1. Which insurance is best for a child?

Then best insurance for a child depends on your goals. Plans like child ULIPS and endowment policies offer both life coverage and savings, making them useful for education and other financial needs. Compare features such as premium waiver, maturity benefits, and flexibility to choose what suits your child’s future.

2. Where to invest lump sum amount for a child?

NRIs can invest lump sum amount in child ULIPS, endowment plans , term plans, etc. These insurance products provide long term benefits to the child in terms of savings, regular insurance cover and tax benefits. Choose investment option based on your comfort level regarding risk, how long your investment is, and the end goal of that investment e.g. education, marriage, etc.

3. Can NRIs buy child insurance plans online from India?

Yes, NRIs can buy child insurance plans online from India through the official websites of insurance companies. Just visit the website, apply online, follow the steps and buy child insurance for NRIs from anywhere in the world.

4. Do NRIs get tax benefits on child insurance policies in India?

Yes, just like other Indian residents, NRIs can also get tax benefits on child insurance policies in India. They can claim deductions under Section 80C for premiums. The death benefit will be tax-free under Section 10(10D) of the Income Tax Act. Additionally, the maturity benefit is also exempt from tax under Section 10(10D), provided the premium paid does not exceed the prescribed limits in relation to the sum assured.

Child Insurance Plans for NRIs in India

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Financial protection for education, health, and marriage
Life cover for the parent
Premium waiver in case of parent's death
Maturity benefits paid to child even in the parent's absence
Tax benefits under Indian tax laws
Support for important life events even when living abroad
Types of Child Insurance Policies Available to NRIs

There are many types of child insurance plans available in India for NRIs. Each plan comes with different features to meet your child’s future needs. You can choose a plan depending on your goals, budget, and risk level.

Here are the types of child insurance for NRI:

Child Education Plans
Child Term Insurance Plans
Child Money-Back Plans
Single Premium Child Plans
Child based ULIP Plans
Child Endowment Plans

Each of these plans helps build a strong foundation for your child’s future.

Child Education Plans

Child education plans are savings plus life insurance plans. These are made to help you save money for your child's studies in India or abroad. The plan pays a lump sum or regular payments during key school or college years. If something happens to the parent, the plan continues without premium payments, with inbuilt wavier of premium rider feature available in most of the plans. This way, your child's education does not stop. These plans also offer tax benefits and maturity amounts to support big expenses like college fees or living costs.

Child Term Insurance Plans

Focuses on life coverage for the parent, offering financial protection in their absence
If the parent passes away, the child receives the sum assured as financial support
No maturity benefits are included, making it a pure protection plan without savings
Premiums are usually lower than savings-based plans, making it budget-friendly
Simple to understand and easy to manage, suitable for first-time policy buyers
Suitable for those whose goal is protection, not wealth building

Child Money-Back Plans

Offer guaranteed^* payouts at key milestones like school, higher studies, or other needs
Provide regular payout at fixed intervals to manage big expenses , depending on policy terms and conditions.
Ensure financial support even if the parent passes away during the term
Provide life insurance cover for the parent
Final maturity benefit paid at the end of the policy term
Help with financial planning while offering peace of mind for NRI families

Child based ULIPs (Unit Linked Insurance Plans)

Child based ULIPs combine life insurance with a market-linked investments. They allow you to invest in market linked funds like equity, debt, or balanced funds. The returns from ULIPs depend on the performance of the chosen funds. These plans have life cover and also allow you to accumulate wealth for your child's future. If the parent dies, the plan will still continue, and the insurer may (depending upon conditions) waive off future premiums, through wavier of premium feature usually present in most plans. At maturity, the total fund value will be paid, helping with the child's education or other needs.

Child Endowment Plans

Child endowment plans provide guaranteed* returns with life insurance. These plans provide a safe way to save for your child's future. Child endowment policies offer guaranteed* returns and may include declared bonuses. Upon the death of the parent, the child will receive the sum assured opted under the plan. These plans are a safe option for those who want low risk and guaranteed* stable returns over the long run.

Choosing the right NRI child insurance plan is a big step for any parent staying overseas. It helps you prepare financially for your child’s education, health, and future dreams. With many plans available in the market, it is important to take your time and compare them carefully. Don’t rush into buying the first policy you see. Instead, think about your goals, income, and how long you plan to stay abroad. Look at what each plan offers in terms of savings, protection, and flexibility. If you are still wondering how to choose child insurance that best fits your needs, here are the factors to consider:

Coverage and Benefits

Check the plan’s features carefully. Look for payouts during key milestones like school or college years, life insurance coverage for the parent, a premium waiver in case of death and whether the maturity amount will be enough to meet future expenses. A good plan will offer both protection and enough funds for your child’s important life goals.

Flexibility

Flexibility is key when you are living abroad. Choose a plan that lets you pay premiums monthly, quarterly, half-yearly, yearly or single lump sum payment Also, check if you can opt for increasing or decreasing term plans, switch funds (in plans like ULIPs), pay top-up premiums for ULIPs, etc. This helps you stay prepared if your income or life situation changes.

Returns on Investment

If you are looking for long-term savings, ULIPs or money-back plans are good options. These offer a mix of life insurance with market-linked returns. For lower risk, you can go for endowment or guaranteed^* return plans.

Claim Settlement Ratio

This is the percentage of claims that the insurance company has settled out of the total claims received in the past year. A high claim settlement ratio means the insurer is trustworthy and will likely process your claim smoothly. This is especially important for NRIs who may not be present in India during claim time.

Tax Implications

Most child insurance plans offer tax benefits under Section 80C of the Income Tax Act. You can claim deductions on the premium paid. Also, the payout or maturity amount is tax-free under Section 10(10D), subject to conditions. This helps you save money while securing your child’s future.

Assumed investment returns on 35^th Policy Year	CAGR^#
₹ 1,21,80,398	8%^#
₹ 38,74,832	4%^#

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