Given the rising expenses and the high cost of education, saving for children is becoming increasingly important. Child plans offered by life insurance companies are one way of doing this.
Under revised guidelines, insurers are considering launching products to meet various needs in this regard - child care, education and marriage expenses.
In the case of a child plan, the parent contributing the premium is the insured life, while the child is the beneficiary.
The inbuilt benefit that waives all future premia, along with a fixed sum assured to the beneficiary in case of the demise of the parent, is the biggest attraction towards these plans.
"Child plans ensure the investment is protected from any sudden demise of the life insured," says Tarun Chugh, managing director and chief executive, PNB MetLife India.
Text: Priya Nair, Business Standard
Image courtesy: Reuters