Planning ahead for your child’s future needs such as higher education is extremely important and ensuring that you have the ability to fulfill those needs is even more critical. Child insurance is very handy for this purpose.

A very suitable option of child insurance is the Child Endowment Participating Insurance lasting up to age 18 with an option to buy a permanent life insurance policy without medical underwriting irrespective of your child’s health at that time. This policy which is especially designed to enable you to provide for higher education of your child and take care of his/her future needs at a time when prices become unbearable.


In order to qualify for the plan the child must be minimum 91 days old and maximum 13 years, and the maturity age is 18 years. At the time of maturity of the plan, the face amount plus accrued bonus, if any, is available on life insured’s survival to maturity. In case of the death of the life insured, there will be a refund of premiums plus interests along with accrued bonus, if any.

If you want to surrender the policy, you will get cash value as built in the policy. However, there will not be any cash value until three years premiums have been paid in full. Also, bonus is not declared for the first three years. At the time of bonus declaration you can choose the option of Paid in Cash Bonus declared by the company. Or you can opt for a lower sum assured for the remaining term of your child insurance policy or you can accept cash value by bank check.

When the insured children reach the age of 18, they will have the option to buy a permanent life insurance policy without medical underwriting irrespective of their health at that time. On maturity of the policy, the benefits payable under the policy shall automatically vest with them. Another advantage of the policy is that the life of the guardian of the child is also covered under the plan. This will ensure the policy continues even if the guardian were to be disabled or is no longer there to pay the premiums.


This option is thus very useful in the case of the guardian becoming permanently and totally disabled as a result of injury or sickness and thereby totally incapable of engaging in any gainful activity or carry out any work, occupation, or profession to earn or obtain any wages, compensation, remuneration or profit. The Personal Accident Benefit with regard to child insurance is a low cost additional benefit that is paid in case the insured’s death or total and permanent disability is caused by an accident. Total and Permanent Disability means accidental injuries which, within 180 days from the happening of such accident and independently of all other causes.

Another important benefit of the chilled endowment participating plan is the cover upon diagnosis of any of the ten diseases such as heart attack, cancer, stroke, CABG, multiple sclerosis, kidney failure, organ transplant, paralysis, COMA, and heart valve replacement or repair.