by Animesh p
Published Sun, Mar 19th 2017, 18:39 | Advertising
As a parent, you want your child to have all that they desire in life. When you step into a new and the most heartwarming phase of your life which is parenthood you are not only gifted with a child as a bundle of joy but along with it, comes an added responsibility of fulfilling all of your child’s needs without compromising and also to safeguard him/her against all the odds. But life is uncertain, as a parent, it is your responsibility to ensure that your child doesn’t face any financial difficulties or barriers in life ahead. This is where a child plan can help you.
A child plan is an insurance plus investment plan which ensures financial security along with backup for your child’s future needs like higher education, marriage, unforeseen circumstances or medical issues that may arise in future. It protects your child’s future in case of your unfortunate death and at the same time helps you build a financial cushion over a time period for any of the important events in their life.
Child insurance plans are specially designed keeping in mind the welfare of the child even if the parent is not around. It is a long-term investment plan where some part is kept aside for life cover and the other is invested in markets. So with this plan, you can be rest assured about your child’s future even in your absence.
However, before selecting a child plan, it is important for you to know the basic features of a child plan which are listed below:
Premium: You can pay the premium amount in lump sum amount at the beginning of the policy term or you can go for partial payments to be made periodically. It can be made monthly, quarterly or half yearly.
Sum Assured: It refers to the amount which will be paid in case of your unfortunate demise and the remaining premium is waived off keeping your children away from any additional burden.
Maturity Amount: You should be careful while deciding on the maturity amount of the policy. It is advisable to choose this amount keeping in mind various factors like inflation, market rates, etc. As the policy matures after long time duration, the amount should not fall short for the requirements of your child in future.
Plan Tenure: Child plan is generally taken for children up to the age of 18 or 21. However, there are specific plans available for a higher age.
Partial Withdrawals:
Child Education Plans allow you to make partial withdrawals when needed so this helps the parents to pay dues like school or college fees, books or tuition fees or any other requirement of the child.
Premium waivers: Child plan also provides an additional benefit of premium waiver if the parent dies within the stipulated term of the plan. In such circumstances, the sum assured will be given to the child, and the remaining premium will be waived off.
Riders and benefits: Riders are the additional benefits that a child plan provides. These are available by way of premium waivers, major illness or accidental demise or disability. They are add-ons to the life coverage offered by the child plan and add more value.
Thus, while selecting a child plan, consider the above features and choose the right plan which will not only safeguard your child but also satisfy his/her requirements even when you are not around.