Nowadays, the most important responsibility of parents is to secure their children’s future. Inflation is going up and up everyday and it seems that it is hitting education sector the most at this time. So if you are a parent, then you need to get your child’s future secure so that you can meet rising needs of your children.
To secure your child’s future you can take any child insurance policy which is being served by almost all insurance companies. These insurance policies will secure your child’s future and will also meet the rising cost of your child’s education.
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Importance Of Child Insurance Plans In India
Child insurance is an investment for bright and secure future of your child. Here are the key benefits of child insurance:
Currently, child insurance policies are the most affordable policies in the market compared to other life insurance policies.
Investment cum Insurance
Child life insurance is not just a life insurance for your child, it is an investment done by you too. Most child insurance policies can double your money with same monthly or yearly premium from you. Suppose you invest when your child is an year old. So, by the time he will be 18, you will get double of your money by paying same 17 year old premium.
Say, unfortunately your child meets with an accident and it makes him permanently disabled, then, in that case insurance can help you meet the treatment expenses.
The life insurance that you will buy for your child will protect the future as well as health of your child. Say, if you buy insurance for your child when he is very young and when he grows up he develops a health illness which is there in the family history, then this insurance can help you meet the doctor bills.
Child insurances are a decent mode of savings, and when you get returns from those policy they are Tax free too. So you can invest in them without worrying about taxes.
What It Covers?
These insurance policies can cover almost all types of expenses which your child might face when he grows up. For instance, what would you do if your child wants to pursue higher studies that involve high expenses? What if you do not have sufficient funds to sponsor your child’s education? In such situations, your child’s life insurance will come for rescue. In an average, an MBA degree from a good B-School will cost around 15 Lac, so at that time these insurance policies can help you to pay your child’s fee which you cannot bear on your own.
These insurance policies also cover health of your child. Suppose if your child meets with an accident, then you can use this insurance policy to pay hospital bills. So in total these policies can be used to cover almost any type of expenses from your child so that his future stays secured.
Riders of these policies
Riders are the additional benefits or extensions that you can get from your company, which you may have to pay some money for. There are different riders offered by different insurance companies. These riders include critical illness; accidental death benefit; total and permanent disablement rider and more. You can get these riders added if you want to, for additional coverage and benefits.
Waiting period is that time until when you cannot make any claim. After the purchase of policy, during waiting period, no claim is paid except those that have resulted due to emergency situation. Every insurance company has its own waiting period.
Suppose your child is aged 6 months and you buy insurance policy for you child. In that case, the company can implement a waiting period of say, 10 years, so until 10 years you cant make any claim and you will have to wait for 10 years before you can make any claim. So while purchasing any policy you must read the terms of the company which will help you know what is the waiting period and does it suit you or not.
Some popular Child Insurance plans in India :-
- HDFC Children Plan
- Tata AIG Life Insurance Star Kid
- SBI Life Smart Champ Insurance
- Bajaj Allianz Child Plans
- Reliance Child Plan
If you have not yet purchased child insurance policy for your kid, then we suggest you to do it right now. It will promise a more secure future for your child by taking care of health expenses, education expenses and more.