What is Children Plan?
Children Plan / Child Plan is a type of
life insurance plan. Children plan is specially designed to meet the increasing educational and other financial needs of your child. This is a participating plan which gives your children the freedom to make their dreams come true. This
insurance policy provides risk cover on the life of child.
Child insurance plans are an extension of Endowment, Money Back and in many cases
ULIP plans .
It is the Premium Waiver Benefit that secures your child future if something unfortunate is to happen to you. This makes them interesting, and a worth investing your money.
In normal Child Insurance plan:
1) One need to pay premium up to a predetermined term.
2) If Proposer (In most cases parents) dies and if PWB is taken (In many policy it comes by default)all the future premium will be waived, and child will continue to get all the benefit stated in the policy.
3) If Child dies
a) Before commencement of risk, Premium paid is returned
b) After Commencement of risk, S.A or accumulated amount whichever is higher is paid to proposer and Policy gets terminated.
4) If every thing works fine, On Maturity Child will receive amount as stated in the Policy.
For a child policy, normally risk commence after child completes 7 years or after 5 years of policy, whichever is later. These Child Policies pay Periodic amount so parent can use this amount to fund unforeseen expenses for child. Child Plan is ideal for you as it encourages you to save systematically and create a sufficiently large corpus for your child’s dream, be it higher education, set up a business or wedding.
