What is a child plan?
Child insurance plans are designed in such a way that it will ensure the daily functioning as well as the financial support for the future of your child even after your unfortunate death or disability. The child plan is underwritten on the life of the guardian or the parent and not on the life of the child but it will be vested to them when they attain majority or when the parent demises.
A parent or a guardian has great powers to mold the life of their children, especially their future by investing into the right places in the present, at least in terms of finance which is very important in this unstable world. Children are really vulnerable, more without the guidance of their parents. So, it is extremely important that the parent or the guardians help their children out by investing into child insurance plans so that they are able to have a financially secured future and present in case anything happens to the parent and they are not able to look after their child who might find it difficult to sustain. Investing into a plan will help your child to dream big, the dreams which require money!
Why is taking up a child plan important?
The main reason or the purpose of taking up a child plan is to meet the needs of the child in various aspects of life. These aspects can range from their higher education to their marriage and their daily functional needs in case the parent is not able to provide for them in case of their absence. Most of the child plan insurance policies have an option to be extended. These plans will provide the coverage for all the risks that the child might be prone to during the tenure of the plan and will also cover for the extended term period. In order to get the best child plan, it is advisable to select the one which offers a long term as well as has good extension options. Even in the case of the survival of the guardian or the parent through the tenure of the child plan, the child will get the benefits of maturity.
Tips to compare!
When comparing different child insurance plans to get the best child insurance plan for your kid, you need to choose a one that will allow the easy transfer of the plan to the child. Child insurance plans, mostly, include an option for the vesting of the policy. The child plan, when taken up, is underwritten on the name of the guardian or the parent of the child for whom the plan is being taken. And, when the child comes of age which means that they are a major, which is when the child insurance plan will be transferred to them. So, you need to make sure to take up a plan that will automatically vest the plan to your child. The policy is also vested to the child when the parent or the guardian demises or is disabled and is not able to take care of the child. So, keep this is mind while comparing child plans.
Premium Waiver Option
Some of the child insurance plans have the option of a premium waiver. When comparing child policies to find the best one, you need to make sure to see if the plan has an option for the waiving of the premium. The premium waiver is an option that continues the payment of the premium of the child plan by the insurance company itself in the event of the death or disability of the parent or the guardian which leaves them unable to finish the payment of the premiums. Not all child insurance policies offer this benefit, so you need to find out if it does while comparing the plans. What happens is that the premiums are waived off the child and are paid by the insurance company for the entire time that the payments are due. What is does is it continues the plan and it functions in a regular way even if the guardians or the parents dies. So, if you want your child to be completely secure with the plan, it is advisable for you to select a child policy which has the premium waiver option available and will protect your child on your behalf even when you are not around.
Best benefits, not cheap plans
While comparing child plans, make sure that you choose a plan on the basis of the benefits that it gives and not how cheap the plan is. Sure, cheap plans are great but they might not cover all the benefits and might not provide a huge cover for the sum assured. So, taking up a child insurance plan which offers many benefits even if it is a bit expensive when compared to the cheap plan out there, it would be better for your child as they will at least get a good cover amount even when you are not around. All you would want for your child is a good future in terms of finance in case you are not able to take care of them in the event of your death or disability. So, taking up a plan which covers most or all of the benefits that you want your child to get as well as a plan that would gather a good sum assured which they can use for their education and career in the future will be a good option for you as well as them.
Make sure you compare all the child insurance policies and plans to select the best policy for your kid that will help them a great deal in your presence as well as in your absence. Invest into the child plans that will give the most amount of benefits and features to make sure you child has a financially secure present as well as future.