Why do you need a child insurance plan?-bajaj-allianz-child-insurance-plans

We want to give the best of everything to our children whether in terms of clothes, lifestyle, co-curricular activities, school, education, etc. We provide for all our child’s requirements so that our child remains happy, even if it comes at a cost of sacrificing our happiness. But what will happen to our child if we are not around? Who will support our bundle of joy financially if we do not make provisions for them ourselves? Bajaj Allianz Child Insurance Quotes Investing for the child’s future takes a prime spot of importance in our financial portfolios but when it comes to choosing the right mix of investments; our planning might fail if we do not include the quintessential items in our list. A child insurance plan is that item, in the absence of which, planning for the bright future of our child is a waste. A child insurance plan helps us in a complete financial planning for our child. These plans need to be taken for a longer term so that when our child reaches the defining moments of his life, the plan will provide the much-needed finance. To illustrate my statement with a sentence, lets say that a money-back child plan is bought when the child id 5 years old with a term of 20 years. The plan promises 25% of the Sum Assured payable after 10 years and thereafter in the 15th a year. On maturity, 60% of the Sum Assured is paid with bonus. Case 1 – the policyholder, who is the parent, survives till maturity. For a Sum Assured of Rs.10 lakhs, he will get Rs.2.5 lakhs each after the 10thand the 15th year. At this time the child is aged 15 and 20 years respectively. The money received can be used to pay off the education fees which the child might face for pursuing higher education. Case 2 – the parent dies in the 12th year On death, 100% of the Sum Assured will be paid and the plan will continue. The money-back benefits will be paid again in the 15th year and the plan will mature when the child attains 25 years. Since, the plan continues, the child does not face any problem in providing for his higher education and the money-back benefit can be utilized for the same. Thus, by planning ahead, the childs parent ensured that his death would not affect the childs future since he invested in a child plan. The plan provided the necessary benefit on death and again on maturity which helped in funding the childs higher education. A child plan, therefore, is an important requirement of the hour and should be invested in.