Child Insurance Plan

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Exclusions in Child Plans

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Child plans are one of the popular insurance plans that parents buy to secure their child's future or finance their education. Many child Health Insurance plans also have useful benefits to cater to the child in case of any eventuality. However, before you pick a child policy, notice the Exclusions in the plans and find out whether they are really of a great help for your child’s future.

Here are some facts about child plans where benefits can elude the beneficiary. These include exclusions in the child health plans as well as life insurance plans that are catered especially for kids

Exclusions in Life Insurance Plans

There are many life insurance meant just for kids. Some endowment child plans allow survival benefits in installments to fund child's education. However, the amount can be excluded from the plan if the life Assured commits suicide within one year of the Policy term.

Some life insurance plans that provide accidental Death Benefit and benefit for permanent disability, exclude compensation to Life Assured if there have been the accidents on any of the following situations

  • Criminal or illegal act
  • Act under the influence of illegal drugs or alcohol
  • Act while racing or betting, illegal flying
  • Disability or accidents due to taking part in strikes and riots, military service, or police force

In case of Critical Illness rider, the benefit may not be given to the Beneficiary if the life assured suffers from cancer, malignant tumor, non-invasive cancer, or immunodeficiency virus. The life assured in the child plan can be excluded from benefits if he or she suffers from a heart ailment, stroke, symptoms of migraine, and major heart surgeries.

In general, the child policy would ideally keep the child as a nominee while one of the parents would be the life assured. In case, the child plan has the child as the life assured with any of the parents as the nominee, the child must attain certain age and should be below the age of an adult to get the required benefits.

Omissions in Child Health Insurance

Child health insurance policies are yet another sector where policy buyers make a beeline to get the product. The non-floater child health plans can be bought when the child is at least 90 days old. For individual child health plans, the child must be 5 years old. In few other health plans for children, the child must be 7 years old for the beneficiary to get the required benefit. If the nominee is below 7 years of age, he or she is excluded from the plan benefit. An appointee must be fixed to allow the child to get the benefit.

Once you have a child health care plan, you can pursue costly treatments which would otherwise hurt your pocket. However, here too, there are omissions which can prohibit a child from getting due compensation. For instance, older children with Pre-existing diseases are excluded from the compensation for that particular disease.
Most of the child health plans don’t include treatment that is caused due to insanity or are self-inflicting, or immoral. There can be exclusions on high Risk activities, such as mountaineering, daring acts, dangerous hobbies, or hunting. In some child health insurance policies, there can be exclusions in cases of:

  • Deliberate failure to seek medical advice at the right moment
  • An undisclosed pre-existing disease
  • Misinformation about facts and figures in the policy
  • Diseases arising from sexual misconduct
  • Radioactive-related diseases

Point to Note

When the child becomes an adult, the child plan would be automatically owned by the child. In a family floater however, children who attain adulthood or a certain age are excluded from the plan. You need to compare child plans available on the net with an insurance aggregator to know the exclusions for each plan and select the best one from the lot. Whether child endowment plan, money back policies, or ULIPs, all child plans on life insurance or child health insurance, have exclusions to ensure that the right person gets the amount from the insurance company. And, the benefits of the child plan would be used as a financial security for the child in concern.