Types of Child Insurance Plans
Published On Jun 25, 2021 10:00 AM By InsuranceDekho
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As a parent, you want your child to have the best of everything whether it is the best education, the best schooling, the best lifestyle , marriage and so on. You being a parent work day and night just to make your child live their life without any hassles coming between the steps of their journey. Being a parent and working hard just to fulfill your responsibilities towards the child is a challenging task for every parent at one time or the other because life is full of challenges. It is just an individual who needs to overcome those challenges just by pushing those hurdles back.
Child Insurance is a plan which helps you in fulfilling your goals by securing the future by giving wings to your child's dreams. It aimed to safeguard the financial future of your child as well as take care of their needs in case of an unfortunate event. These plans act as a solution to all your problems and make you live your worry free life without any stress related to the child's future.
In this Article, we will keep a focus on what types of benefits Child Plan offers and Different types of Child Plans offered by Insurance Companies to make you understand the plans better and in a clear way so that you choose one according to your suitability.
What Types of Benefits does the Child Plan Offer?
- Child Plans provide a life cover facility to your children and families to secure their financial future when you are not around.
- These plans offer waiver of premium benefit under which premiums waived off in case of demise of yours.
- You can enjoy certain tax benefits under Child Plans as per the prevailing tax laws and Section 80C and 10(10D).
- Partial Withdrawals facilities are available by Child Plans under which you can withdraw the money from the value of the fund depending on your need.
- Loan Facilities are available to meet unfortunate financial requirements.
- You can avail additional bonus facility on long term savings.
Types of Child Insurance Plans
There are varieties of Child Plans available in the market. These Child Plans vary on different points based on your needs and requirements.
Child Endowment PlansIt is an essential traditional life insurance plan that provides you with the facility of security and savings. Child Endowment Plans enable you to save for some time during the policy and receive a lump sum amount on maturity. The bonus is payable at maturity.
Regular Premium Child PlanThese Plans offer you the flexibility of choosing the premium payment mode. Payments can be done monthly, yearly, half yearly, or quarterly.
Single Premium Child PlanUnder this plan, you need to pay a lump sum amount in the form of a single premium for the entire term. You do not need to worry about remembering the due dates of the premiums. Some Insurance companies provide discounts on the payment of premiums.
Child ULIPIt provides you with triple privilege benefits along with Insurance coverage , contribution in the equity market and regular investments. Child received the wholesome assurance and future premiums payments waived off if in case of unfortunate events such as death of a parent. It makes sure that the future dream of your child is fulfilled.
If you as a parent do not want to take any kind of risks associated with your child's bright future and dreams should look forward towards purchasing a well beneficial plan that provides long term benefits to your child even in your absence. The plan provides a place for investment for your child’s future and also guarantees the promised corpus even if you die prematurely. All the types of Child Plans mentioned above are best in their own ways depending upon your requirements.
Also Read: How Child Plan Helps You Plan For Your Child’s Future?
The Most Important Plan of All Investment Options: Child insurance
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.