help create a corpus for crucial stages in the child’s life
Whoever with children dependent upon them like parents, grandparents or legally assigned guardians can buy child plans?Types of Child Plans
This type of plan is risk-free and ensures guaranteed returns. The Insured gets the fixed Maturity amount at the time of maturity. Traditional Plan can be further subdivided into two types, viz. child endowment (the insured, at maturity, receives a fixed maturity amount in a lump sum) and child money back (insured receives, at predetermined regular intervals, the fixed portions of the sum assured; balance is delivered on maturity)
This plan is risky as returns are market based. What the insured gets at maturity depends on the type of funds and market conditions. Uptrend the market, the higher the returns and vice versa.
The right time for financial planning for your child depends on the type of Policy you choose and the duration. The sooner you invest, the better it and the more secured is your child's future. Wise parents plan for their children's investment right from their birth. Younger the child's age, lesser the Premium you pay. Financial planning for your child should start at an age when the maturity amount coincides with the crucial events of your child's life. And implementing it on time can make all the difference!
The policy should come with a premium waiver benefit so that if the parent does not survive the policy term, all future premiums are waived off, the policy remains in force, and the child gets all the maturity benefits
it is the amount deducted by the Insurer from the premium for fund investment. Read the fine print before you invest
Careful selection of Riders is a must. It is helpful when a parent does not survive the policy term. Payer benefit, waiver of premium, dreaded diseases benefit, and personal Accident benefit are few prominent riders
It is the sum Assured guaranteed in addition to the maturity amount by the insurer. It is provided for the number of years the premium has been paid, payable at maturity
It is a percentage of the sum assured, in addition to the guaranteed benefit, declared from time to time and added. The amount varies according to the insurer’s performance and the number of years that the premium has been paid for.
Visit a reliable insurance aggregator’s website, get quotes, and buy the right policy.