The information you desired to know about child insurance

It is said by Walt Streightiff  “There are no seven wonders of the world in the eyes of a child.  There are seven million.”
Being a parent, some important planning related to your children can be

  • Education
  • Daughter’s marriage
  • Succession
  • Planning for a business for best support of your family.

There are a number of investment options are available that can help you in the future by offering capital for fulfilling your needs. These investment options can be with fixed income such as bonds and FD’s whereas some other may offer fluctuating returns such as mutual funds, equity etc. Both are associated with the condition of the economy.

Apart from these investments, another option is child insurance that comes with a stable income and has become a necessity of these days. Child insurance along with protection offers you a list of the various benefits. Being a sensible parent, it is your inevitable responsibility to purchase an insurance policy for your child. These insurance policies are one amongst those that offer a secure financial future for your child.

In India insurance firms are offering lots of plans for your child, you have to choose the right plan for best results.

Importance of child insurance policy
Child insurance is crucial because children are totally dependent on parents, in case of any accident to parent’s in the initial stage of child’s life leads to significant hazards to a child’s survival. Child insurance polices not only enables parents to meet daily needs of their children but at the same time reveal them from their future tensions.

How does it work?
Child insurance plans are basically life insurance covers, parents are policyholders and children are beneficial in such policies. The child will be paid in case of parent’s death, if after the death of parents someone continues payments of premium the assured amount will also be paid to the child after the completion of the scheme.

Risk-return expectations
A number of insurance companies are out there in the market with various plans offerings from conventional baskets to innovative modes such as unit links insurance plans or ULIPs. The selection of insurance policy among the bunch of different bundles is totally relaying upon risk-return expectations of parents. When parents try to avoid risk through the exposure of equities best insurance instruments for them are capital guaranteed schemes or ULIPs can be good options in case of equity exposures.

Assured amount
ULIPs have an advantage over conventional insurance policies as for the same policy its live coverage is high. Longer term results in high returns as well as parents can increase assured amount by creating top-up-premium. The policy allows you to pay in single premium or regular premium. Premium payments can be on the premise daily payments, monthly, quarterly or annually.

Things to remember before purchasing a plan
There are some fraudulent bodies existing in the market therefore it is crucial to gather necessary information concerning charges, unaccredited agents and ask about the authenticity of the insurance policy before making purchases. Such information will save you from serious losses as well as help you in making long term relationships with insurance firms.

Best Reading:

Think of a customized investment plan for your kid’s future with a mix of 2 or 3 investment options instead of  ready made product with a tag “Child Plan”.


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