Good child insurance plans in India?

I have a 2-yr old daughter. Are there any good child insurance plans from LIC or the private insurers? I am looking at the traditional schemes, not the unit-linked ones.

“I am not interested in ULIP schemes”. So, please don’t suggest those. Thanks.

4 Replies to “Good child insurance plans in India?”

  1. As a rule children are never insured. Only earning member of a family is insured. If you want to save for your daughter invest in good MFs. Now is a good time for investment . For insurance purpose always buy a pure term plan for yourself.

  2. Well I can see despite your dis-interest in ULIPs / MFs all above answers say the same.

    As far as children plans are concerned, in traditional schemes, LIC is by far ahead of the rest. I mean mathematically 4-5 times better.

    Especially in case of children plans, the rates of bonus declared by LIC is highest. Just have a look at Komal Jeevan (table 159) plan from LIC which is “Money back” plan with GUARNATEED BONUS rates. The rate is Rs. 75 per 1000 sum insured. Effectively, the yield can touch 10% – guaranteed !

    However, as good a plan it is, having only one plan, may not suffice your need. A plan has to be designed in a manner that suits you.

    I am an insurance consultant from Mumbai. Contact me for further help.

    [email protected]

  3. Hi, My advice is not to go for any traditional schemes. The returns of traditional schemes are a shocking 5-6%. Consider the inflation which is around 11% so your net return would be in the negative. You will have to decide if you want insurance or investment. Both of them are totally different. You can opt for a good mutual fund scheme by investing on monthly basis and stay invested for a long time say around 10 years. If you are ready to go for traditional plans then there is no reason why u shouldnt go for ULIPs. It will give better returns then traditional plans.

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