What are Child Plans?-aegon-religare-child-insurance-plans

Plans which provide for the child’s future in the event of the parents’ death by taking care of the financial aspects are called a child plan. These plans are designed with the sole purpose of protecting the child’s future and can have either the parent or the child as the person whose life is insured under the plan. Some of the basic features of a child plan are: If the child’s life is covered under the plan, there might be a delay in providing the coverage in respect of a few starting years which is called deferment. After the deferment period is over, life cover will become active. If the child dies during the course of the deferment period, only the premiums which were paid are returned. The child becomes the owner of the policy after he crosses 18 years of age and attains maturity. This process is called Vesting If the parent is insured under the plan then in case of the parents death, all premiums payable will be waived by the company as per the inbuilt Premium Waiver clause while the plan will continue. The benefits will be paid as and when due.