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Things To Keep In Mind While Buying a Child Plan

Published On Jun 08, 2021

A child policy is a customized savings cum insurance instrument that lets you fulfill your child's financial needs. In general, a child insurance plan offers insurance and savings coverage. The insurance policy cover helps shield your child from any tragic life circumstances, such as the untimely death of the parent.At the same time, the savings part of the child plan aims to fulfill the child's financial needs with a disciplined, long-term return on investment.

Things to Keep in Mind While Buying a Child Plan

Child plans help you fund your child’s expenses in the near future, this plan also offers a sum assured in case you pass away during the policy term, this way you can ensure your child adequate financial resources to achieve his goals and aspirations. While purchasing a child life insurance plan, you must look for a plan that will offer you the maximum number of benefits because this plan will become an income source for the child. 

Following are some things to consider when planning to purchase a child life insurance plan: 

1. Claim Settlement Ratio

The claim settlement ratio or CSR is a statistic that is a statement of the performance of the insurance provider in the payment of insurance premiums. The higher the claims payout ratio (CSR), the higher the amount of claims received by the insured. It's a good idea to go with an insurance firm with a strong CSR.

2. Coverage Amount

The amount of coverage, in turn, relies on a variety of factors, such as your age, annual income and lifestyle preferences. As a result, you must equate multiple child insurance policies depending on the amount of benefits available – by choosing a child benefit that provides full coverage to ensure your child's future financially at manageable rates payable.

3. Policy Tenure

In order to optimize the advantages of a child policy, it is wise to select the longest possible period of insurance coverage. You should make sure that your child's plan gives ample financial security to your child during his or her developing years. Before picking one with the most extended coverage name, make sure you review various child insurance policies.

4. Add-on Rider Advantage

Many insurance providers are giving you the option to maximize your child plan policy rewards by incorporating rider add-ons. These riders offer an extra amount of money, above and above the basic policy benefits, toward real contingencies in life, such as unintended injury and death, and on diagnosis, serious illness.

5. Maturity Benefits

A child insurance plan provides for the payment of a large amount of money accrued over the term of the policy, following maturity. It is recommended that you select a child policy that provides a full maturity value for the price you have spent.


As a parent, you want to make the most of everything possible for your kids.Child Insurance Plans are helping you with your effort and helping to protect their future by giving wings to their hopes. Providing triple premiums, savings and investing opportunities, the child plan guarantees that money is not a barrier while you're on the way to meeting significant milestones for your child. So keep these points in mind before securing any policy for your child.

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