Children’s plan is a mix of investment and insurance that usually aids in financial planning for kids’ future needs and requirements at the right age. You can protect and secure the future of your child with child insurance plans encompassing child education plans. Under this policy, life cover is available as a lump sum payment at the conclusion of the policy term. This is not it; such plans also offer coverage to your child with flexible pay-outs at the crucial milestones of the child’s education.
Types of Children’s Plans
Mostly all the insurance providers offer child insurance policies as a vital insurance product in the portfolio. These child plans may vary on different parameters basis the individual priorities and needs and come handy with customized and tailor-made features.
Different types of Children’s Plans in India are:
- Single-Premium Child Plan- The policyholder pays a lump sum amount in the form of a single premium for the entire policy term and stays worry-free from remembering the due dates of premium payment. You’ll not have to come across any hassles of arranging finances for the premium payment. Some insurance providers additionally offer appealing discounts or reduce the premium on child plans.
- Regular Premium Child Plan- Unlike a single premium child education plan, regular premium child policy offers you flexibility on payment of premium. You can pay the premium monthly, quarterly, half-yearly, or yearly.
- Child ULIP- Child ULIP plan gives you a three-prolonged benefit, along with higher insurance coverage, contribution in the equity market, and disciplined investments. Three benefits mean that the nominated beneficiary, i.e., the child receives the sum assured on the demise of the insured parent or guardian. The future premiums are waived off and the maturity amount is paid when the policy matures, making sure that the future dream of your children is fulfilled.
- Traditional Child Endowment Plan- When it comes to the child endowment plans it is essentially a traditional life insurance plan that provides security and savings. It enables you to save over some time and on policy maturity receive the lump sum amount. A child endowment plan will act as a financial wherein the financial objectives for the benefit of your child will be fulfilled. The premium is invested in debt instruments while the decision is kept with the insurance company. The bonus payable at maturity decides the returns.