Phone NumberTo Buy: 1800-258-5899 (9 am to 6 pm)

|

Emailcustomerservice@canarahsbclife.in

|

Locate BranchLocate Branch

Child Insurance Plan

Child Insurance Plan
Get A Call Back

Child Insurance Plan

A parent’s delight resides in the happiness and success of their children. While you wouldn’t mind spending a little extra for the happiness of your progeny, their success majorly depends on the financial and moral support from parents.

Child insurance plans help you ensure this support for your children while you are there for them and even when you cannot be.

Child Insurance Plan
×

Get a Call Back

Do you want us to call back Please fill the form below

Get a Call Back

Annual Income (In Lacs)

What Is A Child Insurance Plan?

Child insurance plan is an investment cum insurance plan from life insurance companies, which offers financial safety to your child’s dreams and goals. You can use a child insurance plan to invest in the big life goals of your child like higher education and marriage.

While you are building the corpus to fulfil these goals for your child, the insurance plan provides a safety cushion to the corpus in case of your untimely demise. In the unfortunate event of your passing away before fulfilling the goal, the plan can invest the money on your behalf and give the maturity amount you originally aimed for your child.

Thus, child insurance plans are part of broader child-specific financial products, which also include child education plans. Child insurance plans are a mix of insurance and investment products, which ensure the financial security of your child’s future. These plans pay the life cover as a lump-sum amount at the end of the policy term.

Besides the lump-sum pay-out, child insurance plans from Canara HSBC Oriental Bank of Commerce Life Insurance also have periodic payments. These periodic payments coincide with the crucial milestones of your child’s life like education, marriage, etc.

Child insurance plans are generally customisable with options to add a variety of riders that enhance the plan as per your child’s specific needs.

Types of Child Insurance Plans

Child insurance plan is a widely available financial product and most insurers offer it with different riders to appeal to a wide variety of customers.

Child Endowment Plans

A safe way to guarantee financial support to your child’s goal. Child Endowment Plans offer a safe investment option for your money and guaranteed maturity benefits. These plans are best when you know the amount that you will need for the goal.
Also, with guaranteed benefits and goal protection option you can be sure to achieve the amounts even if you cannot be there for your family.

Child Moneyback Plans

Moneyback plans offer a long-term safe investment option for your investment in your child’s future. Moneyback plans are best when you will need money over multiple years for the child’s goal, for example, a four-year undergraduate course which needs an annual fee.
Moneyback plans also offer bonuses to aid the growth of your investment. These bonuses add to your plan’s maturity value.

Child Education Plans (ULIP)

Child education ULIP plans give more freedom to you as an investor. You can choose the amount of risk you want to take on the invested money. You can also use one or more automated portfolio strategies to benefit from market movements even when you are busy elsewhere. Child ULIP plans also offer additional bonuses for long-term investors. You can withdraw money from the accumulated corpus after completing five policy years. Withdrawals are tax-free, so you have the freedom to withdraw any time after the lock-in period.

Our Child Plans

Invest 4G Plan

Invest 4G Plan

A Unit Linked Insurance Plan (ULIP)

Invest in a diverse portfolio of equity and debt funds

Never miss a market opportunity with automated portfolio management

Boost your corpus growth with Loyalty Additions & Wealth Boosters

Policy returns the mortality charge

Protect your child’s dream with Goal Protection Option

Smart Future Plans

Smart Future Plans

A Unit Linked Insurance Plan (ULIP)

Invest in a diverse portfolio of equity and debt funds

Option to change life cover amount during the policy term

Protect your child’s dream from your untimely death or disability

Manage your investment portfolio automatically

Tax-free partial withdrawals after five years

Jeevan Nivesh Plan

Jeevan Nivesh Plan

Endowment plan with whole life cover option

Guaranteed benefits & future values

Add growth to your investment with accrued annual bonuses

Meet your child’s goal and leave a legacy for her with a single plan

Save tax on investment and tax-free maturity value

Future Smart Plan

Future Smart Plan

A Unit Linked Insurance Plan (ULIP)

Invest in a diverse portfolio of equity and debt funds

Manage your investment portfolio automatically

Tax-free partial withdrawals after five years

Protect your child’s dream from your untimely death

Fulfil multiple goals with one investment using Milestone Withdrawal

Money Back Advantage Plan

Money Back Advantage Plan

Three guaranteed money backs

Guaranteed maturity benefit

Add to the growth with a bonus at maturity

Fulfil multiple milestones in your child’s life with a single plan

Limited premium payment term

Save tax while investing and tax-free maturity values

Smart Junior Plan

Smart Junior Plan

Guaranteed annual pay-outs to match your child’s needs

Protect your child’s dream from your untimely death

Faster corpus growth with annual bonuses

Customize the investment and pay out plans as per your needs

Save tax on invested money and tax-free maturity values

Features of Child Insurance Plans

1
Life Cover

Life cover is an integral part of most investment plans from life insurers. Child plan also includes a cover on the life of the policyholder. This life cover will protect the child’s dream in case anything happens to you on the way.

2
Goal Protection from Death or Disability

Child plan will continue to invest the due premiums in your child’s goal after your untimely demise. This option ensures that your child can achieve her goal even after your death, without having to pay any extra premiums.

3
Systematic Withdrawals

Child education plans and endowment plans offer the option of systematic withdrawal or automatic payments from the plan in the final few policy years. This allows your child to meet the financial needs which may arise gradually.

4
Bonus Additions

Participating child plans and unit-linked plans offer rewards for staying invested for long-term. While ULIP plans will add units as loyalty additions and wealth boosters endowment and moneyback child plans accrue annual bonuses. These bonuses are payable with the maturity value of the policy.

5
Avail Loans & Partial Withdrawals

Child endowment and moneyback plans acquire cash value after two years of investment. Thus, in case of emergencies, you can take a loan against the policy without having to break the investment. Child ULIPs, on the other hand, offer partial withdrawals after five years of the lock-in period.

6
Tax-Savings & Benefits

Investment in child education plans is tax-deductible up to Rs. 1.5 lakhs under section 80C of the Income Tax Act. Partial withdrawals and payments from the plan after the respective lock-in periods are also tax-free under section 10(10D).

7
Riders

Child insurance plans come with a variety of riders. The most prominent add-ons offered with child plans are critical illness cover, accidental death cover and the premium waiver option. Some insurers offer the premium waiver option as an in-built feature. The critical illness cover protects against a set of terminal diseases, while the accidental death cover provides an additional sum in case of accidental death.

8
Choice of Funds

A part of the premium paid for a child insurance policy is invested in market-linked assets. The insurance company provides the policyholder with an option to choose from different funds. The funds invest in equity, debt or money market instruments.

9
Premium Waiver Benefit

An important feature of child insurance plan is the premium waiver benefit. In case the policyholder dies in a stipulated duration, the beneficiary gets the sum assured and the insurance company continues to pay the remaining premiums till the maturity date. Invest 4G plan provides three benefit options, with the premium funding option being one of them.

Why Do You Need To Buy A Child Insurance Plan?

Child insurance plan is an investment option designed to serve as a wallet for major life goals of a child. Be it higher education, hobby, or marriage child insurance plan gives you the benefit of investing, growing and using your money as per your child’s needs.

If you mean to provide for your child’s education goals the plans can work as child education insurance. The plan will help your child achieve the goal even if you cannot be there.

Few more important reasons to get going with a child insurance plan at the earliest are:

  • Beat the inflation in higher education costs with investment as per your risk appetite using automated portfolio management options
  • Prepare for an unexpected expense with additional corpus for your child’s goal with bonuses and additional units
  • Stop the unfortunate events like death and disability from harming your child’s future and plans
  • Face financial emergencies or change of plans with partial withdrawal and loan facility from the plan
  • Keep your child’s investment corpus safe from taxes with tax-savings while investing and withdrawals

Benefits of a Child Insurance Plan

  • Fund switching:Policyholders are allowed to switch between investment funds depending on the performance.
  • Modification in sum assured:Some insurers allow the insured to increase the sum assured mid-way through the policy term without any change in the premium.
  • Flexible payout: Child insurance plans offer flexible payout options that can help in fulfilling the child’s financial needs at crucial junctures.
  • Loan availability: You can avail secured loans against child insurance policies.
  • Tax benefits: The premiums paid for child insurance plans qualify for deduction under Section 80C of the Income Tax Act, 1961.

Documents Required

It is the form where all the policy-related information is entered.

Any government-issued document such as passport, driving license, Aadhar card, electricity bill, that can be used as the proof for address.

The individual buying the policy has to produce documents to prove that he has sufficient income to pay the premiums.

Any document such as PAN card, Aadhar card, driving license, Voter ID that can be used to establish the buyer’s identity.

The buyer’s passport, birth certificate, or 10th and 12th mark sheets can be used for age proof.

Tax Benefits with Child Insurance Plans

Tax-Deductible Investment

Child insurance and education plans are life insurance plans. Thus, the money you invest in these plans is deductible from your taxable income under section 80C of the Income Tax Act. Every year you can claim a deduction of up to Rs. 1.5 lakhs by investing in these plans.

Tax-Exempt Partial Withdrawals

After the respective lock-in periods (for different types of child insurance plans) the ULIPs may allow partial withdrawals while other plans acquire cash value. So, in case of an emergency, you can withdraw money from the child plan without stopping your investment. Also, any payments made by the plan before maturity, as in endowment and moneyback child plans, are exempt from tax.

Tax-Free Maturity Value

Maturity proceeds from child education plans are also tax-free under section 10(10D) of the income tax act. Only two of the following conditions may apply after the Union Budget of 2021:

- The annual investment should not exceed 10% of the life cover in the plan

- In the case of ULIP child plan, the total investment (including other ULIPs) should not exceed Rs. 2.5 lakhs in a year (only applicable to plans starting after 1st Feb 2021)

How a child insurance plan will secure your child's future?

No parent wants to leave his/her child in the cold, but you will not be able to secure your child’s future just by having intention.

1.Endowment plans

A child insurance plan helps you create a corpus for your child’s needs. Having adequate funds in times of need is critical for your child’s growth. With premium funding option, your child’s future will be secure even if you meet with an unfortunate incident.

2.Money-back plans

If you have to save Rs 12,000 in a year, it is better to save Rs 1,000 every month rather than Rs 6,000 in the last two months. A child insurance plan helps you maintain discipline while saving for your child’s future. With the monthly payment tenure of Invest 4G plan, you can set aside small amounts for your child’s future.

3.Unit-linked insurance plans

Children are delicate and often fall ill. Child insurance plans provide an option for partial withdrawal of funds without surrendering the policy. The partial withdrawal facility can be used for medical treatment of the child.

Frequently Asked Questions (FAQs) for Child Insurance

Any parent with a child between 0-15 years should opt for a child insurance plan. It helps you deliver inflation-beating returns for the various needs of the child while he/she grows up. As a child grows up, his/her financial needs increase substantially.

The importance of a good education cannot be overstated. Without quality education, a child may not reach his/her full potential. But the rising cost of education can become an impediment in higher education. A child education plan ensures that you do not have to worry about the money for your child’s education. It is a mix of insurance and investment. A part of child education plan is used to provide the financial security of insurance, while the balance is invested in market-linked instruments. The investible portion delivers decent returns in the long run, helping you accumulate a corpus for your child’s education.

Child plans are tailor-made financial products designed to secure children’s future. Typically, child plans have two components—insurance and investment. The insurance component protects the child in case of the parent’s demise, while the investment helps in accumulating a corpus for the child’s needs such as education and marriage. Child plans have several features that are primarily aimed at financially securing children. Some of the features are:

  • Maturity benefit
  • Premium funding option
  • Partial withdrawals
  • Milestone payments
  • Various investment funds
  • Protection of returns

The right time to buy child plans depends on the financial goal and the type of policy. Child insurance policies are long-term instruments and to generate decent returns it is advisable to invest as early as possible. You can invest in child insurance policies even before the child is born. Child education policies are relatively short-term policies. Child education policies can be chosen according to the financial goal. You can invest in child education policy as soon as the child is born if you plan to fund his/her primary and secondary education through the policy. If the aim is to accumulate funds for the higher education of the child, then you can invest at a later stage. In any case, it is not advisable to invest after the child has turned 15.

Child plans are meant to build a financial buffer for your child’s future needs, so, it is important to have a fail-proof plan. A few things to consider while buying child plans are:

  • Goal: It is pertinent to have a clear goal in mind as it determines the type and tenure of the policy. You should invest in a child plan as soon as the child is born. Starting early gives your investment to grow and helps you prepare better for your child’s needs. Similarly, selecting a long-term policy protects your child for a longer-term.
  • Premium waiver: While buying a child plan, it is mandatory to check if the premium waiver facility is available or not. Not having a premium waiver option can leave your child vulnerable in your absence.
  • Inflation: When you are investing for the long term, external factors like inflation cannot be ignored. Invest in ULIPs to generate inflation-beating returns. Invest 4G plan offers customers an option to choose from seven different funds with varying degrees of exposure to equity.
  • Bonus component: Along with the basic benefits of a child plan, insurance companies also offer additional benefits. Even though these benefits are small, they could add value considerably in the long run. For instance, Invest 4G plan provides benefits such as wealth boosters, loyalty additions and return of mortality charges.

The eligibility to open a child education plan is similar to a child insurance plan. The entry age is generally between 18 and 65 years. The maturity age is between 23 years and 80 years. You can start investing in a child education plan with Rs 5,000 per month or Rs 50,000 per year. The policy tenure varies between 5 years and 30 years.

There is no universal minimum instalment for a child education plan. Every insurer has its own minimum limit, even different plans have a different minimum limit. Invest 4G plan has a minimum limit of Rs 5000 if you choose to pay monthly premiums. The minimum premiums for quarterly and half-yearly payment tenures are Rs 15,000 and RS 30,000, respectively. In the annual mode, the minimum premium is Rs 50,000.

Child education plan can either be unit-linked or non-linked. The interest rate of ULIPs is determined by the fund chosen by the policyholder and the performance of the market. The interest rate for non-linked child education plan is decided by the insurance company.

The policy for premature closure of child education plan deposit differs from insurer to insurer. Some insurers allow premature closure of child education plan deposit. If the account is closed before the lock-in period expires, the fund’s value minus the surrender charges id deposited in the discontinued policy fund. The amount earns a minimum of 4% interest and will be paid to you after the lock-in period gets over. It the policy is surrendered after the lock-in period, the total fund value minus the surrender charges will be given to you. But premature closure of child education plan can be fraught with risks and you may not achieve the stated aim. Invest 4G plan allows you partial withdrawals without surrendering the policy, which essentially disincentivises premature closure of the policy.

Child education plans come with flexible payout options. You can either set up a standing instruction for instalment payment when you buy the policy or inform the insurance company during the policy tenure. Insurance companies generally accept requests for instalment payment a few months before the maturity.

One of the defining features of child education policies is the partial withdrawal facility. Most insurance companies allow partial withdrawal from child education plans to take care of liquidity needs. Invest 4G plan allows partial withdrawal after the 5th policy year.

You can avail a secured loan against a child education plan. The loan can be used to fund the higher education of the child.

Child education plans are like child insurance plans with some slight differences. Child education plans have relatively shorter tenures than child insurance plans. Child education plans have milestone payments coinciding with the educational stages of the child. These plans have a limited scope and are not dynamic products like child insurance plans.

When you buy life insurance, the insurance company asks for the nominee details. Only the person named as the nominee in the policy can cash out a life insurance policy in case of death of life insured.

Child education plan not just secures the financial future of the child but also provides tax benefits to the policyholder. The premiums paid for child education plan are eligible for tax deduction under Section 80C of the Income Tax Act. The maturity amount is also tax-exempt under Section 10(10D) of the income tax law.

While there are several child plans in the market, the Invest 4G plan is the best of the lot. Invest 4G with its unique proposition provides all-round protection to your child. With the online ULIP plan , you can decide the premium payment tenure and also the settlement option.

You can invest in a number of financial products for your child’s education. If you need a long-term savings instrument, the PPF is an eligible option. But if the child’s education is the sole aim of your investment, nothing is better than a market-linked scheme. Market-linked investments, especially equity investments tend to perform better in the long run. Investment in market-linked schemes can ensure handsome returns on your savings by the time your child grows up. Opt for Invest 4G plan to give your child a secure educational future.

Getting insurance required a visit to the bank or the insurer’s branch earlier. But with the popularity of online ULIP plans, getting an insurance plan has become extremely easy. You can buy a host of insurance products directly from www.canarahsbclife.com and get discounts on the premium from the company.

While the cost of insurance depends on a host of factors such as tenure, coverage and the mode of payment. With Invest 4G plan, you can start investing for the financial future of your child with just Rs 5,000 every month. However, if you are not clear about the cost of insurance for your child, you can use the ‘life insurance calculator’ in the ‘tools and calculator’ section of www.canarahsbclife.com. Similarly, you can use the ‘child education planning calculator’ to get an idea of the cost of child education plans.

Considering the flexibility in the premium payment tenure and the payout settlement, Invest 4G is the best scheme for the child. The Invest 4G plan also provides the premium funding option which ensures the financial stability of the child even in the absence of the policyholder.

To choose the ideal child insurance plan, you will have to start with planning the various stages of the plan and your child-specific milestone payments.

  • Paying capability: Just investing in a child insurance plan is not enough, you will have to pay the premiums regularly and timely to keep the policy active. Make a correct estimate of your paying capability and decide the premium payment frequency.
  • External factors: While buying a child insurance plan, consider the external factors such as inflation and interest rates before finalising the maturity benefit.
  • Premium waiver: The premium funding facility is a crucial feature for the success of the child insurance plan. Not having the premium waiver facility can leave a costly chink in your child insurance armour.

To choose the ideal child insurance plan, you will have to start with planning the various stages of the plan and your child-specific milestone payments.

Having life insurance has become a necessity and the earlier you buy one the better. Life insurance plans are cheaper when you are young. Moreover, when you are buying products such as ULIPs that have an investment component, having a long policy tenure helps in compounding your savings.

Most insurance companies have started offering online policies. You can either pay through offline mediums or opt for online ULIP plans. Buying insurance policies online is cheaper and hassle-free. The premiums can easily be paid through the website or mobile app.

There are three major rider benefits provided with child insurance plans.

  • Premium waiver benefit
  • Accidental death and disability cover
  • Critical illness cover
  • The frequency of the payout is decided by the policyholder while buying the insurance plan. Even if you fail to define the frequency of the payout while buying the policy, it can easily be rectified during the policy term.

    You can appoint a minor as nominee for your plan, but you will have to nominate an appointee who will have to give his/her consent to act as an appointee. The appointee will cease to hold power once the minor nominees become majors. In the event of a claim, of your nominee is minor and you did not name an appointee, the proceeds will go to the legal heirs.

    No child should give up on his/her dreams to study in premier institutes like IIT and IIM due to financial constraints. With the rising cost of higher education, investing in a child plan has become extremely important. Child plans help you save in a disciplined way for a secure financial future of your child.

    Canara HSBC Oriental Bank of Commerce offers a plethora of child plans to take care of varied needs. With unique features such as fund switching, premium redirection, change in sum assured and return of mortality charges, child plans from Canara HSBC provide unprecedented coverage.

    Online Plans Pay Premium Get a Call Contact Us
    Chat
    Back to top