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A policy for financial assurance of kids


Parents invest in various schemes for their children. Larger sums are needed for their education, marriage, etc. Insurance are coming up with attractive policies for such. If something happens to the policy holder, this policy provides insurance as well as other needs of kids.

In case something happens to the policy holder, apart from paying the insurance amount to the children, they waive off the remaining premiums. After maturity, insurance amount along with bonus is paid. If the policy holder is still there at the time of maturity, policy amount along with some benefit is paid.


1. Can provide financial assurance to the children.
2. Can avoid trouble during higher education and marriages of children.

Minimum age of policy holder: 18, maximum age 65.
Children minimum age: 30 days, maximum 13 years.

Policy tenure:
Minimum: 10 years, maximum: 23 years.

Premium tenure:

Minimum: 5 years, maximum: 12 years.
There are policies which accept all the premiums at one time.
Premium period depends on the policy taken.

Total insurance amount:
Minimum 1 lakh to a maximum of 1 crore.

Minimum age of policy holder: 25 years, maximum 70/75.
Minimum age of children: 18, maximum 28.

Premium payment:
Several companies introduced single premium policies.

Generally, monthly, quarterly, half yearly or yearly.

Grace period:
The grace period for monthly premiums is 15 days and 30 days for the remaining.

Tax benefits:
There are benefits under 80C and 10 (10D) sections of the income tax act. For other details, read policy document carefully.

Write all your requirements for the kids and analyze before taking a policy. Decide on the amount after totaling the needs along with the inflation probability. Choose the policy that suits these. It is better to take policy on the kid’s name if possible. If we get seriously ill or something happens, kids will be paid the money. Since life is unpredictable, it is best to have such policies in place for your lovable children.