What is Child Insurance plan?
For every parent, it is very important to plan for their children's future in time. We try all possible measures to provide our lil ones with the best comforts of life. Be it best basic education, higher education, planning their carrier or marriage. We want their dreams to be nurtured fruitfully. We would want the same even if we're not around.
To cater to this need of ours children plans from various Insurance companies act the best.
How do these plans work: Child Education Cost Calculator
1. Insurance can be taken on the lives of children, who are not majors
2. The proposal will have to be made by a parent or a guardian
3. Risk on the child’s life will begin only when the child attains a specified age
4. Even parents can take a cover in their name, which would benefit the nominee child in case of untimely demise of the earning parent. Significance of children plans:
1. These plans help you fulfill your financial commitment towards your children
2. Help you meet the rising cost of your child’s education
3. These plans provide you with funds at pre-fixed intervals to help you meet the important milestones’ requirements of your child
4. Secures both parents’ as well child’s life
5. Also provides with a life cover
6. Premiums are relatively low
7. Cover is obtained irrespective of the state of child’s health on the deferred date
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 commence when the child is between 1 and 12 years old and risk will commence 2 years after policy commences, but 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.
Plan for your child wisely today. Do not give yourself a chance to regret on anything in future.