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Child plans help in building a corpus for the child’s future needs is no hidden truth. But what many of us do not know is that they provide two basic features: term insurance cover on parents’ life, which provides a sum assured to surviving child and regular contribution into a saving portfolio which matures to gives a financial cushion and funds to pay for college education, marriage etc. Help you to make your child future secure. An effective child plan helps the parents against the constraints such as inflation, and rising cost of education and also helps ensure that there is enough saving for the child to start their dream future. Payouts in a child plan are usually interval based or a lump sum amount in case of a ULIP. The advantage of a child plan in comparison to other investments is the risk cover provided by these plans. The payout is assured to the child even if the policyholder is not around. Child plans are helpful for your child education, marriage and seed capital for business. Child insurance plans can be both traditional and unit-linked (ULIPS). Both these plan types are completely different in their working and also offer a policyholder different set of returns due to their construct. While ULIPS are market linked and carry market fluctuation risk, the traditional plans, though are a little higher priced, offer stagnant and steady returns. Such plans are better suited for parents who do not have a large risk appetite.
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Child plan, insurance, term cover,
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