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in your child's future with Child insurance plans. Help your children live
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Wednesday, 20 July 2016
Tuesday, 19 July 2016
Make Your Child Plan Comprehensive with Riders
Every parent dreams of a bright future for their child. They
want their children to be the best doctor in town or get into nowhere less than
IIT, MIT or Harvard. In addition, every parent dreams of a wedding for their
child that has all the paraphernalia of a typical big-fat Indian wedding. So,
from the time a child is born, you as a parent would explore every option
available to fulfill every dream for your child. However, it might not be
possible with the resources you have in hand. You need to then explore other
options like investments and must invest intelligently.
One of the best investment options is child savings plans
that will provide you money at key milestones in your child's life. These
policies and plans ensure continuity and provide the money even if you are not
alive during the key milestones of your child's life. In addition, you can opt
for insurance riders along with the plans to added value and power to the
plans. Your child will thus get the additional benefits that you opted for at a
little extra premium.
Riders and
Child Plans
You must therefore compare and opt for the best child
insurance plan that meets your need but is affordable too. An online child plan
is a good option that helps you in easily comparing various policies and then
selecting the best child plan. You must also look for plans with riders and
similar features that make your policy more powerful and useful. Riders are
additional features that you can opt for with your plan at an additional
premium amount.
It is up to the insurance company what riders include in
their policies, whether to make them optional or part of the policy, or whether
to exclude them from their policies altogether. Riders are meant to give you
and your child a more secure and a financially stable life. It is therefore up
to you to select the riders that you need. An extra premium would give that
extra power to the already powerful insurance policy.
The typical
riders that come with child plans are:
•Payer benefit
The most valuable riders are those that are needed to ensure
that the policy does not lapse in case the insured does not survive the term of
the policy. The child is then paid a lump sum amount if the policyholder is no
more.
•Waiver of premium riders
In case of death of the insured, future premiums are waived
off for the child. This ensures that the child doesn't have the burden of
paying the remaining premiums, which is then paid by the company.
•Dreaded diseases
In case of a dreaded disease, a lump sum amount is paid for
the treatment of the child.
•Personal accident
benefit
In case of an accident, a lump sum amount is paid for the
treatment of the child.
The death of a parent would disturb the life of any child
emotionally and financially. It is therefore up to you to select the riders
according to your needs. Riders make your policy very strong by adding variety
and range, so must be added cautiously.
Best Child
Plan provides financial support for your child education. We
helps you to compare choose best child plan from leading insurer in India.
Source: http://blogs.rediff.com/childplans/2016/07/19/ritikashah11998-20/
Monday, 18 July 2016
Monday, 4 July 2016
Why Is Waiver of Premium Rider Important In Case of A Child Plan?
A child plan is essentially bought with the purpose of
providing adequate financial security to a child during his growing years. It
serves the following two purposes:
Provides financial support at crucial milestones in a child’s
life like higher education, marriage etc. with pre-planned payouts while at the
same time providing maturity benefits too.
Unlike regular life insurance policies where the policy
ceases to exist after the death of the insured, a child plan continues till the
maturity of the policy. It not only provides a death benefit to the child, but
also the maturity policy proceeds of the plan at the time of maturity. This is
where the waiver of premium rider comes in.
What Is
Waiver Of Premium Rider?
This is a benefit provided by the insurers under which the
child need not pay any further premiums in case the insured dies during the
term of the plan. All future premiums are waived off and the insurer pays
remaining premiums towards the policy. In some cases, the insurer also provides
this benefit if the insured is diagnosed with a critical illness.
Why Is The
Waiver of Premium Important?
It helps to keep the policy active till the maturity date so
that the child receives financial benefits as per the policy terms at important
stages of his life
The child is relieved from the liability of arranging funds
to keep the policy active as future premiums are paid by the insurer.
The child gets double financial benefits: first, at the time
of death of the insured in the form of an entire sum assured and secondly, at
the time of maturity of the policy in the form of maturity benefits or fund
value depending on the type of the child plan along with any bonuses, if
applicable.
Important milestones in child’s life like higher education,
marriage etc. will not face any financial hiccups
Elaborating
With a Case Study
Mr. Arora bought a child plan for his 2 year old son for a
sum assured of Rs. 15lakhs for a term of 20 years. Unfortunately, he passes
away after 7 years of buying the policy. At this point, the insurer will pay
the entire Rs. 15lakhs to his son (nominee) as a death benefit and will waive
off, the future premiums pending for 13 years. The policy will remain active,
the premiums will then be paid by the insurer and if it’s a traditional plan,
the child will be paid the maturity benefits at the time of expiry of the plan
and if it’s a unit linked child plan, he will receive the maturity value.
In case the insured outlives the term of the plan, even then
there are maturity benefits depending on the type of plan he has selected. In
short, it is a win-win situation for the child as his upbringing and financial
needs are well-taken care of till he grows up to be an independent man.
Waiver of
Premium as an Inbuilt Benefit or a Rider?
A lot of companies offer this benefit, but some of them make
it a part of basic benefits offered in the plan and some charge a nominal
amount of extra premium to add this feature in a basic child plan.
Child Plans: These are the insurance plans bought by the
parents to safeguard their child’s future in case of the parents’ demise. These
plans also double up as an investment tool that provides financial support to
the child at important stages of his life like at the time of higher education,
marriage etc.
The term plan ends with the insured’s death. The nominee gets
the sum assured as a lump sum payment and the policy ceases to exist. A child
plan carries on even after the death of the insured. The child will get the sum
assured at the time of the death and the policy will continue till the
expiration of the entire term when he will receive the fund value as part of
the maturity benefits.
This feature is only available for the child plans.
Here the insurer waives off the premiums payable on the policy after the death
of the insured. The remaining premiums on the policy are paid by the insurer
till the policy term ends. There is no such benefit offered under term plans,
which cease to exist after the death of the insured. The nominee is only
eligible for death benefits and has to buy a new insurance cover/investment
plans for future coverage.
Source: http://blogs.rediff.com/childplans/2016/07/04/ritikashah11998-19/
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