Categorized | Child Insurance

investing in child plans

As soon as the child is born, parents usually opt for the various investment options such as fixed deposits, national savings certificate, shares, mutual funds, etc. In order to give them the best education, proper health care as well as to meet their grand wedding expenses.
Parents love their children and will be ready to do anything for their best. Growing medical cost force parents to seek for the best alternative to pay the medical bills and safeguard their children during unexpected emergencies.

Besides the above mentioned saving instruments, parents still consider child insurance plan to be the best investment option for the child’s bright future.

Why child plan?

Child insurance Policy and child health plan offered by various companies in India provides a more secured future for the children both in terms of education and health. Child insurance policies are the regular life insurance plans and its ultimate aim is to meet the demands of your children when the need arises. Child policy is considered important as it allows parents to fulfill their child’s dream and aspiration even in their absence. Depending upon your need, you can choose a plan that gives more financial security to your children in order to support their education and marriage. The child health plan is also equally important as it comes handy to bear the hospital expenses during unforeseen circumstances.

Different types of child insurance plans

Child ULIP (United Link Insurance Plan):  In ULIP, parent is the life Insured and the insured will be given  investment options to choose from. Here the Risk is taken by the insured as he decides where the Premium should be invested.

Child Endowment Plan: This is a traditional money back plan. Similar to Child ULIP, here again the parent is the life insured. Built in Waiver of premium rider is the special feature in this plan. In case the insured dies, the sum Assured is paid by the insurance company to the beneficiary. Subsequent premiums are borne by the Insurer while the future premiums are waived. Once the policy matures, the child besides receiving the Sum Assured also gets accumulated annual and final additional bonuses.

Child Money back plan: Unlike the above two policies, here the life insured is the child. The policy can be started once the child is born but it would commence after two years or once the child attains 7 years of age. You have the option of paying the premium yearly or half yearly or quarterly or monthly. Parents have to pay the premium amount till the child turns 18 years of age.  This policy also offers guaranteed annual return in addition with loyalty bonuses based on their performances in the market.

Benefits of Child insurance plans

•Opting for a child plan helps you to plan appropriately for your child's future as it supports the child’s education and marriage.

•The insurer waives the future premium in case of death of the insured and hand over the sum assured to the beneficiary. 

•The insured gets guaranteed fixed benefits 

•Also, the insured as option of partial withdrawal.

The Policyholder will receive the fund value at the time of maturity. Every parent is concerned about the well being of their kids.Child insurance plans are the ones which eliminates the worries of parents about their child's future.