Child Plan – An Effective way to Provide the Financial Protection to Your Children

Countries like India where social security systems are not so efficient, and yet to be revamped, financial security of children is the most terrifying worry for most parents. One of the biggest reasons is the rising cost of education.

According to an online survey conducted by a renowned media agency, over 60 percent of parents told rising cost of education is the biggest worry for them. And this was without including the biggest worry of their untimely demise. The fear of meeting an unfortunate incidents and losing bread-winner’s life is another significant worry. As per the National Crime Records Bureau statistics, after every 90 seconds an Indian dies in an accident. Isn’t it horrible? What will happen to your child if you’re not there with them?

Even a thought of leaving your child unprotected, no assurance of their education or not sufficient bucks for their important milestones of lives, could troubles you.

The only tool to get rid of this ‘headache’ is one ought to get a child insurance policy of sizable cover. It not only pays out a lump-sum amount at the death of the life insured, but it continues paying to your child at their different goals of lives even if you’re not around.

Person next to your door may have some reasoning of not buying child plan-it costs more than a term plan. Of course, a child insurance plan of equal sum assured is more expensive than that of a term plan. But a term insurance policy pays out only when the life insured dies, while a child insurance policy remain enforced even after the demise of the life insured. After the demise of life insured, the premiums for entire policy period is waived off. The insurer takes the onus of paying premium on behalf of the policyholder, and it pays out all the benefits under the policy.

In addition, a child insurance plan makes sure you invest continuously making big corpus for your kids. A child plan is designed in such a way that it could fulfill all the financial needs of your children, whereas a unit-linked plan (ULIP) terminates paying lump-sum amount to the nominee after the death of the person insured.

The basic objective of a child insurance policy is even after the early demise of the parents, child’s important milestones of his life be it higher education, marriage, business, home or any other financial need should not be hindered. It covers the financial needs of children in case something unfortunate happens with the parents.

A child insurance plan can be taken on the life of either parent with child as the nominee.

Life Insurance is a Necessity not an Expense!

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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