Tag Archive | "Child Insurance"

Customize Your Child Plan!

  • Easypolicy
  • 25 Nov 2014

A host of child plans are available today. Buying a child plan guided by advertisements or peer pressure or simply because it is cheap may not be wise. Before you sign the dotted line you ought to assess whether the plan actually addresses your needs. If the child plan you intend to buy is not customized to your needs it is most likely to either under-serve or over-serve you and therefore may not be the right choice.

It is important to realize that as every individual is unique, it is impossible to get a Standard Plan that addresses everybody’s need equally well. Customizations are required for variety of reasons.

Risk appetite changes with time

Every individual has a different Risk appetite, or different expectations with regard to the return. It is important that you choose a child plan that allows you to adjust your exposure in debt or equity based on your risk appetite. This means, if you have a higher risk appetite you can opt for greater exposure in equity as against debt. 

There are child plans that even provide you with a self management option. Using this option you can choose from a suite of different investment funds that invests anything ranging from 100% debt to 100% equity. What’s more, such plans give you the facility to alter the allocation of funds between debt and equity as per you risk appetite at a point in time.
 
Security needs are different

Each one of us has a different standard of living and diverse expectations with regard to quality of life and education. It is important that you buy a plan that offers you the flexibility to choose a sum Assured that you feel is adequate for the needs of your child and family. 

There are child plans that allow you to buy an enhanced Sum Assured in addition to the basic sum assured promised for the chosen premium. You just have to shell out a nominal amount for buying this enhanced security that you desire for your child.

You can further enhance the protection for your child by choosing from a host of riders. The various Riders available with child plan include accidental death and disability rider, Critical Illness rider and hospital care rider. The annual insurance Premium obviously would be higher if you opt for these riders, but if you think the additional protection is worth the money, better go for it.


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Know your policy Child Insurance

  • Easypolicy
  • 01 Nov 2014

Children are the future of any country. Parents wish the best for their children but do they provide enough for them financially to deal with unexpected turn of events in life? Do they secure their children’s future? The answer is “NO” in a majority of cases. This is because many may not have sufficient knowledge of child insurance, or may assume that there are better ways of securing their children’s future, as in the case of investing in public provident fund, equities and so on.

There is no escaping the fact that it is every parent’s responsibility to ensure that they have provided for sufficient finances in order to secure their children’s future. With rising inflation, education costs and increasing material needs, insuring a child’s future is no longer just an option, but a necessity of life.

In the past, it was a common practice to buy an insurance Policy in the name of children. This simply served as a form of investment. But with increasing sophistication in policies, parents could buy a child plan where the insurance company pays the remaining Premium on behalf of the parent in case of their untimely death. This ensures that the child gets sufficient money even in the absence of their parent to pay for the remaining part of the insurance premium. In effect, not only is this plan a form of investment, but is an added advantage in that it covers risks of life like never before!

Child plans usually have a higher insurance premium payment than Term plans. Is this a disadvantage? Certainly not! In case of death of the parent, the insurance company not only pays the sum Assured but also continues to pay the premium on behalf of the policy holder till it matures. The payouts from insurance company can be pre-decided so that it matches with the child’s education needs. After all, is the very purpose of insurance not to protect against the unforeseen and the unknown?

In some child insurance policies that are Unit Linked (ULIPS), one can even withdraw up to 20% of the assured amount of money after the first five years of buying the policy. Another attractive option is taking advantage of a health benefit rider, which is applicable when the policy holder (parent) contracts any of the listed illness in the policy. Income benefit rider helps in provision of a fixed income at a fixed interval to the child in case of death of the parent.

Although term plans and mutual funds are also good investment choices, child insurance has an added advantage of premium waiver. Another practical reality is that most parents start investing for their child very late. In such cases, term plans, mutual funds and other options may be beneficial. If an investment has to be made at an earlier stage of the child’s life, a child insurance policy is more practical and safer, given the fact that it has an investment, safety, and income benefit linked to it.


how child plan makes it easy to meet financial demands in child’s future

  • Easypolicy
  • 23 May 2014

A good basic education lays a solid foundation for a child’s future. However, to ensure that all the hard work that the child and the parent have put in during their early education is best leveraged, there has to be no compromise when it comes to opting for the right college education. We all know how expensive college education is these days and parents need to accumulate years of savings if they wish that the quality of education for their children is not compromised for financial constraints.

Parents therefore need to be proactive and visionary when it comes to planning for a child’s future need like college education and marriage. No doubt parents would like to put their best foot forward while securing their child’s future and one of the most secure and efficient way of doing so in buying a child plan. A child insurance Policy offers you the promise of a bright future for your child. It offers all the benefits and cover that a parent would need for meeting the financial demands in child’s future no matter what the circumstance is.

How does a Child Insurance Plan help?

Discipline of investing regularly with a focus on child’s future needs

By choosing to buy a child plan parents can save in a disciplined manner enough money every year so that it grows with time and yields the required sum at the time it is most desired. You don’t have to worry about how the money is invested as it is entrusted in the hands of experts.
 
Assured pay outs at predetermined interval and at maturity

While you buy a child plan you in a way buy certainty that a minimum fixed amount will be available to fund your child’s education when he needs it. Upon the Maturity of the plan and at predetermined milestones which are generally aligned with the timing of child’s future needs a minimum predetermined amount is paid out by the insurance company.
 
Premium Waiver Rider

Even in the event of the early unfortunate demise of the parent, the policy does not lapse. Child plan comes with a Premium waiver rider which assures that the insurance company will take care of the premium payment in case the Insured parent dies.
 
Death Benefit in addition to sum assured

A child plan ensures that the upbringing of your child is not impacted in case of the early demise of the policyholder. The family of the life assured is provided a Death Benefit in case of the early demise while the policy still continues to remain in force and the sum Assured amount is also payable upon policy maturity. The death benefit receivable under a child plan helps the family manage their running expenses so that the child receives proper upbringing. Though the insurance premium of such plans is higher, such Riders are worth the money.