Child Plans

You've been watching your child grow, hitting milestone after milestone, and with each passing day, you're reminded of the dreams and aspirations you hold for their future. But today, just attempting to fuel those dreams into reality ends up requiring more than just emotional support and encouragement. It demands prudent financial planning, especially with education costs rising faster than ever and career paths becoming increasingly diverse and demanding. If not already, you should consider getting a decent child insurance plan right about now if you are planning to have kids or have just become a parent. The right plan can make sure your child's dreams stay protected in these inflated economic conditions.

  • Ensures your child’s future stays protected even in your absence through premium waiver
  • Offers payouts at key education milestones to support growing needs
  • Provides flexible investment options to match your goals
  • Offers tax benefits under Sections 80C and 10(10D)

Know more about our Child Plans

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What is a Child Plan?

A child plan is a financial product for securing your child's future, combining the attributes of savings with comprehensive life insurance coverage. This approach involves setting aside a portion of your income regularly, ensuring your child's dreams remain unshaken even if you're not around to guide them. Insurance companies then invest these savings in carefully selected portfolios, designed to grow steadily over time.

What distinguishes a child plan is its child-first approach. Should anything unexpected happen during the plan's tenure, your beneficiary receives the assured amount, and more importantly, most policies continue to be in force if the premium waiver benefit is available with the plan. This ensures your child's education and future plans stay on track, regardless.

Upon maturity, child plans also provide returns that may help tackle the challenge of rising education and any costs that may arise in the future. This reliability makes them particularly appealing if you're looking to secure your child's future without taking undue risks.

    How does a Child Plan work?

    1

    Plan and Coverage

    Start by deciding how long you want the policy to run and the amount of coverage you need to secure your child’s future. This defines your policy term and sum assured.
    2

    Premiums and Premium Payment Term

    Make regular premium payments — monthly, quarterly, half-yearly, or annually — as per your chosen plan. These contributions build your child’s education fund while keeping life cover active.
    3

    Plan Benefits

    If something happens to you during the policy term, all future premiums are waived, and the policy continues. On maturity, your child receives the accumulated benefits to support their education and future goals.

    Why consider getting a Child Plan?

    The decision to invest in a child plan goes beyond just saving money - it's about creating a robust financial foundation for your child's future. Let's explore what makes these plans essential for your parenting journey.

    Education Costs Let's address the elephant in the room - inflation. Education costs are rising at an alarming rate of 8-10% annually. A degree that costs ₹10 lakhs today might demand a fortune or more when your child is ready for college. Child Plans are specifically engineered to outpace inflation as much as possible, ensuring your child's education fund grows faster than rising costs. Medical education costs are even steeper, with current costs around ₹25-30 lakhs potentially crossing ₹50 lakhs in the next decade. SUD Life child plans help you stay ahead of this inflation curve through systematic savings and compound growth. The structured investment approach ensures your money grows steadily, helping you build the substantial corpus needed for quality education.

    Financial Guarantee Let's talk about securing your child's future against unexpected events. Sure, you're saving diligently today, but what happens if you're not around tomorrow? That's where a premium waiver benefit can come in handy – a feature that sets most child insurance plans apart from other typical life insurance plans. If anything happens to you, all the future premium gets waived, and remarkably, your policy keeps working exactly as planned. Your child's education fund continues to grow, bonuses keep adding up, and every promised benefit stays intact.

    Disciplined Approach We all know how easy it is to put off saving for the future. There's always another expense, another priority. By committing to regular premium payments, you don’t just save – you build a guaranteed education corpus. The best part? These aren't random savings that might get used elsewhere. Your premiums work systematically to create a substantial corpus, growing through guaranteed additions and potential bonuses. As education costs keep climbing year after year, this structured approach to savings becomes valuable over time.

    Tax-Efficient Growth Every premium you pay reduces your taxable income under Section 80C of the Income Tax Act of 1961 – that's tax savings right there. But here's the kicker - when your policy matures, everything you/your beneficiary receives – the sum assured, bonuses, guaranteed additions – all of it comes to you completely tax-free under Section 10(10D) of the same act. This means more funds available when your child needs it for their education.

    Why do you need a Child Plan?

    You’re scrolling through your phone, watching a cute video of a dad helping his kid with homework, when an ad about child plans pops up. Your instinct? Swipe away. After all, your child’s still young, school’s just started, and college feels like a lifetime away.

    But here’s the catch, that lifetime goes by faster than you think. Education costs are soaring, dreams are crossing borders, and life, well, can be unpredictable.

    Let’s see why starting early with a child plan could be one of the smartest moves you make as a parent.

      Why Consider a Child Plan?

      The decision to invest in a child plan goes beyond just saving money - it's about creating a robust financial foundation for your child's future. Let's explore what makes these plans essential for your parenting journey
      • Education Costs
      • Financial Guarantee
      • Disciplined Approach
      • Tax-Efficient Growth

      Education Costs

      The decision to invest in a child plan goes beyond just saving money - it's about creating a robust financial foundation for your child's future. Let's explore what makes these plans essential for your parenting journey. 

        Types of Child Plans

        Look, each type of a child insurance plan has its own unique approach to securing your child's future, and understanding these differences is crucial for making the right choice.

        Traditional Child Endowment Plans

        Traditional child endowment plans focus on one thing: certainty. They help you create a guaranteed education fund with predictable returns. Your premiums are invested in secure instruments that prioritise capital protection. You know from day one how much you will receive and when you will receive it. So, if you are planning for higher education 15 years away, you can align guaranteed payouts with admission timelines. Returns are conservative but strengthened through guaranteed additions and, in participating versions, bonuses that compound once declared. You also receive tax benefits under Section 80C and tax-free benefits under Section 10(10D) of the Income Tax Act of 1961.

        • 01. Traditional Child Endowment Plans

        • 02. Child Money Back Plans

        • 03. Child ULIPs (Unit Linked Insurance Plans)

        • 04. Participating Child Insurance Plans

        The Nuts and Bolts of Child Insurance Plans

        Let's dive into why it's such a good idea and break down the child insurance benefits you can expect. Click to expand and learn more

        Premium Payments

        Maturity

        Tax Benefits

        Claims

        Revival

        Bonuses

        Riders

        Policy Loans

        Policy Transfer

        Policy Administration

        Family Financial Communication

        Milestone Benefit Utilization

        Contingency Planning

        Features of SUD Life Child Plans

        Child plan

        Premium Waiver

        Premium waiver keeps your child’s plan running even after death or disability. No premiums needed, benefits continue and the future stays secure.

        Education Benefit Structure

        SUD Life child plans give stage-wise payouts for school, higher studies and pro courses with bonus support for extra expenses.

        Investment Options

        SUD Life child plans offer ULIP and other options so you can choose growth or predictability and adjust your strategy as your needs change.

        Long-term Protection

        The value of SUD Life child plans comes from features working together: premium waiver for continuity, stage wise & education payouts

        Making Your Choice

        SUD Life child plans offer premium protection, education based benefits and investment growth. Know the features and choose what fits your goals.

        How to File a Claim with SUD Life?

        When the unfortunate happens, filing a claim shouldn't add to your stress. Here's a step-by-step guide through SUD Life's claim process.

        • Step 1: Claim Intimation

          01.

        • Step 2: Claim processing

          02.

        • Step 3 : Decision and Payment

          03.
        Step 1: Claim Intimation

        First, inform SUD Life about the claim as soon as possible after the event. You have multiple ways to do this:

        • Visit the SUD Life website
        • Click on "Claim Intimation" link
        • Fill out the online form with required details
        • Use the branch locator on SUD Life website
        • Visit your nearest branch personally
        • Submit claim intimation form with documents
        • Call 1800-266-8833
        • Available 9:00 AM to 7:00 PM (Monday to Saturday)
        • Share details with customer service
        • Send details to customercare@sudlife.in
        • Include all relevant claim information
        • Attach required documents

        Send documents to: Star Union Dai-ichi Life Insurance Company Limited 11th Floor, Vishwaroop I.T Park, Plot No. 34, 35 & 38, Sector: 30A of IIP, Vashi, Navi Mumbai – 400 703

        Death Benefit

        Death Benefit in Child Insurance Plans

        Comprehensive Protection Approach- Let's talk about something that's not easy to discuss but vital to understand - how child insurance plans protect your family if something unexpected happens. These plans stand out in how they handle death benefits, offering layers of protection that keep your child's future secure even in your absence.

        If and When a Parent Passes Away

        In SUD Life Fortune Royale’s Child Future Secure option, if the paying parent passes away, the death benefit is the higher of 10.5X the annualized premium or 105% of total annualized premiums paid. The premium waiver then keeps the policy active with no future payments while bonuses, guaranteed additions and the original maturity value continue unchanged.

        Child Insurance Plans 101 - Complete Guide

        • 1. How Education Has Changed
        • 2. The Real Cost of Education Today
        • 3. Today's Career Landscape
        • 4. The Reality of Education Inflation
        • 5. Planning Fund Access
        • 6. Growth and Protection Strategies

        1. How Education Has Changed

        Let's talk about how education has changed. It's not just about school fees anymore - your child's educational journey starts much earlier than you might think. Even before formal schooling begins at age 5, you're looking at pre-school costs and early development programs that can take a significant bite out of your wallet.
        Think about middle school - around ages 11-13. This is when most parents start noticing their education expenses climbing. Your child might need extra tutoring or special programs. Then comes high school, especially grades 10-12, and that's when things really start to add up. Between competitive exam coaching, career counseling, and specialized study materials, you're looking at serious financial commitments.
         

        How to pick the right Child Plan?

        A strong child insurance plan should offer more than just basic coverage. Look for comprehensive benefits that protect your child's future from multiple angles. The plan should combine life coverage with systematic savings, ensuring your child's education stays protected even if you're not around. Premium waiver benefits are particularly crucial but should not be the only feature you look for in a policy.

        Child Insurance Plans with Flexible Fund Access

        Your child's education journey will have different financial needs at different stages. Choose a plan that understands this reality. Look for features that let you access funds when needed, whether for sudden educational opportunities or unexpected requirements. The best plans offer structured payouts that align with education milestones while maintaining flexibility for changing circumstances.

        Insurer selection guide

        The insurance company's reputation deserves careful consideration. Research their claim settlement history, financial stability, and customer service quality. A strong insurer ensures your policy benefits are secure and accessible when needed. Check how long they've been in business and their approach to handling education-related claims.

        Premium Payment Options in Child Insurance

        Life brings changes, and your child plan should adapt accordingly. Good plans offer various premium payment options - monthly, quarterly, half-yearly, or annual modes. They should also allow you to adjust payment terms if your financial situation changes, ensuring your child's future stays protected regardless of temporary setbacks.

        Investment Returns in Child Insurance Plans

        Finally, consider how your chosen plan helps your money grow. Whether through guaranteed additions, bonuses, or market-linked returns, the plan should help your savings keep pace with rising education costs. Some plans offer different investment strategies based on your comfort with risk, helping you balance growth with security.

        When To Buy a Child Plan?

        The good thing about timing child plans is that - each entry point opens up a unique set of opportunities. Read more to break down these windows and see what they mean for your child's future.

        Day Zero

        Your newborn has just arrived and between feedings and sleepless nights, you're already thinking about building a strong foundation for your child. Starting early works in your favour because insurers reward early planners with competitive premiums that stay fixed for life. With a long runway ahead, you can be bold with investment choices. Time helps you ride out market volatility and lets your bonuses grow steadily in plans like SUD Life Fortune Royale. Your premiums also feel lighter because you are spreading them over a longer period. You also get the flexibility to choose your strategy. Start aggressive, switch to steady growth when needed. The choice is yours and time is on your side.

        • 01. Day Zero

        • 02. Early School Years (Ages 4-10)

        • 03. Teenage Years

        Understanding Different Family Situations

        • 1. Planning as a Single Parent
        • 2. Business Families and Education Planning
        • 3. International Education Goals

        1. Planning as a Single Parent

        Being a single parent comes with its own set of challenges when planning for your child's education. Every rupee counts because you're working with a single income. That's why the protection features in insurance plans become so important - you need to know your child's education is secure no matter what happens.

        Understanding Child Insurance Policy Term (Tenure)

        The way policy terms are structured in child insurance can significantly influence your planning outcomes. You are taking a major step and it;s critical for you as a parent to be completely aware of the policy you will be putting your hard-earned funds into
        • 1. How Child Policy Terms Work
        • 2. Understanding Premium Payment Options
        • 3. Policy Term Considerations
        • 4. Payment Flexibility
        • 5. Long-term Planning

        1. How Child Policy Terms Work

        Policy terms in child insurance plans usually stretch between 10 to 25 years, depending on when you start. For instance, SUD Life’s Fortune Royale's structure provides an interesting perspective on how these terms play out. The plan pairs premium payment periods with specific policy terms - a 5-year premium payment period connects with either 11 or 15-year policy terms, while 7-year payments link to 15 or 21-year terms. For those considering longer commitments, 10 or 12-year payment periods can extend coverage up to 25 years.

        These combinations aren't arbitrary. Many parents find it helpful when policy maturities coincide with their children's higher education or future needs. It's worth noting that education expenses often peak during college years, making the timing of policy maturity a key consideration. 

         

          Why Start Child Insurance Planning Early?

          Time

          Starting a child insurance plan early isn't just about saving money - it's about creating opportunities. The earlier you begin, the more time your investment has to grow through guaranteed additions and potential bonuses. Think about education costs - engineering degrees that may cost ₹15 lakhs today might need ₹40 lakhs in 15 years. Planning early can help you stay ahead of this inflation curve.

          • 01. Time

          • 02. Building a Stronger Fund

          • 03. Protection

          • 04. Freedom

          • 05. Financial Lessons

          Child Insurance Plan Myths Busted

          01.Early Start 

          Many parents think they should wait until their child is older to start planning. The truth is, starting early gives you significant advantages. The earlier you begin, the lower your premiums stay, and the more time your money has to grow along with your children. Early planning means more flexibility in choosing how your benefits align with your child's future needs. 

          02.Bad Luck
          03.Policy Continuation
          04.Money Access
          05.Education Only
          06.Low Returns
          07.Too Complex
          08.Better Alternatives
          09.Limited Control

          Child Insurance Plan Benefits and Claim Structure

          Read on the right to know more >>>

          Base Benefits

          Look, your maturity benefits are the grand total of everything your policy has built over the years. In plans like SUD Life Fortune Royale, this isn't just one simple payout - it's a combination of different benefits that have grown over time.

          Sum Assured on Maturity

          Your Sum Assured on Maturity isn't just a random number - it's calculated very specifically for your situation. Let me break this down with a real example - if you're a 40-year-old parent choosing a 7-year payment term with a 15-year policy, Fortune Royale uses a factor of about 1,058 for every 1,000 rupees you pay annually. What does this mean for you? Well, if you're paying ₹100,000 annually, you can calculate your base benefit right at the start. These numbers aren't hidden away in fine print - they're part of your policy document, so you know exactly what you're working towards.

          Bonus Benefits

          Here's where your benefits can really take off. In participating plans, you get two shots at bonuses. First, there are yearly reversionary bonuses - these are extra amounts that might be added to your policy each year based on the insurance company's performance. Then there's the terminal bonus - think of it as a potential final boost to your maturity amount. What makes these bonuses special is that once they're declared, they're locked in. They become just as guaranteed as your base benefit. While you can't count on future bonuses (they depend on company performance), any bonus you've already received is yours to keep.

          How Benefits Work Together

          The real magic happens in how all these pieces work together. Your base benefit provides the foundation, guaranteed additions build on that steadily, and bonuses add extra layers of growth. Each premium you pay contributes to this growth structure. What makes this particularly valuable for child education planning is how these benefits can align with different education stages. The maturity timing can coincide with higher education needs, while the accumulated amount helps manage those significant expenses.

          Guaranteed Additions

          Now, this is where your policy starts to grow beyond the basics. Every premium you pay triggers Guaranteed Additions to your policy. The interesting part? These additions become more attractive the longer you stick with the plan. If you opt for a longer premium payment term, your guaranteed addition rates go up. It's like the policy rewards you for taking a longer view of your child's education planning. These additions aren't maybes or might-bes - they're guaranteed, just as the name suggests.

          Premium Waiver in Child Plans

          1. Understanding Premium Waiver Protection Child insurance plans typically include a crucial feature called premium waiver benefit, which extends beyond basic death protection. This benefit ensures your child's education funding continues even in challenging circumstances.

          2. What Triggers Premium Waiver Benefit? Most child plans activate the premium waiver benefit in two key situations: ● In case of the parent's death during the premium payment term ● If the parent faces total and permanent disability due to accidents

          Each insurance provider may define these conditions differently, so it's important to check your policy's specific terms.

          Benefit Payout Structures

          • Design Philosophy
          • Early Education Support
          • Higher Education Funding
          • Flexibility in Disbursement

          Design Philosophy

          Child plans offer thoughtfully designed payout mechanisms that align perfectly with your child's educational journey. The regular payout structure mirrors the natural progression of education expenses, ensuring money is available when needed most.

            Risk Coverage and Policy Transfer in Child Insurance

            Let's explore how child insurance plans handle coverage for young children - it's quite different from regular insurance. These plans have specially designed rules to protect children from the very beginning.

            Coverage for Young Children

            For children under five years old, insurance companies take a thoughtful approach to starting coverage. Your policy might begin in one of two ways: ● Either one day before your policy completes two years ● Or when your child turns five years old Whichever comes first becomes your coverage start date. For children who are already five or older when the policy starts, things are simpler - their coverage begins right away with the policy.

            • 01. Coverage for Young Children

            • 02. Policy Handover at Maturity

            Reviving Your Child Insurance Plan and Understanding Tax Benefits

            Financial ups and downs happen to everyone, and sometimes premium payments might get missed. Let's understand how you can revive your policy and what tax benefits these plans offer.

            Revival Options

            Insurance companies understand life's challenges. That's why they give you a generous five-year window to restart your lapsed policy. If you've missed some premiums, you can bring your policy back to life by paying the pending amounts plus some interest.

            • 01. Revival Options

            • 02. How Revival Works

            Tax Benefits of Child Plans

            • Premium Payments and Tax Savings
            • Tax-Exempt Benefits at Maturity
            • Plan it Well

            Premium Payments and Tax Savings

            Your premium payments can help reduce your tax burden. Under Section 80C of the Income Tax Act of 1961, premiums you pay qualify for tax deductions. This makes your investment more cost-effective, as you're saving on taxes while securing your child's future.

              Key Limitations and Exclusions in Child Insurance Plans

              • Important Policy Restrictions to Know
              • First Year Considerations
              • Medical Coverage Details
              • Special Occupation Considerations

              Important Policy Restrictions to Know

              Before you sign up for a child insurance plan, let's understand what these plans might not cover. While they offer extensive protection, certain situations have specific limitations or aren't covered at all.

                How SUD Life Fortune Royale Works?

                • Sharma Family
                • Kumar Family
                • Mehta Family

                Sharma Family

                Priya Sharma, 30, chose SUD Life Fortune Royale's Child Future Secure option for her 2-year-old daughter:

                • 12-year premium payment term

                • 25-year policy term with Child Future Secure option

                • Monthly premium mode of ₹8,000

                Why This Strategy Works: The Child Future Secure option gives Priya premium waiver protection against both death and disability. The Child Future Secure option with a 12-year premium payment term gives Priya guaranteed additions of ₹4,000 annually for every ₹100,000 of annual premium she pays, plus potential bonuses after the premium payment term. The policy's education milestone payouts will align perfectly with her daughter's academic journey from school to post-graduation.

                  How to Buy a Child Insurance Plan Online

                  01.Define Your Child's Education Goals

                  Start by mapping out your child's education and future journey. Think about when they'll need funds - school admission, higher education, or perhaps overseas studies. Consider education inflation and timeline. Having clear goals helps determine how much coverage you'll need and for how long. 

                  02. Research Plan Features
                  03. Evaluate Insurance Companies
                  04.Check Eligibility
                  05.Prepare Documentation
                  06. Complete Online Application
                  07.Policy Issuance

                  Special Claim Situations

                  • Premium Waiver Benefit Claims

                    01.

                  • Education Milestone Claims

                    02.

                  • Maturity Claim Process

                    03.
                  Premium Waiver Benefit Claims

                  For Child Future Secure option:

                  • Additional documentation for disability claims
                  • Medical records required 
                  • Accident reports if applicable 
                  Icon for document edit
                  • Doctor's certification of disability 

                  7 essential steps to understanding child plans

                  Start Early

                  Starting a child insurance plan early isn't just good advice - it's smart financial planning. Beginning early means lower premiums and a longer time for your investment to grow. Think about college education - if you start saving during your child's primary school years, you're giving your investment enough time to build a substantial corpus for higher education

                  Future Economic Changes

                  Today's education costs won't be tomorrow's reality. When choosing a plan, consider how education expenses are rising faster than general inflation. A good child insurance plan should have features that help your investment grow enough to match or exceed education inflation. Consider plans that offer guaranteed additions and potential bonuses to help combat rising costs.

                  Master the Fine Print

                  Understanding your policy's terms and conditions is crucial. Each child insurance plan has specific features and limitations. Pay special attention to: ● When and how benefits are paid out ● Situations where coverage might be limited ● Conditions for premium waiver benefits ● Rules about fund withdrawals

                  Benefit Structure

                  Know exactly how your plan's payouts work. Many plans align benefits with your child's education milestones. Some offer structured payouts starting at age 18, while others provide flexibility in timing. Understanding this helps ensure the money is available when your child needs it most

                  Research and Compare

                  Take time to evaluate different plans. Each has unique strengths and features. Consider: ● Premium payment flexibility ● Guaranteed versus market-linked returns ● Premium waiver conditions ● Education milestone benefits ● Additional rider options

                  Know Your Access to Funds

                  Sometimes you need access to money before planned. Understand your plan's rules about withdrawals. If you're choosing a ULIP, know the lock-in period and partial withdrawal conditions. Good plans balance protecting long-term benefits while providing access in genuine emergencies.

                  Secure Your Child's Interests

                  Choose a trusted appointee who can manage the policy if something happens to you before your child turns 18. This person should understand both the policy's features and your child's needs. They'll be responsible for ensuring benefits are used as you intended for your child's education

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