help create a corpus for crucial stages in the child’s life
Child plans are at the heart of every parent's dreams about his or her child's future. When you buy a child plan, it is much more than just another investment decision that you make - with so many different types of child plans to choose from, your decisions have repercussions with regard to the kind of future that your child could afford and enjoy.
Whether it is regular child insurance or an online child plan, the variants come in the form of Riders as well as in the form of the various instruments that you could use to get started with child insurance. And it is the variety and range available with the types of child plans that makes it even more compelling to buy child plan at the right time.
One of the most popular forms of child Policy involves the ones that are designed and delivered by insurance companies. These child plans are seen to be on the expensive side since they are similar to endowment plans – they include an investment and an insurance component. However, the positive side is that you have all the liberty to plan it out. An online child plan, for instance, is an option that you could go for under this category, which lets you plan future payouts well in advance and plan the Maturity dates in line with future milestones in the lives of your kids.
Popularly called as Unit Linked Insurance Plans (ULIPs), they constitute the right instruments to deliver high returns in combination with a reliable investment proposition. Some of the advantages when you buy ULIPs are:
Of course, you would have to weigh these positives against the risks of fluctuations in value of your investment with changing market conditions, whether it is a regular or online child plan.
Traditional money back plans could be used as instruments of investment in child insurance. The positive aspect about the traditional money back plans is that you would be able to plan your future expenses based on the regular payouts. Further, you could hope for a lump sum maturity amount at the end of money back plans, making them one of the useful types of child plans. However, the returns from money back plans are usually less, and there is limited flexibility in terms of withdrawing your investment.
Endowment plans combine insurance and investment, where you could get insurance cover for a specified period and you would also gain from the guaranteed maturity amount at the end of the insurance period. With a combination of investment and insurance, you could plan your child insurance with an expected rate of return.
The main idea behind a child plan is to make them just the right kind of tools to power your child's future. Naturally, there are riders attached to child plans, which add value to the already useful child policy. Along with the various types of child plans, riders such as the Waiver of Premium rider allow for waiving off of any remaining premium upon instances such as death of the life Insured or in the event of any disability or dismemberment. These riders are of particular significance to child insurance, since under normal circumstances, any disturbance in the life of the parent could result in the child’s future plans going awry. When you buy child plan with riders, you could have so much more peace of mind.