Child Plan: An Overview

Even that inconsequential achievement brings a seamless smile on your child's face. It splatters cheerfulness and delight all around. Imagine the day he will bring laurels to the family, there would be no bounds to your joy and elation, isn't it? Merely reflecting on the thought brings a pure contentment and a big sigh of relief.

May you always find that bliss in your life and may your child be the pride of your family always. But with changing times, needs will also change and there will be a demand to contribute your part to accomplish the goals your child will set for himself, especially in terms of finance. Of course, you may be accumulating all your wealth to sponsor your child's dream but have you taken inflation into account? Where would you be after 15-20 years from now? Would you be earning or retired? Would your savings be sufficient to fulfill your child's every need ?

A systematic, long term financial plan for your children, in short a child plan is all that you need to possess for your child's future expenses and make his dreams come true. Best child insurance plans are the ones which provide futuristic maximized financial assistance to your child for longest period of time. Let's have a look on the overview of a basic child plan.

If you are concerned about these unfortunate possibilities, you must also be apprehensive about what you can do to create a shield against these untoward moments. Besides unlucky times, death is a certain thing to happen in everybody's life. If you are earning for your family, you certainly owe them as they will be the first ones to get affected in every manner. Of course, nothing can replace that emotional void but at least you can make an alternative arrangement to what you provided financially to your family. Life insurance is that alternative arrangement and a secondary plan which would keep your family financially secure for the ample amount of time.

What Is A Child Plan?

In the child plan, protection is combined with investment in such a way that you are able to avail benefits at various stages of life. The core focus of the plan is to provide for child's need, be it education, marriage, commercial venture, a dream house or any other goal that requires a substantial amount of capital.

While you are fulfilling the future needs of your child, the plan simultaneously provides return on your investment and provides the protection on the event of death and through other ways as per the riders chosen by you.

The number of years picked for the investment cum protection plan depends on your age as well as your child's age at the time of acquiring the plan. The maturity time overlaps the prime stage of your child's life like 18, 21 or 24, when the child actually needs money to accomplish various objectives. Moreover, you have the option to avail sum insured at fixed intervals of time.

This is basically a plan that grows your money while your child grows in age and provides benefits when you actually need it no matter whatsoever uncertainty you face. Child plans are available in various forms but the basic ones are traditional endowment child plan and unit linked child plan. Like other life insurance plans, traditional child plan has fixed pay-out, while in unit-linked child plan, you can choose your investment instruments and payout will be market-linked. Many child plans have 'waiver of premium' as an inbuilt feature in them and for additional coverage, you can buy riders like 'payer benefit' and 'accidental death benefit' which are subject to availability as per the insurance company you choose. The investments made in child plans are provide rebate on the tax that you pay to the government. Under income tax law, section 80 provides tax exemption on the investments made towards insurance.

Every insurance company may have a unique child plan with distinctive riders and discounts. So you need to compare the quotes from various companies online and pick the child plan that suits your individual requirements.

GET QUOTES

QUICK INFO

HAVE QUESTIONS ?

LIFE PLAN TYPES