First of all, I am sooo jealous of the wonderful time you will have.

With respect to Chile, may I suggest Vina del Mar - its in Valparaiso province, but has some of the best architecture, beaches and people in Chile. I am unsure however how much the earthquake affected the city; but as far as I have heard from friends in the area, only some minor damage was incurred, mostly to some of the older buildings.

In India, I would also suggest Pondicherry - its a wonderful southern coastal city. I would argue its less filled with tourists than Goa and would allow you to immerse your family in a different part of Indian culture than the major cities would.