Child Plans

Q- Why should I buy child life insurance policies?

Ans- Buying child insurance plan helps discipline your savings for your child. Maturity of child plans coincides with the specific times when you might need extra finances to meet the child requirements, thus easing out the financial problems at given times. They also provide cover to the parent or the guardian for the agreed duration so that if anything happens to the parents, the child is still financially secure with all the benefits still available.

Q- Who can buy children’s plans?

Ans- Whoever has children dependent upon them can buy child plans. They can be parents, grandparents or legally assigned guardians of the child.

Q- What happens if the proposer passes away?

Ans- Most child plans come with the payer benefit or the waiver of premium benefit. So, if the proposer dies, the insurance company takes care of all the future premiums of the child’s policy. The child is also entitled to a sum assured along with it. Each insurance company has this benefit in exact or similar form depending on the company policy. Generally payer benefit is inbuilt in the child plan but if not, it can be taken as a rider with nominal premium.

Q- What is a traditional child insurance policy?

Ans- The traditional child insurance policy has guaranteed returns. It has a fixed maturity amount that is given to the insured at a specific age. It can be of two types: i. Child endowment policy: In this case the child receives a fixed maturity amount in lump sum at the maturity of the plan. ii. Child money back policy: Here, the child receives fixed portions of the sum assured at pre determined regular intervals. Finally on the policy maturity date, the child receives balance maturity amount.