Child Insurance Plans

Identifying the need for a child insurance plan is the first step towards selecting one. Follow three steps to shortlist the perfect plan for your needs:

1. Identify your goals and the amount you plan to invest. Try to estimate the amount you intend to spend on your child's education or marriage in the future. By doing this, you would be able to choose the premium amount and policy term.
2. After the policy term, you should work with a financial expert or research on your own to calculate the sum assured. Browse through a variety of plans from term plan, savings plan to ULIP plans and choose the one that fulfills your financial goals.
3. Compare the different plans available in the market and shortlist what's suitable for you. Compare across relevant parameters and apt for the one that suits your needs.

While it is easier to plan your investments if you have a ballpark number in mind, it is not easy to estimate the cost of your child’s education or funding their business or marriage.

Before planning an investment, factor in the time based on your child's current age. Determine whether your child will study locally or abroad for under graduate, graduate and post graduate degrees. Research the cost of current education in that country and factor in the impact of inflation. Make an educated estimate on a reasonable rate of the return on your investments in the coming years. And once these parameters are sorted, calculate the monthly savings you have to set aside to mean this financial goal.

The standard set of documents required for starting an insurance plan for your children are:

1. Proof of address: Any document from a passport, driving license, Aadhar card will work.
2. Policy form: This form will containall details of the plan and the terms you opt for.
3. Income proof: Parents who plan to buy an insurance policy for their children need to show the source of income for paying the premiums like salary certificate.
4. Identity proof: The commonly used identity proofs in India include PAN card, aadhar card, driving license, voter ID, etc.
5. Proof of age: You could submit your passport copy, birth certificate or your education marksheets.

While shortlisting a child insurance plan, opt for an insurer who has a high claim settlement ratio. In times of crisis, this will ensure that your claim will be processed without any delay. Follow the below steps for processing your claims

1. When an unfortunate event occurs for the claim to be filed, inform the insurance company without much delay. This can be done either through a call, an email or visiting the nearest branch.
2. Along with the claim form, submit details like policy number, date and cause of the incident, nominees, etc.
3. Provide all supporting documents and reports.
4. An assessor appointed by the insurance company will verify your case and the documents submitted.
5. If satisfied and no further investigation is required, the claim benefit is usually transferred within 30 days of submitting the documents.

Child life coverage refers to the decided upon amount that the nominee receives in case anything happens to the policyholder during the policy term.

Yes, you can purchase a child insurance plan for your 15-year-old child. However, when it comes to investments, the earlier you start the better.

In a child plan, the nominee refers to the person who will help look after the child and the policyholder’s financials if anything happens to them during the policy term. The nominee is responsible for ensuring that the money goes to the intended individual. The beneficiary is the child or the individual who should receive the payout from the policy. In certain situations, the nominee and beneficiary can be the same.

The beneficiary is the individual who receives the payout from the policyholder or parent. Parents must ensure that their beneficiary is somebody who can handle the responsibility of receiving the plan benefits. If not, they should appoint a responsible nominee.