Due to lack of knowledge and insufficient fund, the increasing cost of education is worrying parents. The only way to get over this worry is to buy the best child insurance India online.
It gives a high coverage at an affordable rate and offers lump sum money to the beneficiary in case the insured person dies. The child receives the amount at certain intervals as mentioned in a policy. But, the plan expires at that time.
This is the only way through which parents make sure that his child’s requirements are taken care of even in his absence. Almost all term insurance companies in India have child plans in their product range. Some of these policies are market-linked plans which allow insured people to invest in debt and equities. Generally, these plans are also differ based on child insurance age category.
Remaining plans are traditional policies that invest only in debt. The life insurance premium paid for child plans is eligible for tax benefit under Section 80C and income from the policy is tax-free under Section 10(10D).
Parents prefer to purchase term policies with specific child insurance age limit instead of paying a huge sum as premium to a child insurance India for themselves and invest more amounts in mutual funds. At the time of maturity, people will have a bigger corpus.
What in case the parent dies few years after buying a policy? The term insurance plan will offer lump sum money for the instant requirements of the family and stop further investments in the mutual fund.
However, the child insurance will pay the lump sum and continue investing on behalf of the insured person. Insurance companies in India believe that the waiver of premium feature is the main feature in a child insurance policy because it doesn’t let the demise of the insured person derail the investment plan for a child.
Child insurance India will make parents continue investing every year, thus making sure that they saves sufficient fund for their children. Child plans designed by insurance companies in India are made to fulfill the requirements of a kid.