Tag Archive | "Child Insurance"

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.

Tags: ,  

Understanding The Basics of Child Insurance

  • Easypolicy
  • 13 Sep 2014

Child insurance has grown and evolved as a concept and is a sophisticated investment instrument these days. With the buzzword doing the rounds all over, what do you need to know in terms of understanding its basics and making full utilization of what it has to offer?

•Child plan is not just another piece of investment. This is a specially floated tool that is meant to give your child the freedom and the financial power that he or she may require at different distinct stages of life. Whether you are looking at higher education, studies abroad, or having them settled in life, there are opportunities available for the different stages and through well-defined policies.

•Flexibility is the name of the game. Whether you call it a necessity on account of competition or willingness to cooperate to different customer needs on the part of the service providers, the fact is that customers have much to gain out of this enticing financial package. Child insurance is not a fixed proposition but is flexible to suit your interests and needs.

•Add Riders to make them even more customized. That is the way you add value to the investments that you have made. You could opt for Waiver of Premium rider, for instance, or a host of other riders available, to make them tailor-made to your requirements. 

As is always the case, the earlier you set off on your road to investment, the better would it be in terms of managing risks and maximizing returns.

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.