How to buy the best child plan in India?

A child insurance plan offers a financial security to your child’s future at all crucial life stages. These life insurance plans are mostly money-back plans that make your child’s dreams come to life. Besides, in case of your death (parent) it offers coverage to your child’s future. A child plan is useful in many ways.

This article will throw light on how a child insurance plan works.

A better understanding of a child plan

In a child insurance plan, the child would be the beneficiary whereas the parent would be the policyholder. The intention of buying a child insurance plan is with a motive to offer benefit to the child.  An assured amount and money backs are promised by a child plan in case of the parent’s demise and the plan continues to be in force to offer benefit to the child.

What does a child plan cover?

A child plan in India offers the below mentioned coverage’s:

• Money back: The child plan offers money back during certain phases of your child’s life. Choosing this maturity benefit is solely your decision. Say for instance, you may wish to take this benefit when your child completes his SSC and starts his college. Later you may receive the small amount of funds for his post-graduation and then for his marriage. This is how child plan helps to fulfil your child’s dream and offer him the best in life.

• Death benefit: In case you as a parent suffer an untimely death, the child plan would offer a death benefit to your child. This way the funds received from the death benefit would be used for your child’s education and also fill the financial gaps that may occur due to sudden stop of regular income.

• Waiver of premium: In case of your death, the life insurance company would make payments of the premiums on your behalf. This way the child plan would continue to be in force and your child yet can keep receiving the benefits without any problems whatsoever.

• Support during illness: A child plan also provides a financial help in case your child is sick and requires hospitalization. This way you can get your child treated in a good hospital and keep him healthy and safe.

How to choose the best plan?

It is important that you choose the best child plan for your child to make it work as per your needs. A child plan should ideally have the following attributes:

• Good features– A child plan should offer benefits in such a way that your financial goals that might have set for your child’s bright future should be taken care of. Read the child insurance policy document and verify whether they can actually meet your requirements. Buy one only if you are confident enough of the plan fulfilling your goals.

• Affordable – It makes sense to opt for a child plan that is reasonable enough to offer the best cover for their precious children. You shouldn’t be struggling to make the premium payment. In short, the premiums should be lighter on your pocket.

• Claim settlement ratio–A claim settlement ratio highlights the capacity and willingness of a life insurer to settle your claims if need be. Higher the claim settlement ratios, higher are the chances of your claims getting settled hassle-free.