Child Life Insurance: You Cannot Afford to Not Have One

‘’Your children are not your children.

They are the sons and daughters of Life’s longing for itself.

They come through you but not from you,

And though they are with you yet they belong not to you.’’

~ Kahlil Gibran

Having children is one of the greatest joys in life as they complete the perfect picture of an ideal life borne by our minds. It is true that all children leave their nests one day, but while they are with parents, they need thorough nurturing and care, and one of the sources to replenish our bundle of joys is to get a child life insurance.

Read on to learn more as to why you can’t afford to not buy a child insurance for your precious little dumplings.

Why You Need Life Insurance?

A life insurance policy can be the best way to safeguard your family’s financial future because during those times when the sun stops shining over you, you need to have a backup plan to get things going for you. A life insurance policy ensures the needs of your family and loved ones are met once you are gone, and this planning needs to be started from the grassroots level early on in life.

Millions of people every year buy life insurance for several reasons like family security, tax benefits, savings etc., and if you are the sole breadwinner of the family then you shouldn’t delay buying a life insurance policy. With the help of an effective life insurance plan, your family in your absence can fulfill their basic needs, clear loans, debts and the said plan will provide them a complete and end-to-end financial cover.

An appropriate life insurance policy will offer:

  • Pure life cover
  • Planning of financial investments
  • Retirement planning
  • Savings planning
  • Child education planning

What is a Child Plan?

Buying a Child Plan is insurance plus investment both for securing their future and for financing the vital decisions of their life such as higher education and marriage. So, it provides a dual cover like financing the crucial times of the child’s life and securing their future in the case of the demise of the insured.

Types of Child Plans

There are two basic types of child plans, viz;

  1. A) Child ULIPs

Child ULIPs are investment where part of the premium amount goes into debt instruments like bonds, mortgages, leases etc., and the other half goes into equity instruments. The policyholder can keep switching between the two instruments.

  1. B) Child Endowment Plans

Just like other endowment plans, this plan also had both a saving component and lump sum maturity benefit.

Unbelievable Prices of Child Plans

Following are some of the unbelievably low priced Child Plans:

Child Plan Minimum Annual Premium Minimum Sum Assured
SBI Life Smart Champ Insurance Plan INR 6000 INR 1 lakh
Edelweiss Tokyo Life Edu Save Plan INR 6968 INR 2.25 lakh
ICICI Pru Smart Kid Assure Plan INR 15000 5 times the annual premium
MetLife Smart Child Plan INR 18000 10 times annual premium
HDFC SL YoungStar Super Premium INR 24000 Subject to underwriting
Aviva Young Scholar Advantage Plan 10-25 years 10 times the annual premium

Elements of Life Insurance

In general, life insurance policies for children are meant to provide economic viability in case the earning parent dies or for pursing important life choices without any hindrances.

Following are some elements of life insurance, oriented towards a child plan:

  1. Premiums: Can be paid as a lump sum amount on commencement of the policy tenure or can be paid periodically as well. Many companies give options like monthly/quarterly/half yearly or annually too, wherein the payments are deducted directly from the bank accounts. The amount of the premium depends on the maturity rate and sum assured.

  1. Sum assured: The sum assured will be paid as a lump sum amount of the demise of the policyholder.

  1. Maturity: The maturity amount depends on the plan chosen by you and the time frame as to when it will mature, viz; 5, 10, 15 or 20 years later.

  1. Tenure: They can be decided depending on the current age of the child and the maximum limit goes up to 18-21 years, but there are exceptions as well. The insured, however, should not be over 70 years of age at the time of policy maturity.

  1. Payouts: The payouts depend on the duration mentioned in the chosen plan, whether they will paid as lump sums or via instalments. This mode helps in paying dies such as fees for higher education, marriage, mortgage etc.

  1. Premium waivers: Suppose a person has purchased a plan that matures in 15 years, and he dies within this time frame. In such a case, a premium waiver would be applicable i.e. the sum assured will be paid to the beneficiary and the premium for the remaining tenure will be paid by the insurer. At the end of the tenure, the policy will mature as per the terms mentioned in the policy plan.

  • Riders: At times, there are riders attached to the child life insurance document and are available as a premium waiver rider, critical illness rider a and accidental death and disability rider. The first one is generally added to the plan already, while the second provides coverage against pre-existing diseases and the last refer to unfortunate accidents leading to death or disability of the insured.


Securing your child’s future is a something that should top your list of priorities. You should definitely take drastic steps in ensuring your child has access to everything and can make all his/her dreams come true and should never be bogged down by financial troubles. A child insurance plan gives you just the right security you want, so buy one as soon as possible!