WHY TO INVEST IN CHILD INSURANCE?
The expenses involved during the up-bringing of a child are high and some are literally unaffordable. A proper child Policy
will offer you the necessary financial assistance at the right point of time despite giving several benefits during the policy period. Planning and identifying the best child plan that suits your child’s educational interests will secure your child's future. Most of the child policies cover basic requirements like health and studies apart from financial benefits. Once invested, the policy will take care of all the requirements even in case of untimely death of the parent.CHARACTERISTICS TO LOOK FOR IN A CHILD PLAN
The sum Insured
must be paid immediately. Double and Triple benefit options offer partial reimbursements at time of death and maturity.
Funds must be reimbursed immediately upon Maturity
or over a period of time.
The child for whom the policy is taken is the actual Beneficiary
but different insurers give an option of nominating other kids as the beneficiary when needed.
If no claims are made during the policy tenure additional benefits and provisions are added to the fund value during pay out.
Few insurance companies provide options of increasing and decreasing premiums for a limited number of times. These flexibilities could be availed by the policy holder.HOW CHILD PLANS ARE DESIGNED
- Financial goals are set according to the different stages of a child's life:
- Factors such as area of educational interest and extracurricular interest are considered while framing a child plan.
- Maturity period for different entry age limits are calculated for availing the returns at the right time when they need it the most.
- Factors such as inflation, tax deductions and cost of education are considered before framing a child insurance policy.
- In case of untimely death of parent, all future premiums are waived. The policy remains active and maturity benefits are provided as per the policy plans.
- While designing child plans, allocation charges are calculated and deducted from premiums and are invested in various funds according to the plans.
- Special care is taken to prevent Lapse of the policy by providing riders. The policy may or may not provide Riders and is just an option in all the child plans. The decision of availing this benefit is solely the discretion of the buyer.
- Child plans are designed to provide guaranteed benefits along with the maturity amount to satisfy the customers.
THINGS TO REMEMBER
- Few insurance companies also provide loyalty benefits as an added trophy for being regular in paying the premiums.
- Choose a plan that complies with your plans.
- Identify the best plan that suits your child's interests and your budget.
- Age limit and maturity periods have to be considered carefully before investing. Returns must be available at the right time else you will lose upon the maturity benefits if claimed before maturity.