (GA). What makes this top child insurance plan unique is the special rates for female policyholders.

Features of Bajaj Allianz Young Assure

Death Benefit: In case of the death of the life assured, and if all due premiums are paid, the guaranteed death benefit of 105% of the total premiums will be given to the nominee.
Accidental Permanent Total Disability Benefit

In the case of Accidental Permanent Total Disability of the policyholder during the policy term:

The policy converts to a fully paid-up policy and continues to accumulate all future GA and Vested Bonus and Terminal Bonus, if any.
The Maturity Benefit will be payable at the end of the policy term.
On the death of the life assured, and if the APTD Benefit has already been triggered, the death benefit will get paid.
Surrender: You can surrender the policy anytime, provided at least-
One full year’s premium is paid if the premium paying term is less than ten years.
OR
At least two full years’ premiums have been paid if the premium paying term is ten years or more.

Change the payment frequency at any time during the policy term (i.e., yearly, half-yearly, quarterly, or monthly)
Policyholders can avail of loans under the policy once it has acquired a surrender value. The loan amount shall be up to 90% of the surrender value.
Enhance the policy coverage by adding rider benefits, such as

Accidental Death Benefit Rider,
Accidental Permanent Total/ Partial Disability Benefit Rider,
Critical Illness Benefit Rider
Family Income Benefit Rider
Waiver of Premium Benefit Rider

HDFC SL YoungStar Super Premium

HDFC SL YoungStar Super Premium plan offers financial protection for your child by providing yearly payments to your family in case of your unfortunate death. One can choose their premium and investment fund.

In your selected funds and the proportion you specify, the company then invests your premium and net of premium allocation charges. You will receive the accumulated value of your funds at the end of the policy term.

Key Features of HDFC SL YoungStar Super Premium

In case of unfortunate death of the life assured, the company pays 100% of the future Premiums.
Flexibility to choose from a combination of Income, Balanced, Blue Chip, and Opportunities Funds.
Plan customization is available to fit your child’s various future needs.
Lump sum partial withdrawals are allowed from the funds after 5 policy years.

Flexible Benefit Payment Preferences:

Save Benefit - The company pays the sum assured to the beneficiary, and the insured family does not need to pay any further premiums. The company pays 100% of all the future regular premiums at the original level. On Maturity, they will pay the fund value to the beneficiary.

Save-n-Gain Benefit - Save and Save-n-Gain benefits are similar, except the company pays 50% of all the future premiums towards your policy, and the balance 50% of the premiums will get paid to the beneficiary as and when due.

Rider Options Available:

HDFC Life Income Benefit on Accidental Disability Rider
HDFC Life Critical Illness Plus Rider
Kotak HeadStart Child Assure Plan

The next plan on our list of top 5 insurance plans for child is Kotak Headstart Child Assure. It is a unit-linked dual-benefit plan to secure your child's future financial requirements and guarantee financial security.

Key Features of Kotak HeadStart Child Assure Plan

In the event of the unfortunate death of the Life Insured, the Beneficiary will get a Triple Benefit:
- (i) Basic Sum Assured paid immediately
- (ii) Premium Waiver - Premium payment obligation ceases, and all future premiums will be added to the Fund Value.
- (iii) The policy will continue, and the Fund Value will be paid at maturity
Flexibility to invest in a comprehensive range of funds.
After the completion of the 5th policy year, partial withdrawals are allowed.
To maximize the returns, you can switch between fund options or alter the future premium allocation as per your needs and investment goals.
Tax benefits are available under section 10(10D) and section 80C of the Income-tax Act, 1961.
Aditya Birla Sun Life Insurance Vision Star Plus

To secure your child's educational objectives, Aditya Birla Sun Life Insurance Vision Star Plus comes with regular assured payout and accrued bonuses. In addition, the plan offers flexibility in premium-paying terms and policy terms.

Key Features Aditya Birla Sun Life Insurance Vision Star Plus

It offers growth to your savings by enhancing the savings with accrued bonuses starting from the first policy year, which continue to accumulate till maturity.
The company offers regular bonuses as they will declare simple reversionary bonuses regularly by the end of each financial year, and that will get added to your policy on its policy anniversary.
As per your requirement for a biannual or annual payout, select one of the two options at inception to obtain the Assured Payouts 5 years after the premium paying term is over.
Once the policy acquires surrender benefit, use it as collateral to take a loan from ABSLI of a minimum of Rs.5,000 and a maximum goes to 85% of the surrender benefit as on the date less any o/s policy loan balance.
Bharti AXA Life Child Advantage Plan

The plan ensures that a child’s dreams are always fulfilled in your absence, as it offers assured payouts at key milestones and waives off all future premiums. To help the family maintain their standard of living, the Life Insurance Benefit acts as a contingency fund, ensuring that nothing comes in the way of your child’s future.

Key Features of Bharti AXA Life Child Advantage Plan

Option to choose the desired benefits:
Money Back Option: 40% of the Sum Assured, along with the non-guaranteed accrued reversionary bonus and terminal bonus (if any), will be payable on the Maturity Date at the end of the Policy Term.
Endowment Option: 125% of the Sum Assured, along with the non-guaranteed accrued reversionary bonus and terminal bonus (if any), will be payable on the Maturity Date at the end of the Policy Term. Policyholders can choose either Money Back or the Endowment Option at the policy inception. Option, once chosen, cannot be changed at any point in time during the Policy Term.

Potential Upside with Bonus: Policy participates in the allocation of surplus or profits declared by the Company. If premiums are paid, a Non-Guaranteed Annual Simple Reversionary bonus occurs. If declared, the Non-Guaranteed Terminal bonus is also payable along with the Maturity Benefit.
According to your child’s age, select a Policy Term between 11 to 21 years.
In case of the unfortunate death of a parent, the future Premiums get waived off, and the Maturity Benefit and Guaranteed Payout will continue as per the Policy.

The Bottom Line

Securing your child’s insurance for hassle-free progress, Life insurance plans are crucial. Each of the top 5 child insurance plans offers a different set of benefits. Whether it is offering financial support in essential times or ensuring their education, consider your child’s requirements and choose the plan that aligns with the family’s future desires.

Frequently Asked Questions (FAQs)

How to select the best child insurance plan?

Select a plan that provides flexibility and additional benefits as per your financial goals and child’s requirements. Although each plan offers something beneficial for the child’s future, so find the one that meets your unique objectives.

What is the HDFC SL YoungStar Super Premium plan?

The plan helps by providing yearly payments to your family in case of your unfortunate death. In addition, you will receive the accumulated value of your funds at the end of the policy term.

What are the advantages of Kotak's HeadStart Child Assure Plan?

Create wealth for your child's future financial needs.
Triple Benefit for the financial security of the child.
Invest in a multiple range of funds.

What are the features of the Bharti AXA Life Child Advantage Plan?

The key features of the plan are -

Dual Payout Options
Premium Waiver Benefit
Flexible Policy Term
Potential Upside with Bonus

How to plan for child education and marriage?

You can get a child insurance policy that ensures the child's financial security even in your absence. The dual benefit is that the regular payouts will cover educational and marriage expenses.