Child insurance plans are life insurance policies designed with a specific goal in mind—securing the financial future of the child. These plans help parents plan for their child’s future and are, thus, popular.
There are different child plans available in the market. A little bit of research is needed to find the child plan in India. So, here are some tips that can help you pick out the child plan in India:
Tips for Choosing a Child Plan in India
- Tip 1 - Opt for a plan that has the inbuilt premium waiver benefit
The premium waiver benefit is an important feature of a child insurance plan. Under this benefit, if the parent dies during the policy term, the policy does not get affected. The future premiums are waived off, and the policy runs unaffected until maturity. The insurance company pays the premium on behalf of the parent so that the corpus planned for the child does not suffer.
The premium waiver benefit is, therefore, a beneficial add-on. You should look for child plans that offer this feature as a part of their inbuilt coverage benefit. This would ensure that the parents’ death would not affect the corpus, and it would accumulate as planned.
- Tip 2 - The plan should offer flexible benefit payment options
This is particularly relevant in the case of maturity benefit. Plans that have flexible options for payment of maturity benefits are better. They give you the freedom to choose the payout mode that you desire. You can, thus, choose to receive the maturity benefit in instalments, in the form of money back benefits, at the important milestones of your child’s life.
Alternatively, you can opt for the lump sum payment if you want to accumulate a corpus for funding your child’s higher education.
- Tip 3 - Look for plans with guaranteed maturity benefits
While flexible maturity benefit payments allow you to choose the payout mode per your requirement, a guaranteed benefit protects the corpus created. If the maturity benefit is guaranteed, you can plan for the corpus you need for your child’s future. Moreover, an adverse market situation would not hamper the corpus that you have created over the years. Thus, plans with guaranteed maturity benefits are more secure and can give you peace of mind.
- Tip 4 - Optional riders are an added benefit
Riders are optional coverage benefits that help in enhancing the scope of coverage of the basic policy. For instance, the accidental death benefit rider enhances the death benefit in the case of accidental death. Similarly, the critical illness rider provides financial assistance in the case of major illnesses.
With riders, you can avail of a comprehensive scope of coverage. So, child plans with additional riders give you the flexibility of customising and enhancing the coverage of your policy. These plans, therefore, are better than those that do not offer riders.
- Tip 5 - Affordability is important too
Lastly, the best child plan in India would be the one that has affordable premiums without compromising on the coverage. In other words, the plan should offer a comprehensive and flexible scope of coverage while the premiums should be affordably priced.
Things to Remember When Buying a Policy:
- Match the policy tenure to the age at which you would need funds to meet your child’s needs. For example, if your child is three-years-old and you would need funds when your child turns 18, opt for a term of 15 years.
- Understand the policy benefits properly.
- Choose the premium payment mode per your convenience. Pay the premiums within the due date to enjoy the full benefits of the policy.
- Opt for suitable riders for a comprehensive scope of coverage.
If you are a parent, it’s natural that you want to do all you can to secure your child’s future. Invest in the best child plan in India and ensure that your child’s financial needs are taken care of even if you are not around. Future Generali India Life Insurance also offers child insurance plans in India.
If you are still visit Future Generali India Life Insurance and check out the child plans the company has to offer. Choose a plan that fulfils the parameters mentioned above so that you get the most out of the plan.