Armoring Your Child Against All Odds

Apart from being included as a nominee, life insurance cover is also important for the child.

- Ashfaque Ismail

There is no better joy than welcoming a new life into the world. As a parent, you want the best of everything for your little bundle of joy, but somehow, the thoughts of the unforeseen future always lurks at the back of the mind, and you would not want it to affect your child’s future at any cost. Therefore, apart from including your child as a nominee in your term plans, a life insurance cover for the child is also important.

According to financial planners, education and marriage for children tend to be the most common goals that parents have in mind. However, parents tend to buy child-related insurance plans to meet the financial requirements for predefined events, such as education and marriage costs. In the case of education cost, a parent may buy an insurance plan, which provides regular payments each year when the child goes to college for higher education.

Santosh Agarwal, Chief Business Officer, Life Insurance, Policybazaar, stated that most parents, looking to secure their child’s future prefer to invest in Unit-Linked Child Plans. Agarwal said, “No parent wants to think about the worst scenario that could occur to their children. But having a life insurance for your child can build a safety net for their future. Investing in a unit-linked child plan can be the best bet parents can have for their children.” Also, the future premium are waived off in case of the untimely demise of the policyholder within the policy period, she added.