Why to Opt for Child Plans Instead of Regular Plan

Posted by PolicyX .Com
3
Jul 15, 2015
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Nowadays, everyone thinks about how to invest some money into various available investment options for safeguarding their future. Investing for his/her child is one of the top-most priority for any individual as it ensures that factors like rising cost of education and higher studies, healthcare and other related expenses are taken care of. Investing in term plans for overall coverage is a good option however, going by the specific needs of a child, a specialized child insurance plan makes better sense.

Apart from the rising costs, there are several other factors which make it necessary to have a child scheme instead of investing in other options. Some of the most commonly occurring questions that come in the mind before buying a child plan are:

-What will happen to your family after your death?

-From where will your kid get proper education?

-Who will provide funds to your child for a secure future?

-After you, how will your ward live a stable life?

As a parent, these questions may rise several times in your mind. Some chose to ignore them while some take it seriously and start finding the ways to secure their child’s future.

You might also be thinking on the same lines and maybe feeling a bit confused on how to go about it. So here is the answer- a child insurance scheme which assists your child financially at every important stage of his life is your best option. From education to marriage, a kid plan will be there for your child when you are not. A child policy will provide a fixed amount to your ward or nominee as stated in the policy document. In short, it will provide financial support for your child at every step like school, college, wedding, etc.

Benefits of Having A Child Plan:

·         Provides financial coverage to your child

·         Cost effective

·         Secure future aspects of your child

·         Provide peace of mind

·         Assist your ward in living a stable life

Now the question that arises is why opt for a child policy for your ward when there are many different options of investment are available like term, Ulips and much more?

The answer to that is fairly simple. Other investment plans which are available in the market have some limitations regarding the payment procedures, whereas the kid insurance scheme does not. A child plan is specially designed to meet a child’s need for a secure future whereas other plans doesn’t.

To give you further clarity on why to go for a it instead of a term plan, let us compare and discuss their respective features

Child Plan Vs Term Plan Vs Ulips

Yes, it is fact that the cost of a insurance scheme for your children is slightly more than that of a term plan. But, there are many different features which make it a must have policy instead of term plan for a secure future of your ward.

In a term plan, when you die, your beneficiary or nominee as per stated in the plan document will get the assured amount. This lump sum amount would not be able to assist your child in every vital stage of life, nor be able to carry the burden of rising costs. What will happen if you die when your term plan has just expired, it will not provide any amount to your family or your children. A child insurance policy on the other hand will cover all the financial needs of your ward continuously without any break which makes it better for your ward instead of a term plan.

The other popular investment option is in the form of Ulip which uses half of the premium for providing insurance coverage and invest the rest in equity or debt.

Child insurance scheme and Ulips are completely different as it provides complete protection to your child for every stage of his/her life, whereas a Ulip will provide a lump sum amount to your family & if you die then the investment in equity and debt will vanish. So it is not very useful for securing the future of your ward.

Which Is The Best Child policy For You?

Normally people have this question in mind, but there’s no appropriate answer to this as the type of insurance policy for  your kid depends upon the requirement.  You should carefully compare and then buy the desire kid plan which suits your need and which meets the future needs of your ward.

How to Choose the Best Child Insurance scheme

There are many companies in the market, which are offering child insurance plans like Max Life, HDFC life, Bajaj Allianz, etc. Online plans are cheaper as compared to offline. You will get maximum benefits at low prices from an online Kid insurance policy. What you have to do is a thorough comparison. There are many web aggregators that can assist you to choose a desired child plan for your ward.

 

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