Now days all Insurance companies are advertising Child Insurance Plans.
But most of us dont undestand what they do for us.

Being a conventional insurance plan returns from this type of plan is not very attractive compare to Unit Linked Plans. In fact it is possible for the investor to select alternative investment route which will provide higher returns for similar risk taken to meet this objective in terms of investment.

They basically are in two broad catogeries.

Death benefit

In the unfortunate event of death of the life assured the child or the appointee in case the child still remains a minor is paid one full sum assured and further premium are waived. The insurance company pays the premium for the remaining period and at the end of the term the child receives another sum assured with full accrued bonus. In some plans the benefits are paid in installments at pre-notified times in the policy.

Survival benefit

In the event the life assured survives the term the beneficiary i.e. the child is paid the maturity benefit as per policy terms.

This plan is available as a conventional endowment type plan or Unit Linked Plan from most of the companies .

The design of the plan not only ensures that money is available to the child when required but also provides for funding earlier needs should the bread winning parent die premature.