As parents, we want the best for our children — including financial security. Insurance companies offer various child insurance plans that promise to secure your child’s future education and needs.
But here’s the important question: Do children really need life insurance? In most cases, the answer depends on whether you are looking for pure protection or a mix of investment and savings.
Types of Insurance for Children
| Type | Purpose |
|---|---|
| Child Education Plan | Savings + insurance to fund higher education. |
| Child ULIP | Market-linked investment + life cover. |
| Whole Life Plan for Child | Life cover for child + maturity benefits later. |
Why Most Experts Say No to Pure Life Insurance for Kids
- No Income to Protect: Life insurance replaces income — children don’t earn.
- Better Alternatives: Term insurance for parents + separate investments for the child’s future.
- High Charges: Many child plans have high fees compared to mutual funds or PPF.
When Child Plans Can Make Sense
- You want a disciplined savings mechanism for a long-term goal like higher education.
- You prefer low-risk guaranteed return plans over market investments.
- You want insurance that waives premiums if the parent dies (ensuring funds keep growing).
Case Example
Meena considered a ₹20 lakh child plan but instead took a ₹1 crore term plan for herself and invested in a SIP for her son’s education. When she passed away unexpectedly, the term plan payout fully secured his future without the limitations of a child insurance policy.
Best Practice in 2025
- Focus on protecting the earning parent’s life first.
- Use term insurance + mutual funds/PPF for the child’s goals.
- If choosing a child plan, read charges, returns, and rider benefits carefully.
Why It Matters
Insurance is for income protection, not emotional comfort. Ensuring parents are adequately insured and children’s future goals are well-funded is a better strategy than buying unnecessary life cover for minors.
Secure your life first, invest for your child’s future next. Share this eBharat.com guide so more parents make smarter insurance choices in 2025.
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