Frequently Asked Questions

A child insurance plan ensures that your child’s major life goals, education, higher studies, marriage, or career aspirations are financially protected, even if something unexpected happens to you.

A lot. If you don't account for inflation (8-12% per year), your savings may fall short by lakhs of rupees when it's time for college admissions.

Gradually reduce your exposure to volatile instruments as you approach your target. Early investments lead to maximum compounding benefits

Yes. You can choose ULIP child insurance plans that have fund switch and other fund management strategies with inbuilt life cover. There are child insurance plans that help you pause contributions temporarily

If your policy does not include this feature, it will discontinue. If the feature is included, you will be able to pay future and remaining premiums as usual.

In most cases, child savings plans are tax-free on maturity. If your policy complies with Section 10 (10D), typically where the sum assured is at least 10 times the annual premium, the maturity amount is fully tax-free. Still, it's wise to check the latest tax rules each year, especially during budget season, as regulations can change.

Child savings plan must be annually reviewed. However, a major life event-job change, significant market downturn, or regulatory amendment- may warrant an interim check-up.

Yes, you can change your child’s investment plan if it is not to your liking. If underperformance is due to high fees, strategy drift, or persistent manager issues, reallocating to more suitable options can restore alignment with your objectives. Ensure changes are based on a clear evaluation rather than short-term market noise.

Yes, but with care. Market volatility can create significant gaps in your asset allocation, making rebalancing important to restore the intended risk level of your child’s investment plan. However, it’s essential to consider transaction costs and potential tax implications before making changes. Using a threshold-based rebalancing approach can help manage risk effectively while avoiding unnecessary or frequent trades during volatile periods.

You can compare child insurance plans using online insurance aggregator platforms. Look at the premium, sum assured, policy term, bonuses, waiver options, and payout structures. Also, read customer reviews and check the insurer's claim settlement ratio for a better understanding.

Yes, you can still buy a child insurance plan even if your child is 10 years old. However, the policy term will be shorter, and premiums might be higher compared to starting at a younger age. You'll need to plan carefully to ensure the maturity benefit is enough to meet your child's goals.

If you miss your premium payments, most insurers offer a grace period (typically 15–30 days) to pay missed premiums. If you still don't pay the premium, the policy may lapse. Some policies allow revival within a specific period, but penalties or health checks may apply. It's best to set auto-debit options to avoid missing due dates.

A retirement plan helps you build a financial corpus for your post-retirement years while providing life cover. It not only ensures a steady income but also offers coverage to your family in your absence.

To avoid paying taxes on your retirement savings, investing in retirement schemes approved by the government is one of the best ways to reduce taxes. Plans such as PPF, EPF and eligible life insurance policies are often provided with higher tax rebates.

Yes, investing in retirement plans in India lowers your taxable income by allowing you to claim an annual tax deduction when you file your ITR (Income Tax Returns). The Government of India allows deductions under section 80C and other application sections for investments solely made for retirement planning.

When you withdraw retirement funds early, before completing the required lock-in period, the tax benefits may be revised. For example, if you withdraw from EPF before 5 years of continuous service, then the amount becomes taxable.

For salaried individuals, one of the best combinations for retirement planning is EPF + PPF + NPS. Together, these offer guaranteed returns, tax benefits, and market-linked growth. For added security post-retirement, consider an immediate annuity plan or SCSS.

Not really. EPF is a great foundation, but with inflation and healthcare costs soaring, relying solely on EPF may not be enough. Supplement it with NPS, PPF, or mutual fund SIPs.

The minimum age to start a retirement plan is 18 years old. In fact, the earlier, the better. Starting early means you contribute less and still build a large corpus, thanks to the magic of compounding.

Retirement plans offer significant tax benefits. Contributions to EPF, PPF, life insurance premiums, and other eligible instruments collectively qualify for deduction up to ₹1.5 lakhs per financial year under Section 80C of the Income Tax Act, 1961.
As per Section 80CCE limits the maximum deduction under sections 80C, 80CCC, and section 80CCD(1) to Rs 1.5 lakhs per financial year
An additional ₹50,000 deduction is available under Section 80CCD(1B) for NPS. SCSS and PMVVY are taxable but attract a low TDS rate, easing the tax burden.

The tax treatment of retirement plan returns depends on the type of plan and prevailing tax laws.
1. EPF and PPF: Interest and maturity proceeds are tax-free, subject to prescribed conditions.
2. NPS: On maturity, up to 60% of the corpus can be withdrawn as a lump sum [tax-exempt under Section 10(10A) (iii)], while the remaining 40% must be used to purchase an annuity. Annuity income is taxable.
3. SCSS, PMVVY and Annuity Plans: Interest or annuity income is taxable as per the applicable income-tax slab.

Some life insurance retirement plans allow partial withdrawals or policy loans after a certain lock-in period, giving you access to funds for emergencies.

In case of the policyholder’s unfortunate demise during the policy term, the nominee receives the life cover amount or accumulated corpus, ensuring financial support for the family.

Calculating your HLV helps determine the right life insurance coverage for your family. It ensures your loved ones can meet expenses, repay debts, and achieve future goals if you’re not around. This allows you to plan wisely and secure their financial future.

Human life value can be estimated in different ways. One approach focuses on replacing the family’s future income, ensuring their financial needs are met. Another approach considers the actual expenses and goals your family would have if you were not around. For convenience, an online human life value calculator can provide a quick and accurate estimate tailored to your situation.

You should recalculate your human life value whenever you see a significant shift in your lifestyle. It can be a salary increase, new financial responsibilities, investments, or life-altering events. Reviewing your financial condition and human life value once a year can keep you aligned with your family’s evolving needs.

A retirement calculator helps you estimate how much to save, set realistic goals, and choose the right investments. It provides a clear picture of your future finances, making it easier to plan for a secure and stress-free retirement.

A retirement calculator estimates your future corpus by considering key factors such as your current age, retirement age, monthly expenses, expected inflation, and projected investment returns. It adjusts your current and future expenses for inflation and then determines how much you should save or invest regularly to reach that goal.

Yes, a retirement calculator can factor in your existing savings to give a more accurate estimate of how much more you need to save. It helps you adjust contributions and plan effectively to reach your retirement goals faster.

Retirement calculators provide estimates based on the information you enter, such as age, income, expenses, inflation, and expected returns. While they give a useful guide for planning and goal setting, actual results may vary because of a market-linked plan, changes in expenses, or unexpected events.

A retirement calculation formula estimates how much money you may need after retirement to cover your expenses throughout your retirement years. It considers factors like current expenses, inflation, retirement age, life expectancy, and expected investment returns. The most used formula is:
Retirement corpus = Annual expenses at retirement × Number of years in retirement

Life insurance claim documents usually include the claim form, policy document, death certificate, identity proof, and medical records if required. Exact requirements may vary by insurer and claim type.

Smoking or tobacco use does increase term insurance premiums. Insurers consider smokers and tobacco users to be at a higher health risk, which leads to higher premium rates compared to non-smokers. Declaring tobacco use honestly is important, as non-disclosure can result in claim rejection later.

Term insurance premiums for self-employed individuals may be slightly higher in some cases. This is because income for self-employed professionals can be irregular or harder to assess, which insurers factor into their risk evaluation. However, premiums mainly depend on age, health, and coverage amount, not employment type alone.

Buying term insurance online is often cheaper than buying it offline. Online term insurance plans usually have lower costs because they eliminate intermediary commissions and reduce administrative expenses, while offering the same coverage and benefits as offline policies.

An appointee in term insurance is responsible for receiving and managing the claim amount on behalf of a minor nominee. The appointee holds the funds only until the nominee becomes legally eligible to receive them.

Riders usually need to be chosen at the time of policy purchase. Most insurers do not allow riders to be added later, though some may permit additions during specific life events or policy anniversaries. It is best to choose riders carefully while buying the policy.

The term insurance premium payment term generally cannot be changed once the policy is issued. The payment frequency and duration are fixed at the start. However, some insurers may allow limited changes under specific policy conditions.

Term insurance policy status can be checked online through the insurer’s website or mobile app. By logging in with your policy number, you can view premium details, policy validity, and coverage information. You can also contact customer support for assistance.