Medical treatment: Hospitalization and medical care has become expensive
today. So, when your child needs the medical aid; the child insurance plan comes
to your rescue. By insuring your child's future through plans that provide such
aid you not only safeguard their health but also save on huge medical expenses.
Educational purpose: Child plan can be your superhero in disguise if your
child wants to pursue his/her career at a premium college. Education has become
expensive due to the rising inflation and so it is better to start early in order
to reap the advantages of advance & timely planning by having your child's education
Collateral security: Child future plan can act as an added security against
loans. In case of any need, you can use it to raise funds.
Financial support: The policy comes with an added insurance benefit. So,
when the parent dies the child/appointee gets the amount at the time of maturity
along with an annual payout every year. This helps the child to manage financial
requirements in the event of his/her parent's demise.
How does Child Insurance Policy work?
First you need to decide the cover amount and then accordingly fill the application
form. Next the insurance company will calculate the premium amount that needs to
be paid as per your cover amount. Then you need to choose if you want to make a
lumpsum payment or pay regular premiums. Once you have decided on the premium frequency,
you can start your policy.
In an unfortunate event of the parent's demise, the child/appointee receives a portion
of the maturity amount annually by the insurer and all the premiums thereafter will
be waived of. At maturity, the child will receive the entire cover amount.
If the cover amount is never used until the maturity then the entire sum assured
is given to the child. The parent can partially withdraw in case of an emergency
for the child's purpose only.