Is Child Insurance Plan Really Worth it?

is child insurance plan really worth it

Every parent makes sure that they serve their children the best of education, food, living, clothing etc. Parents can fulfill all these needs for their children just by purchasing online child insurance plans.

Today, buying the best child insurance plan is considered as the basic requirement so that parents live a prosperous life with their family members. Due to a wide range of child insurance benefits, these insurance products will help policyholders to save their children’s future goals.

Generally, these plans are available with a unique premium feature which guarantees even after insured’s demise, it waives off all future premiums. In fact, insurance companies in India also pay money which is equal to the premium every year.

Policyholder’s child immediately gets complete sum which is assured. On maturity, insured person receives 100 percent fund value. In Indian insurance market, various plans are available which offer the beneficiary with the actual amount insured for a child once he or she reaches a maturity age of 18 or 21 years based on the plan which has been selected.

Also, the insurer puts the premium money into the same policy on behalf of the insured person. Under child insurance, parents are the investors and child is the final beneficiary when he or she grows up. If the parent dies, lump sum money is given to the family and acts as a financial corpus which remains intact till its maturity date.

The returns on insurance plans for children are eligible for tax benefits and can save a handsome amount of money. Just decide the maturity age, sum assured, premium waiver benefit, and policy period and premium payment mode.

Policyholders can pay premium regularly at quarterly, half-yearly or yearly basis. Child insurance comes in both unit linked investment and traditional plans.

Traditional child insurance plan is invested in debt instruments and gives guaranteed maturity returns to a child when he requires the much needed financial support. Under ULIP plan, money is invested in debt and share markets. But, this plan contains more risk as compared to traditional plans.

Child insurance education plan takes care of your child’s educational expenses, including school/college fees, tuition fees etc.

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