Different Types of Child Plans Available in India
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One of the prime worries in every parent’s mind is securing the future of their child financially for the time when they wouldn’t be around them. Child Life Insurance Plans help you take care of this worry so that your child and you can enjoy their present as well as their future. Know about different types of child plans in this article.
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Child Life Insurance Plans: What They Are and How They Help
A number of insurance companies in India offer child insurance plans that serve the dual purpose of providing insurance coverage for your child as well as offering investment options to help their major life goals, such as higher education and marriage.
These policy plans are designed exclusively to provide financial security to your child so that you don’t have to worry about covering major expenses ahead in their lives. Opting for a child plan in life insurance allows you to regularly invest towards realizing their big dreams and goals with regard to their education, job, or even marriage.
Types of Child Life Insurance Plans in India
A number of insurance service providers offer life insurance policy plans for child future security. You may check online for all the different plan options available with various insurance companies. Here are some of the top child life insurance plans available with most insurers:
1. Single Premium Child Plan
For parents who prefer to pay one-time premium in a lump sum and not worry over regular payments at different due dates, the Single Premium Child Plan works best.
Key Benefits of the Plan
- Facility to pay the entire premium amount for the whole term of the plan at one time in lump sum
- Saves you from any confusion over remembering due dates for payment at regular intervals
- Prevents you from the hassle of arranging money to be paid regularly in the form of premium amount
- Great discounts available with some insurers along with the offer of paying lower premium amount (check with your insurer about any such offer)
2. Child ULIP
This plan comes with 3 top benefits for the child – greater coverage on insurance, regular investments that can be used to cover major expenses for the child, and the flexibility to contribute to the stock market. This is why Child ULIP plans are more suitable for longer term such as at least 10 or 15 years so that you can receive a higher return on the amount invested.
Key Benefits of the Plan:
- In case of death of the parent or the legal guardian, the child becomes entitled to receive the sum assured.
- In this case, all future premium payments are also waived off for the child and the maturity value is paid out upon maturity of the policy.
- Since the market plays an important role in these plans, the payout value is also decided by the market, which increases the chances of good returns.
- These plans offer greater flexibility to choose among different types of investment fund options to secure the highest returns for the amount invested.
3. Regular Premium Child Plan
This plan works best for those parents who wish to divide premium payment into small amounts instead of paying one whole lump sum to the insurer. This also encourages continuity of the policy for a longer term, thereby allowing you to reap greater benefits.
Key Benefits of the Plan:
- Flexibility to pay premium as per convenience – monthly, quarterly, half-yearly, or yearly
- Lesser amount of premium amount payable makes this plan attractive and favorable to many parents
4. Child Endowment Plans
This child plan in life insurance guarantees fixed and stable return on investment through bonus received over the sum assured. This policy starts distributing bonuses from the second year of the commencement of the plan. Besides, the plan also allows the provision to check whether the bonus is disbursed in cash or compounded as a reversionary bonus or computed with simple interest.
Key Benefits of the Plan:
- Regular and stable returns on investment in the form of bonus
- Bonus starts from the second year of the plan
Add-on Riders for Child Insurance Plans
These child insurance policies also come with additional rider benefits that can help provide greater security to the child. Some of the add-on riders that you can choose in conjunction with the child insurance plan include:
- Critical Illness Rider: This rider offers enhanced coverage in case of some critical illnesses that the child is suffering from.
- Accidental Death and Disability Rider: This benefit assures payment of additional sum assured to the child in case the parent meets with an accident that may result in disability or even death.
Note: These riders can be purchased separately in addition to the child insurance plan that you buy for your child.

Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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