As parents, we all want the best for our children, and ensuring their financial security is one of the top priorities. One way to achieve this is through child insurance plans.

These plans offer a combination of savings and protection for your child and can help you build a corpus for their future needs. Here’s what you should consider when choosing the best child insurance plan:.

1. Coverage Offered

The coverage offered by the child insurance plan is one of the essential factors to consider. You should look for a plan that provides comprehensive coverage, including death, disability, and critical illness.

The sum assured should be adequate to cover your child’s needs in the event of any unfortunate eventuality.

2. Premiums

Premiums are the amount that you pay regularly to keep the policy in force. You should choose a child insurance plan that offers affordable premiums while providing adequate coverage.

You should also consider whether the premiums are fixed or flexible and if there are any discounts available for early payment or long-term commitments.

3. Maturity Benefit

The maturity benefit offers a lump sum amount on the policy’s maturity date and is an essential factor to consider when choosing a child insurance plan.

The lump sum amount can help meet your child’s future needs like education, marriage, or any other expenses.

4. Policy Term

The policy term is the duration of the policy and is a crucial factor to consider when choosing a child insurance plan. You should choose a plan that provides adequate coverage for your child until they become financially independent.

Your financial goals can be a deciding factor in the policy term you choose.

5. Flexibility

A child insurance plan should provide you with the flexibility to change the policy features as per your changing needs.

Some of the factors you should look for include the flexibility to change the sum assured, increase or decrease premium, and change the coverage options.

6. Riders Offered

Riders are additional benefits that you can add to your child insurance plan to enhance the coverage. Some of the essential riders that you should look for include accidental death benefit, critical illness, waiver of premium, and hospital cash benefit.

You should choose a child insurance plan that provides riders that cater to your and your child’s needs.

7. Bonus and Discounts

The bonus and discounts offered by the child insurance plan can help you save money in the long run and increase the policy’s value.

You should look for a plan that offers regular bonuses and discounts that can reduce your premium and increase the policy’s maturity value.

8. Claim Settlement Ratio

The claim settlement ratio is the percentage of claims that the insurance company settles against the total number of claims received.

You should choose an insurance company that has a high claim settlement ratio as it indicates that the company settles claims promptly and efficiently.

9. Credibility of the Insurance Provider

The credibility of the insurance provider is an essential factor to consider when choosing a child insurance plan. You should choose a provider that has a good reputation in the market and is known for their prompt and efficient services.

10. Tax Benefit

A child insurance plan can help you save tax under various sections of the Income Tax Act. You should choose a plan that offers tax benefits that can help reduce your tax liability.

Choosing the best child insurance plan can be overwhelming. However, by considering the above factors, you can make an informed decision that meets your child’s financial needs.