OneInsure Blog

Child Plans

While our parents did work hard for their children, you’d have to agree that parenting has become tougher in the present generation. And this is especially so due to the much higher sums parents today have to spend on basics like education, healthcare, entertainment, and the daily expenditures of raising a well-rounded child.

It doesn’t take rocket science to realize that disciplined savings are the only way to meet the rising expenses of bringing up a child. Old-fashioned savings schemes are never going to be enough.

According to a study by ET Wealth in 2011, it costs about ₹54.75 lakhs to raise a child from birth until s/he is 21 years of age. Factoring in inflation, if your child is born in 2015, this figure will easily touch ₹75 lakhs. If s/he is born in 2020, we are looking at 1+ crore. And this is for a single child for education alone, mind you.

We hope you realize the strain this is going to put on your finances. However, this is not an option as a parent. Therefore, at OneInsure, we suggest householders to invest in an instrument that merges two financial strains (child-raring expenses + tax pay-outs) into a smart investment tool that takes a huge burden off your shoulders as a parent.

Smart parenting = Smart investments + Tax savings

With a child plan, you can be rest assured that major expenses like education and even marriage is taken care of to a great degree. With a small investment of Rs 8,000 – 9,000 a month in a child plan, you can avail a maximum of Rs 21 – 22 lakhs to meet the rising education cost at different intervals of your child’s education.

Some new-age plans come with the money-back option, where the insurance company would pay around 20% of the sum assured when s/he turns 18 years of age, another 20% after two years, and so on. You can also opt for endowment policies, where a lump sum amount is paid at maturity along with bonuses.

One of the benefits of child insurance plans is its waiver-of-premium feature. If the policyholder (parent) were to pass away, all the future premiums will be taken care of by the insurance company and the policy will continue to be active.

How Does a Child Plan Save Tax?

Investments made under a child plan are Section 80(C) compliant. This means that you can claim tax exemptions up to Rs 1,50,000 when you invest in a child plan. Along with taking care of your child’s education and other major expenses, a child plan ensures your hard-earned money is saved too – a win-win situation for any parent!

M – 86559-86559 | E –



  • By clicking on the "GET A CALL" button, I accept the terms and conditions & authorize OneInsure representatives to contact me (via Call/SMS/Email).