Child Insurance Plans
What are Child Insurance Plans?
A child education plan is a specialised policy meant to help parents financially secure their child's
future in a structured manner. Parents are required to pay a premium, and in return, they will receive a
maturity benefit specifically intended for the child's higher education. Additionally, the policy also
includes a life cover element to provide insurance coverage.
The premium payment options can be monthly, semi-annually, annually, or as a one-time payment. In the
unfortunate event of one parent's death, the child plan offers triple benefits to the beneficiaries.
These benefits include a life insurance cover, payout of the maturity benefit, and the insurer taking
over the payment of future insurance premiums. The maturity benefit payout can be received either as a
lump sum upon maturity or periodically at different stages of the child's age.
Explore our Insurance Solutions
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Child Plans
HDFC Life Sanchay Plus
UIN: 101N134V20
Looking for safe financial instrument which provides alternate source of income.
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Guaranteed1 Income4 for period of 25 or 30 years
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Get Back Premiums as Guaranteed 1 Lumpsum Benefit4 on maturity
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Life Cover to protect your family
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Child Plans
HDFC Life Click 2 Achieve- Smart Student
UIN: 101N186V02
A Non-Linked, Non-Participating, Individual Savings Life Insurance Plan that offers flexibility to customize the benefits.
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Guaranteed1 Benefits
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Flexibility in choice of benefits
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Increasing upto 10% p.a18
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Features of Child Insurance Plans
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Life Cover
Safeguard your loved ones by ensuring that in unfortunate circumstances, the policy provides a lump sum life cover amount to the nominees.
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Premium Waiver
Secure your child's future even in the face of unexpected events. In the event of the policyholder's untimely demise during the policy term, the insurer will bear all remaining premiums.
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Partial Withdrawals
From the 6th year onwards (after 5 years), the policy allows for partial withdrawals. This unique feature can support important milestones in your child's academic journey, such as admission fees and educational trips.
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Sum Assured
Receive the remaining balance of the sum assured upon maturity, in addition to the life cover amount after deducting partial withdrawals. Your child's future is truly protected.
Frequently Asked Questions
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InCred Wealth website offers the facility to purchase HDFC Life Child Insurance plans through our platform. Customers can enter their details on our website, and our Relationship Manager will reach out to them to complete the purchase process.
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To qualify for a child insurance plan, certain eligibility criteria must be met. The child should be an Indian citizen, and both the parents or legal guardians should also be Indian citizens. Additionally, age requirements may vary depending on the specific plan and insurer.
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Children's education plans in India offer two types of tax benefits. Firstly, you can enjoy tax deductions on the premium paid, up to Rs. 1.5 lakh, under Section 80C. Moreover, up to Rs. 2.5 lakh per year is exempt from tax on the life cover or the sum assured amount received from the insurer, as per section 10(10D).
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India provides various government policies to support child education. Prominent examples include the Sukanya Samriddhi Yojana, CBSE Udaan Scheme, Dhanlaxmi Yojana, Balika Samriddhi Yojana, and more.
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Absolutely! You can tailor a child plan according to your specific needs. This customization can encompass factors such as the pay-out structure, policy term, premium amount, and additional perks aligned with your child's unique requirements.
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Investing in a child insurance plan carries significant importance. It serves as a means to fund higher education, acts as collateral in times of financial constraints, enables partial withdrawal for a child's medical treatment, and offers valuable tax benefits.
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A notable feature of a child insurance plan is the freedom to withdraw funds in multiple fragments without waiting for the policy to mature. This flexibility allows parents to meet their child's financial needs at different stages of life. Lump sum partial withdrawal becomes possible after completing five policy years, provided the life assured is at least 18 years old. Partial withdrawal leading to policy termination is not permitted.
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Child plans are eligible for tax benefits on death or maturity claim profits under Section 10(10D) of the Income Tax Act, 1961. Additionally, the premiums paid towards the insurance plan are eligible for tax deduction under Section 80C. The specific benefits are subject to prevailing tax laws.
At InCred Premier, we understand the aspirations and dreams you have for your child's future. We are your proactive partner in navigating the evolving landscape of wealth in India. Our expertise, innovative technology, and tailored solutions empower you to achieve financial freedom for yourself and your loved ones. Your unique financial journey is our mission and vision.
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- 1. Provided all due premiums have been paid and the policy is in force.
- 2. Lump sum benefit is available under Guaranteed Maturity option. Regular Income is available under Guaranteed Income, Long Term Income and Life Long Income options.
- 3. Applicable on choosing a policy term as (100 - age at entry) years.
- 4. This applies to Income Variant, whereby guaranteed income is paid on survival of Life Assured during the policy term, provided all due premiums are paid during the premium payment term
- 5. ROP – Return of Premiums. This applies to Income variant, whereby all base premiums are returned to policyholder on survival of Life Assured at maturity, provided all due premiums are paid during the premium payment term.
- 6. This feature is available in select products under the savings category. Please read the product brochure of your selected product to know the details.
- 7. The Guaranteed Additions will accrue at the rate of 3% p.a. of Sum Assured on maturity during the first 5 policy years and are payable at maturity or death, whichever is earlier.
- 8. Premium amount excludes any underwriting extra premiums, any loading for modal premium and taxes and levies as applicable.
- 9. Please refer Auto Cover Continuance section in the brochure.
- 10. Total Premiums Paid is the total of all the premiums received, excluding any extra premium, any rider premium and taxes.
- 11. As per Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.
- 12. Subject to conditions specified u/s 80C of the Income tax Act, 1961.
- 13. Subject to conditions specified u/s 10(10D) of the Income tax Act, 1961.
- 14. This is applicable for first year premium only for premium paying term (PPT) of 12 & 15.
- 15. Guaranteed Income Benefit (GIB) is paid on survival during the income payout term, provided all due premiums are paid during the premium payment term. The last installment of GIB is paid as part of maturity benefit and other installments are paid as part of survival benefits during the policy term
- 16. Quantum of benefits is guaranteed irrespective of the experience.
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17. Save 46,800 on taxes if the insurance premium amount is Rs.1.5 lakh per annum and you are a Regular Individual, Fall under 30% income tax slab having taxable income less than Rs. 50 lakh and Opt for Old tax regime.
# The afore stated views are based on the current Income-tax law. Also, the customer is requested to seek tax advice from his Chartered Accountant or personal tax advisor with respect to his personal tax liabilities under the Income-tax law.
- 18. 1 to 10% Simple Interest per annum, depending upon the increasing income percentage chosen. Applicable for Early income and income structure
