#Child Plans | 12 MIN READ

Get a Hand That Protects Your Child Even In Your Absence

When your child was just a bundle of joy, you personally attended to all matters from changing nappies, washing bottles to preparing food with care. Now, you keep watchful eye whether it is the swimming classes in baby pool or the child’s experience in play school.

Of course, you will gladly do more as your child grows up. But what happens if your sudden exit happened from your child’s wonderful little world? Who will take care of the child’s present and future?

This is where child plans can be so useful. They are tailored to protect the immediate and future interests of the child.

Among the many features of child plans provided by life insurance companies, the premium waiver feature is a stand out feature. Here’s how it typically works in tandem with other major features of child plans.

In the event of an untimely demise of a parent, the beneficiary child gets the life insurance amount, or the policy’s sum assured. This helps to meet immediate financial needs like covering day to day expenses.

When you have a premium waiver feature in a child plan, despite the demise of the insured parent, the plan continues. Typically for child unit linked insurance plans (ULIP), the plan continues without any insurance cover. The money already invested, stays invested, till the end of the term for the child plan, helping the money grow.

In case of child ULIPs, since investments are typically made in funds that invest mostly in equities, over a long period of time, the ULIPs typically receive high growth and the savings is substantial. This helps the surviving parent meet high costs of child’s higher education.

For a child, can there anything better than caring and secure hands of a parent? That’s not to forget the comfort of parental embrace. Fortunately, you can turn it into a long-lasting legacy even in your absence with child plan having a premium waiver feature.