As a parent, being there for your child and enabling them to achieve their dreams, matters! That’s exactly what a good ULIP child investment plan does for you – provide the financial protection your child needs, with or without you being around. With a ULIPs at Bajaj Markets, enjoy benefits that include free life cover, tax exemption, and the liberty to invest in funds of choice.
A ULIP child plan ensures that inflation or unforeseen events do not hinder your child’s future. As a parent, being there for your child and encouraging them to achieve their dreams is what matters the most! That’s exactly what a good ULIP child investment plan does for you. It provides the financial protection that your child needs even in your absence.
The ULIP child plans available on Bajaj Markets are designed to specifically cater to your child’s education. In this child education plan, you get the dual benefit of saving and protection. You can invest in this policy based on your child’s educational needs, your financial capability, and other monetary goals, and use the funds through partial withdrawal. Moreover, you also enjoy ULIP tax benefits on such investments.
The following are some salient features of the ULIP child plans available on Bajaj Markets.
Financial Security for Children
The policy can be taken either by parents or grandparents to secure the financial future of their children or grandchildren.
The term for a ULIP child plan is generally 10-25 years with a lock-in period of 5 years.
Since this child plan is a ULIP investment, a part of the premium goes for life insurance coverage; the remaining amount is invested in market-linked funds.
The policy offers two payouts:
The Sum Assured is paid upon the death of the insured
The fund value is paid upon the maturity of the policy
So, if the parent(s) dies or a critical illness renders him/her incompetent to provide financially for the child, the policy will:
Pay the Sum Assured to the child nominee
Waiver of future premiums
Pay fund value upon maturity
Besides securing your child’s financial future, the policy also offers ULIP tax benefits to the parent(s). They can claim tax deductions on the premium paid under Section 80C of the old income tax regime. The payout upon death/maturity is also tax-free under Section 10(10D) of the Income Tax Act, 1961.
A ULIP child plan is purchased with the long-term intention of securing your child’s financial future. The policy works similar to that of any ULIP investment. A part of the premium paid towards the child plan is used for life insurance cover and the remaining amount is invested in market-linked funds.
In case the insured (who is a parent or grandparent of the child) dies, the insurer pays the sum assured amount under the life insurance component of the policy. Upon maturity, the policy pays the fund value under the investment component. That way, the child receives two kinds of payouts, one in the event of their parent’s death and another after policy maturity.
When buying ULIP child plans with us at Bajaj Markets, check your eligibility beforehand. Also, ensure that you have the required documents handy.
Eligibility Criteria for ULIP Child Plans
Documents Required for ULIP Child Plans
You will be asked to submit the following documents:
Child Education & Insurance Plans: Buy Bajaj Allianz Child Plans available on Bajaj Markets to secure your child's future and education. ULIP Child Plans offer tax benefits, life insurance and market linked returns. Get a free quote today!
As we know, the life insurance component of your ULIP child plan provides a predetermined sum assured to the beneficiaries after your death. However, the returns on the investment component can be tricky to calculate. To make the math simple, you can use the ULIP calculator available on Bajaj Markets.
The returns depend on the premium amount and tenure of your ULIP child plan. Follow the steps below to calculate the same.
Go to the ‘ULIP’ section on Bajaj Markets and choose the ULIP calculator.
Enter the premium amount and the frequency of payments (monthly, quarterly, annually, lump-sum).
Choose the tenure of your ULIP child plan.
Select the funds in which you want to invest your money (debt, equity, or hybrid)
Enter personal details like age, gender, medical records, etc.
Once you submit these details, the online ULIP calculator will estimate the returns accumulated over time.
Further, we have discussed in brief about child plans in India.
Child plans are designed to cover the financial future of your children, whether you are around to provide for them or not. In India, we’ve three types of child plans.
ULIP Child Plans
ULIP child plans provide dual benefits. A part of the policy premium aims to protect your children like a standard child education plan while the remaining is invested in market-linked funds. Because of this, your child receives dual payouts, one in the event of your death and another on policy maturity.
Child Savings Plans
Having a child savings plan eliminates the risk of market-linked investments. You either pay regular premiums or for a limited period to receive guaranteed payouts by the end of the policy term. These are further classified into two categories:
Depending on your affordability and convenience, you can choose either of them.
Traditional Child Endowment Plan
A child endowment plan is nothing but a traditional life insurance policy that offers security and savings to your children. The policy allows you to fulfil your child’s dream without having to face any financial setbacks. The premiums are invested in debt funds decided by the insurer. The maturity amount is determined based on the fund performance along with bonus payable (if any).
To understand how much you should invest in a child plan, it is imperative to know the importance of quality education for your children. Having a good educational background will allow your child to start a career and earn a livelihood for themselves in the future, thereby making them financially independent.
But before you decide the amount to invest in these policies, ask yourself the following questions:
What are your future financial goals?
What is your monthly income?
What are your expenses?
Do you have any savings?
Do you have any insurance plans?
Answers to these questions will help you make an informed financial decision for your child’s future.
Child plans in India come with an intrinsic benefit known as waiver of premium (WoP). The benefit comes in handy if you (the parent) passes away due to an unfortunate turn of events. During such dreadful and emotional times, be rest assured that your child plan will remain active as the insurer covers the remaining premiums.
Nothing compares to the security of your child’s future. While a child plan helps you do that, the following tips will encourage you to choose the best policy.
It is best to start investing in your child’s future as early as possible. Doing so helps you build a substantial amount over time, giving your children more financial security. Many child plans provide milestone benefits to children when they turn 18, finish graduation, and so on. Moreover, investing in a child plan early in life, say when your child is 5 or 10 years-old, might allow you to pay off their tuition fees for higher education without taking any loan.
Factor in Inflation
Whether you are investing in a child plan or otherwise, it is essential to factor in the inflation rate. The cost of education and medical expenses are enormous. If this factor is accounted for when investing in the best child plan, you will be able to secure your child’s financial future more appropriately.
Choice of Funds
While child savings plans only allow you to invest in debt funds, ULIP child plans give you an option. A part of the ULIP child plan premium is invested in market-linked funds of your choice. These funds can be debt, equity-oriented, or a combination of the two. Depending on your risk appetite, you can proceed to invest in a fund of your choice.
Typically, people with a low-risk appetite choose to invest in debt funds, and those with a high-risk appetite invest in equity funds. So, be mindful of evaluating the risk involved with both and make an informed decision when choosing the funds.
Filing claims was never so simple. Just follow these steps and you’re done!
The ULIP child education plan has helped me secure my child’s future. Now, I don’t have to worry about financing my kid’s higher education. All thanks to ULIP child plan.
By purchasing the ULIP child plan I could also provide life insurance cover to my child. Thanks to Bajaj Allianz ULIP Plan, my child will be able to realize his dreams.
I am happy to have purchased ULIP child plan available on Finserv MARKETS. The application process was smooth and the documents required were minimal.
When I was looking for an investment option to support my child's further educational expenses, I came across the child education plan on Finserv MARKETS. The plan was an ideal investment tool and getting it through the platform was also very easy.
When my first child was born, my friend suggested to me the ULIP Child Plan. Benefits like option to customize my investment as per my risk appetite and flexibility to switch funds caught my eye. Thank you Finserv MARKETS.
When my child turned 15, I decided to keep enough funds for his higher education and future expenses. This is when I came across the child insurance plan which not just gave me an opportunity to gain higher returns but also save on taxes. All I had to do was, visit the Finserv MARKETS platform and follow the process and that was it!
With the rising expenses, my child’s education expenses kept worrying me. This is when, I came across ULIP child plan online. The plan would help me save up for my child’s future expenses and manage inflation better. Awesome product!