Children are biggest treasure in every parents life. Parents dream about their children’s bright future. To make these dreams to come true planning and investing in right time is important. Its essential to plan for their education, higher education, carrier or marriage. Their futures should be bright in our presence and absence.
Child education plans offers both protection and savings. Child plans are designed to provide goal based financial security to your child for their education, marriage, carrier or create a corpus for their future requirements. Their future is protected while you are there or in case of any unexpected happing or unfortunate demise. Their life will be as you imagined with you or without you. This a goal based insurance so set your goal and save amount accordingly.
Features of Child plan
Mostly these are taken on parent’s name, which would benefit the nominee child in case of untimely demise of the earning parent.
Age at which you are expecting sum assured amount minus current age should be your policy term.
In current market rate amount you want for a goal you set, add inflation of 6-8% to it that will be your sum assured.
Insurance can be taken on the lives of children, who are not majors. The proposal will have to be made by a parent or a guardian
Benefits of child plans
These plans help you fulfill your financial commitment towards your children
Help you meet the rising cost of your child’s higher education or other milestones in their lives.
These plans provide you with funds at pre-fixed intervals to help you meet the important milestones’
requirements of your child
Secures both parents’ as well child’s life
Also provides with a life cover
Premiums are relatively low
Cover is obtained irrespective of the state of child’s health on the deferred date.
Guaranteed returns or ULIP options are available in child plans. Choose according to your risk appetite.
Things one should be clear with while opting for child insurance plan
With regard to the deferred date* various options are available. In some plans, children between the age of 5 and 12 are insured, with risk commencing at age 12. While in some other plans, policy can be taken when the child is between 1 and 12 years old and risk will commences not earlier than age 7.
Children policies have conditions whereby the title will automatically pass on to the insured child, on his attaining the age of majority. This process is called vesting.
*Deferred Date – The time gap between the date of commencement of the policy and the commencement of risk is called the ‘deferment period’. If the child is 6 years old when the policy is bought and the cover begins when the child attains 15 years of age, the deferment period is 9 years. The date on which the risk will commence, at the end of the deferment period, is called the deferred date.