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CHILDREN'S
POLICY |
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Children's
Policy
 What is Children's Policy?
How is it beneficial to
me?
Who should buy this plan?
What
is Children's Policy?
Children's
insurance includes policies
through which parents
or legal guardians can
provide for life insurance
for their child from birth.
The risk cover commences
from the child attaining
the age of 12 / 17 / 18
/ 21 (known as the Date
of Risk), and will vest
itself on the child upon
his or her attaining majority
on completion of age 21,
if the case demands so.
Until the child attains
majority, the parents
are the owners of the
policy and have to pay
the premium periodically.
It is important that these
policies are considered
only after the insurance
portfolios of the parents
have been completed. The
family's insurance budget
should primarily buy as
much life insurance as
possible on the lives
of the breadwinner and
should not be frittered
away on the children's
lives as their insurance
is useless in the event
of any premature death
of the breadwinner. In
fact, those lives should
be insured that have maximum
economic emphasis. Quite
often, these policies
lapse if and when the
premium paying breadwinner
of the family die before
the vesting age. After
all, the child may not
be in a position to continue
paying the premiums.
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How
is it beneficial to me?
Children's
policies are designed
to enable a parent or
a legal guardian of the
child to provide insurance
cover for the child. With
such policies, you as
a parent will need to
pay the premium for your
child's policy depending
on the plan and the term
till your child attains
majority. The risk cover
on your child could start
from 7 yrs, 12, 18 or
21 years of age depending
on the plan taken.
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Who
should buy this plan?
Those,
who plan to provide their
child with life insurance
cover for a future date
when he turns a major,
can take children's policies.
The policy envisages two
stages, one covering the
period from the date of
commencement of policy
to the deferred date that
is the commencement of
the risk. No loans are
granted against this policy
during the deferment period
and no risk of death is
covered until the child
attains the prescribed
age as per the policy
document.
If
the child were to die
during the deferment period,
the policy will stand
cancelled and a sum of
money equal to all the
premiums paid without
any deduction becomes
payable to the proposer.
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