Basics of Child Insurance Plans: Education cost in India is becoming very expensive with each passing day. Therefore, it is necessary to plan for your child’s education well in advance. Insurance companies in India provide a wide range of online child insurance policies.
At a defined period, these plans offer a specific payout to a child. In fact, if something unexpected happens to a parent, then the child receives the sum assured on maturity and the interim premiums are also waived off.
Even if the return from such child plans is relatively low as compared to other insurance products but these returns are guaranteed. Usually, the premium amount depends on the age of the child and proposer. So, check child insurance age limit while selecting the right plan. Child insurance age mainly varies from one plan to another.
With the help of the plan, a child can easily fulfill different goals of his life, like education, marriage, setting up business etc. This insurance is designed to cover a child’s financial future. Generally, these policies are calculated to mature at important events in the child’s life, such as attaining college-going or the wedding.
As a parent, you always wish a successful career in life for your child. Apart from child’s education, the parent also dreams of a lavish wedding for them. Child insurance India supports a child with the lump sum money in case of parent’s sudden death.
Purchase a child plan when you get a rough idea when you will need funds for your children’s education and marriage. In a basic child insurance India, the life assured is the parent and child is just the beneficiary. Some traditional policies also offer risk coverage for the child.
Parents need to decide on a sum assured which parents wish to receive, in case of their sudden death. The sum assured is paid to the beneficiary on the demise of the parent during the policy term, so that recipient can fulfill his needs.
The amount paid to a child on the maturity of a plan can be utilized for the child’s secure future. Today, some insurers give double benefits when the sum assured is paid on death and at the maturity of the plan. Buying a child insurance online has a number of benefits and hence, many insurance companies in India would be willing to offer these plans.