Children Plan / Child Plan is a type of life insurance plan. This plan help you save and gives your children the freedom to make their dreams come true. This insurance policy provides risk cover on the life of child.
Children Plan / Child Plan is a type of life insurance plan. This plan helps you to save small amount from today and gives your children the freedom to make their dreams come true. This insurance policy provides risk cover for the future of your child. When a new child comes to a family there is happiness all around but the parents should start planning their kid’s future from the same day. As a parent we forget our life for our kids but think once the better financial planning can solve all your life trouble. It’s not necessary to do a heavy investment for your child at one time even gradual investment for long time makes sense to the responsible parents.
Importance of Child Plan:
As per the current scenario life has really become unpredictable. In that case safety of your own ones bothers a lot. Being a caring parent changing circumstances for your kid like child's education, marriage etc mandate that the financial planning has to be done to meet these objectives within the given timeline.
Why Child Insurance plan?
Every parent dreams a bright future for their kid’s .But to achieve that dreams we have to make sure that the savings for that time should be started from day one. Education is always a major requirement for our child. Considering today’s scenario where education is becoming expensive day by day. After education the next move is for settling down that includes marriage expenses. Among all the planned expenses we can’t ignore unforeseen expenses such as illness etc.
To handle these situations we should start investing in best child insurance plan where at the right age of our child we can financially support him. There is several type of insurance policy offered by Insurance companies for your child in their portfolio like
ICICI Prudential: ICICI Pru SmartKid Regular Premium | ICICI Pru SmartKid Premier
LIC: Komal Jeevan| Jeevan Anurag | Jeevan Kishore | Jeevan Chhaya
Bharti AXA: Bharti AXA Life Bright Stars Edge| Bharti Axa Life Power Kid Insurance Plan
Aviva Life Insurance: Aviva Young Scholar Advantage | Aviva Young Scholar Secure
HDFC Life: HDFC Children's Plan | HDFC Unit Linked Young Star II | HDFC SL YoungStar Super Premium
Max Life Insurance: Max Life Shiksha Plus II
SBI Life: SBI Life Scholar II
Birla SunLife: BSLI Children's Dream Plan | BSLI (Bachat) Child Plan
Some are pure traditional plan and other market linked. Any accumulation plan is based on the strategy of assets allocation via Systematic investment plan (SIP) so as to generate returns over time.
The success of Child Plan is to start early while deciding on the scheme to opt for. It is necessary to arrive at the intervals at which regular withdrawals would be required. |
Want to know how rising cost will effect your child/Grand child academics. Child Education Cost Calculator
In normal Child Insurance plan:
1) One needs to pay premium up to a predetermined term.
2) If Proposer (In most cases parents) dies and if PWB* is taken (In most of the policies 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.
In a child Insurance policy, normally risk commence after child completes 7 years or 5 policy years, 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.
*It is the Premium Waiver Benefit that secures your child future if something unfortunate happens to you. This makes them interesting, and a worth investing your money.
Insurance is the subject matter of solicitation.
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