Childrens Day Special - planning to buy an insurance plan for your child? See these 10 tips

The Coronavirus 19 has been the biggest disruptor in the lives of many of us impacting directly or indirectly not only our health but also our incomes and finances. Any unforeseen happening may not only have an impact on individuals but also his family including children. It is therefore important to shield children from the impact of these mis-happenings through insurances. Know why insurance is important for your child and what you must do while buying one!  

Why Child Insurance Plans are necessary? 

Many could find insurance plans related to children higher on cost but they are essential in case of unforeseen events like the death or accident of the guardian. The insurances company will continue paying the benefits to the beneficiary and even premiums (on untimely death or accident) in many cases.  

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Here are some useful tips:  

1) Child insurance plans are tailor-made for specific requirements of your child and could be costlier than other types of plans.               

2) There are unit linked child insurance schemes available which could provide financial assistance for existing and future needs to your children in case of emergencies. Opt for plans that give you flexibility of investment and offer inbuilt income and premium payment waiver benefits in case of death or accident of policy holder. 

3) There should be provisions of top-ups should the requirements change or grow. The plans must have the facility of increasing insurance coverage. 

4) One must also look at the benefits a particular plan could provide after the maturity of the policy.  

5) The said policies should also facility of partial withdrawals after certain period of time. 

6) While buying a policy for your child, you must also look at the tax benefits that come along with a policy. This would ensure some saving for the policy holder. 

7) If you are choosing a non-linked plan, choose plans that offer moneyback or endowment benefits. This plan must also have premium waiver options along with tax benefits. 

8) In case, if an insurance plan ticks all the right boxes but appear expensive, try selecting a plan that offers premium payment flexibility. It should allow, monthly, quarterly, halfyearly and annual payment options.

9) You must also look at the riders while opting a particular plan. Enquire about them and choose wisely according to your needs. Certain benefits may incur further cost.  

10) Compare plans before buying one.  

Some of the most popular plans include: 

- Aegon Life Risisng Star Insurance Plan 
- Bajaj Allianz Young Assure 
- Bharti Axa Life Child Advantage Plan 
- HDFC SL YoungStar Super Premium 
- Edelweiss Tokio Life Edu Save Plan 
- Birla Sun Life Insurance Vision Star Plus 
- ICICI Pru Smart Kid Assure Plan 
Aviva Young Scholar Advantage Plan 
- Kotak Head Start Child Assure Plan  
- Max Life Shiksha Life Super 

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)