Parenthood brings unprecedented joy in the lives of people and inspires them to provide the best to their children. However, it is also accompanied by a plethora of responsibilities; the most important one being the physical and mental well-being of children. The rising cost of healthcare is worrisome for many parents, which has made health insurance for children a prudent investment avenue.

Read below to know all about child health insurance plans and why you should invest in one.

  • Rising Cost of Healthcare:
  • With rapid advancements in healthcare, there is increased usage of sophisticated machinery and equipment for the diagnosis and treatment of diseases, as well as innovations and development of new medicines. These factors have led to a massive increase in the cost of healthcare. Thus, investing in health insurance for your child will greatly reduce your out-of-pocket expenditures in case the need ever arises.

  • Scope of Coverage:
  • Individual Child health plans come with a host of benefits ranging from cashless hospitalisations, health risk assessment, consultation with expert physicians, counselling on various health concerns, and critical illnesses.
    These plans charge a lower premium since the risk involved with children is minimal, and hence parents can save greatly on the premium amounts. Some plans also offer a no claim bonus which permits the reduction of premium amount or increase in sum assured if no claims have been made during a particular period.

  • Family Floater Policy:
  • While you can opt for an individual child health plan for your child, a family floater policy may be a smarter choice. This is because it covers parents and up to four children less than one policy. Thus, a child health plan can protect not only your child but yourself and your spouse too.

  • Tax Benefits:
  • Among many benefits, investing in a healthcare plan for your child can also help you reduce your tax outgo. The premium paid on the medical insurance in the name of your dependent children is tax deductible up to Rs 25,000 as per section 80D of the Income Tax Act, 1961.
Investing in a health insurance policy for your children timely is the best way to safeguard their health as well as ensure your savings are intact. It is important to wisely weigh your options and carefully go through the fine print of various policies in the market before purchasing the right child insurance plan for your kids, and securing their future.

Learn more about different Health Insurance Plans here.


The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

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