We do value our children more than anything in this world. We plan out most of our financial goals in accordance with the growing kids. Everyone looks forward to buying a child insurance plan. Here are a few things to keep in mind while making a decision.
What is a child plan?
A child insurance plan is specially designed keeping in mind the future financial requirements of a growing children. The plans are usually taken early in life when the kid is 0 – 5 years of age and these plans mature when the child is 25 years old. LIC’s Jeevan Tarun is an popular children plan.
- The life cover for children starts from the age of 2 years. Though the plan can be taken earlier but the life cover for the children starts only when they attain 2 years of age.
- A child plan must be taken with PWB premium waiver benefit. With PWB in place you need not worry abut the future financial needs of the child whether you are there or not. A plan with a PWB will continue to be in force even if the policy buyer dies during the policy term. The policy maturity will not be affected in such cases.
- Most of the children plans will mature when the child is 25 years old.
- You can take the benefit of tax exemption on premiums paid for your child’s policy. Parents, grandparents or legally assigned guardian’s take plan for children.
- Loan for higher education. A policy can be used as a collateral for taking a pre approved loan for financial support in the higher education.