6 days ago

Child Insurance Plans Target Education and Marriage Costs in 2026

A child insurance plan helps parents save money for important future costs.

These costs can include college and a wedding.

The parent pays premiums while the child is the beneficiary.

If the parent dies, a premium-waiver feature may allow the insurer to continue the plan.

Some plans pay money at several education milestones.

Others provide a larger payment later for marriage expenses.

Guaranteed plans are more predictable, while market-linked plans can rise or fall.

Parents should choose a plan they can afford and compare the insurer's claim record.

The article also says parents should buy their own term insurance first.

Key facts

Primary goals: Education funding and marriage planning.
Key protection feature: Premium waiver after the insured parent's death during the policy term.
Education payout design: Milestone-linked instalments can cover expenses during the late teenage and early adult years.
Marriage payout design: A later lump-sum benefit may suit a flexible-date marriage expense.
Plan types: Guaranteed variants and unit-linked variants with market exposure.
Tax reference: Qualifying maturity benefits may remain exempt under Section 10(10D), subject to prescribed premium limits and prevailing conditions.
Insurer example: Aditya Birla Sun Life Insurance reported a 98.86% individual death claim settlement ratio for FY 2025-26, according to the article.

thehansindia.com · 6 days ago