Categorized | Child Insurance

Long Term Advantages of Child Plan

A bright future of their child is every parent’s dream and they strive to do all what it takes to assure the same. Insurance companies have designed child plans taking into account this uncompromising behaviour of parents when it comes to securing their child’s future. A child plan is quite different from a plain vanilla insurance policy. The feature and benefits of a child plan assure that the future of your child is protected in all circumstances.

A child plan comes in various tenures and formats to suit the varying needs of parents. It offers various advantages in the long Term for parents and their ward.

1. No worries about paying the insurance Premium in case of an early unfortunate demise of the insured

Unlike plain vanilla insurance policies a child plan does not terminate when the Insured person dies. The plan continues till the policy maturity date. The liability towards the payment of annual insurance premium rests on the insurance company. Apart from taking care of the future insurance premium payment, the insurance company also pays a Death Benefit so that the family of the insured can take care of their ongoing living expenses.
2. Pre-determined Pay-outs to ensure the child’s funding needs are met

The value of money is best realized only when it is made available at times when it is required the most. A child plan ensures the same. There are specific milestone in a child’s life when they need funding. If the funds are available a child does not have to compromise on the important choices he needs to make for securing a bright future for himself. Usually, when a child needs to opt for college education and higher education he needs funding support. With a child plan, parents can ensure that the predetermined payouts from the child plan are planned around the same time.
3. Flexibility to choose your preferred investment mix

The Risk appetite of parents can vary from each other and hence a child plan allows parents to choose an investment mix of their choice. They can choose to invest 100 percent of the funds in either debt or equity or a mix of the two. There are various fund options available and parents can choose the one that best meets their risk return preferences. Insurance companies realize that the risk appetite of parents may vary with time and hence they also offer a switching option which allows parents to change their investment mix as and when required.
A child plan not only secures your child’s future but also helps you grow your money with time by leveraging the services of domain experts.