Inclusions and Exclusions in Life Insurance Plans for Children | PayBima

A child insurance plan allows financial security for your child by helping you accumulate more money over time. Let’s read about inclusion and exclusion of a child insurance.

If you are serious about protecting your children’s financial future, child life insurance is the way to go very good money on purpose. A child insurance plan is a benefit plan that provides both coverage and insurance. Therefore, it allows financial security for your children by creating a group through the term of the policy and providing life insurance protection. The money received during the maturity of the plan can be used for their higher education expenses, career goals and for their wedding expenses.

Another major benefit of child insurance is that it continues even if the parents or the policyholder die during the policy. Therefore, in this case the insurance provider puts the money on behalf of the owner and gives the child all the benefits when he grows up according to the plan. Therefore, the protection you want your child to have with child insurance is permanent and the benefits are received when they grow up. Therefore, child insurance plans allow higher education protection for your children when they reach college.

Let’s take a look at the inclusions and exclusions of child insurance in India.

Items Covered under Children’s Life Insurance Plans – Included in the Policy

  1. Life Insurance (for Policyholder) – Most child insurance plans allow the individual to be covered. In fact, life insurance is an important part of Child insurance that ensures that the child’s dreams are protected even if something happens to the parents. Therefore, even if the parents die and are unable to pay the amount, it continues to maturity and allows the beneficiary to receive the full amount as promised.
  2. Target Protection (For Child) – Since the child’s plans continue even after the parents’ death, the purpose of the child’s work is protected. Therefore, even if the money stops coming due to the death of the owner/parents, the insurer continues the policy and allows the child to receive benefits at the end of the policy. In this way, the child can achieve his career goals even if the parents are not present or if the parents are unable to pay due to other disabilities.
  3. Systematic Removal – Another plus of children’s insurance plans is that they offer systematic withdrawals. Therefore, after a certain period of the policy (at the end), the child insurance policy helps parents withdraw money to meet other important financial needs if any problem arises.
  4. Additional Bonus – Apart from the above benefits, child insurance also allows an additional bonus to the beneficiaries of the plan. These bonuses are awarded for staying invested for the duration of the plan. This feature is similar to ULIP with the only difference being that ULIPs offer loyalty and wealth incentive bonuses, while Child plans allow annual bonuses, which are paid along with the maturity amount.
  5. Leasing and Partial Repayment – This is another important benefit of the child insurance policy. Under this benefit, the owner can claim a loan against the policy. Also, they don’t need to break the bank to get the loan. Some children’s policies also allow the owner to withdraw a portion of the money after closing within five years.
  6. Passengers (Extra) – Most child insurance policies allow the policyholder to get multiple riders such as critical illness rider, high cost rider and accidental death rider and so on.
  7. Choosing a currency – Many child insurance plans invest a portion of their premiums in investments in various companies related to the market. Your insurer will provide you with a variety of financing options such as equity, debt and other options that you can choose from as a marketing tool for your child’s policy.
  8. Premium Upgrade – Under premium interest the policy continues even if the parents or the policy owner dies during the policy and allows the beneficiary to receive the benefit at the time of maturity.
  9. The price tag – After the death of the policyholder, the insurance provider provides the corpus as a death benefit which includes the entire amount in one payment. This money can be used to pay any debts of the owner or for other purposes.

Items not covered under Children’s Life Insurance Plans – Policy Exclusions

There are certain situations where the insurance company does not provide death benefit under the child insurance policy. These are the exceptions to child insurance policies:

  • If the nominee dies due to suicide or self-harm within one year of purchasing the policy, the nominee will not get any money.
  • If the representative dies participating in dangerous sports such as running, flying, etc., the insurance company will not pay the money.
  • Also, if the policyholder dies due to the use of drugs or alcohol in excess, the nominee will not receive any benefits
  • If the insured dies due to an accident that occurred while the insured was under the influence of drugs/alcohol, the amount of benefit received by the nominee will not be sufficient.
  • Finally, if the owner dies as a result of participating in a criminal or illegal activity, the requested amount will not be paid

Also Read: How Is Child Insurance Different From Term Insurance?


It has been confirmed from the above that child insurance policies in India are very beneficial to protect the future of the child. Insurers can pay child premiums online or over the internet. Online payments are very convenient and can be done from the comfort of your home.

However, it is important for the policyholder to consider all aspects of a child plan in terms of features and benefits before purchasing the plan. This way, they can buy the best plan that fits the needs of the child.

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