Child Plans: An Effective Way to Start Planning For Your Child`s

Child Plans: An Effective Way to Start Planning For Your Child's Future

Last Updated: Fri, Sep 28, 2012 09:33 hrs
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You always thought your daughter would follow in your footsteps and join a top law college in the country. However, one day she comes and tells you she wants to go to Madrid and study fashion. Suddenly you find yourself staring at an uncertain future - you do not know where to arrange the funds from. Desperate, you look at all the options available, but the time for admission beats you and your daughter's dreams of attending college in Milan are shattered. Sounds depressing to you, does it? Well, this may just be a hypothetic way to look at a situation 15 years down the line, but as a parent you must secure your child's future and make all the necessary investments so that she is never left without an opportunity to follow her dreams. When planning for a Child Plan, one must take into consideration the Education Inflation as well, which is at least 15% or so and way above the regular inflation figures.

myinsuranceclub.comThere are quite a few good Child Insurance Plans in the industry today that allow you to do just this. Read on to know all about the Child Plans, what they have on offer and how exactly they can help you and your child.

Definition of a Child Plan insurance policy

As per the insurance dictionary, a Child Plan is described as an endowment plan where the parent is the policyholder and the child is the beneficiary.

Importance and usefulness of a Child Plan

  • A Child Plan is of utmost importance in today's world where expenses are rising by the minute. While parents usually make funds and save for their children's future, it is not always enough due to the simple logic that the expenses of the future can never be calculated effectively. An MBBS degree from a state-run medical college amounted to just about Rs. 2 lacs 20 years ago, but now the fees for the same degree in the private colleges can be anywhere between Rs 45-70 lacs. And we can only guess how much it will be in another 20 year's time! A Child Plan helps you in accumulating the funds, not just for the child's education, but also for other important events including marriage.

  • Apart from this, the Child Plans also ensure that your child is not left unprotected if you happen to die. A Child Plan pays for the child's education and cost of living if the parent(s), earning or both, happen to die within the tenure of the policy. The premium is waived off but the funds continue to flow in. This is, unquestionably, one of the best features of a Child Plan.

  • A Child Plan also allows you to make provisions for regular inflow of funds at every step of the child's life - when he begins school, when he graduates from school, when he gets married, when he starts his own business, etc.

  • Some Child Plans have a Triple Benefit scheme, i.e. if you die you family gets the Sum Assured as Immediate Death Benefit, the future premiums are paid by the Insurance Company in your behalf and the policy continues till the end so as to provide for the Maturity Benefit as you had desired for your child for her education or marriage purposes. Hence this type of plan ensures that your child's future is definitely secured whether you are physically there to take or not by some misfortune!

  • You can purchase a Child Plan as soon as your child is 3 months old. It is advisable to purchase the plan as early as possible as this way you can save more and that too conveniently. A Child Plan is a secured investment with almost no risk involved and you are assured to get your money back. So cement the blocks to make your child's future strong and safe. This is perhaps is the best gift you can give your child in life.


    The author is the CEO of, an online insurance price & features comparison portal

    For more articles by Deepak Yohannan, please visit

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