FAQ - Child Plans

Q.
What is a Child Insurance Plan?
Ans

As a parent, we always dream of providing the best of education and a secure life to our children. To ensure that our child's dream are fulfilled it is vital to plan your finances to provide a secure future for your loved ones. When you plan for your child's future the most important aspect is to provide quality education at all steps of their life. However, rising cost of education is troubling all parents. The cost of Education in India has nearly tripled in the last 15yrs. Probably there will also be an increase in the course fee over the next 15 years.

Let us have a look at the cost of Certain Courses: 

Courses

Cost In Lacs 2015

Cost In Lacs 2030

School Fee for 1 Year

1

3

Engineering fee for 4years course

5

20

MBA Fee for 2years Course

12

35

Commercial Pilot Course Fee

60

2 Cr

MBBS Fee for 4 Year Course

12

60

Note: The above numbers are approximate cost and may change depending on the College/ School you might choose. 

Looking at the Above Numbers, you might feel the urge of buying a Child Plan to secure their Future. It acts as a savior and keeps you and your loved ones protect all the time. 

As a responsible parent, you always want the best for your child and want him/her to have a comfortable and successful life. A Child plan is a savings cum investment plan which is designed to fulfill their future goals and financial needs. The plan helps you build a corpus which in return provides your child with regular finance to fulfill future goals, even if you are not around to fulfil them. 

A Child Education Plan provides you with various benefits such as Life Insurance Cover, Death Cover, Building a Corpus/ money for the Child's future needs and the option of adding specific riders when required.  However, there are many variants of Child Plans available in the market. It is important to compare the child plans before choosing the right product. There are certain rules that implies while choosing the right product. Let us take look:-

  • The Parent should insure himself or their spouse
  • The Child should always be a Beneficiary 
  • Try to buy a Child Plan as early as possible (Between 1 to 3yrs)
  • The maturity of the plan only happens at the time of higher education or marriage
  • In the event if something happens to the policyholder i) the entire sum assured is paid to the child and ii) the policy continues without any break (here the life insurance company pays all the future premiums). 

To know which one will suit your needs please click here to get the best quote that matches your expectations.  

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