Author: Sneha Banerjee

Child insurance plans are life insurance plans which are designed for creating a secured financial corpus for your child. The plan has an inbuilt premium waiver benefit wherein the future premiums stop if the parent dies during the policy tenure. Thus, the plan creates a secured corpus with or without the parent’s contribution and is an ideal financial tool for your child’s future.

Beneficial as the plan might be, there are a lot of myths attached to it. Most of us don’t understand the finer details of child plans and develop preconceived notions. These myths prevent you from buying a child plan. Here are some common and popular child plan myths vis-à-vis the realty –

• • Only the child is covered under the plan

    Many of you believe that child insurance plans cover only the child. This is wrong. There are two types of child insurance plans, one which cover the child and the other which cover the parent. Usually, you would find most child plans to cover the life of the parent. In case of the parent’s demise, the premium waiver rider is triggered and the plan continues till maturity. So, when buying a child plan, find out whether the plan covers the child or the parent.

• • The policy ends if the parent dies

    No it doesn’t. That is the beauty of a child insurance plan. The plan has the premium waiver rider inbuilt in its coverage features. If the parent predeceases the child, the rider becomes effective. If the parent was covered under the plan, the death benefit is paid immediately on death of the parent. Thereafter, the plan continues. Future premiums are paid by the insurance company till the time the plan matures. On maturity, the promised maturity benefit is paid again irrespective of the death benefit already paid. Thus, death of the parent doesn’t affect the continuity of the child plan. The plan runs for the chosen tenure by virtue of the premium waiver rider creating a secured fund for the child’s future.

• • The policy is suitable only for meeting the child’s education costs

    A child insurance plan doesn’t levy any restriction on the usage of the plan’s benefits. When the plan benefits are paid, they are not supposed to be only for the child’s future education. You can use the benefit as you please. It is only recommended and deemed by the insurance company that the plan benefits would be used for the child’s higher education. You are free to use it any other way you like.

• • The policy might not be sufficient to meet inflated costs in future

    This is a debate which many of you have against child insurance plans. Well, you are wrong. Child insurance plans are also offered as unit linked insurance plans (ULIPs). If you buy a child ULIP, the premiums you pay would be invested in the capital market. Thereafter, your investments would grow according to the growth in the capital market. As you know, capital market growths are inflation-adjusted. Therefore, child ULIPs provide a sufficient corpus for meeting inflated costs in the future.

• • The terms and conditions of the policy are difficult

    Only people with limited understanding of insurance believe in this myth. Since some concepts of life insurance plans are technical, many believe that the terms and conditions of a child plan are also difficult to understand. They can’t be more wrong. Child plans are simple. You just have to understand who is covered under the plan (parent or child), the benefits promised, the tenure and the premium you have to pay. Moreover, you must be a parent to become eligible to buy the plan. The rest is easy. The plan would continue for the chosen tenure promising a maturity benefit even if the death benefit is paid.

• The policy locks in the investment for a long period

  Insurance plans come with a long-term perspective and so many of you believe in this myth. But this is a not entirely true. If you buy a traditional child plan, you get the option of availing policy loans after the first two or three years. This loan facility gives you access to your funds when required. In case of child ULIPs, partial withdrawals are available. You can withdraw from your fund value, partially, after the first five policy years. Thus, child plans allow liquidity. Even if your investments are locked for a long period, the plan promises a corpus for your child’s future. Isn’t creating a secured corpus for your child a long-term effort?

Here are more life insurance myths for you to bust

If you believe in any of these myths, it’s time to see the reality. Child plans are the only tools which promise a secured future of your child even in case of your early death. So, understand the benefits of a child plan and buy one if you are parent.

Read more about Why are child insurance plans ideal for your child.

Read more about Ask these things to yourself if you are considering of not buying life insurance.

Visit our site https://turtlemint-stage.dreamhosters.com/life-insurance to find the right child insurance plan.

Women have, time and again, proven to be equal to their male counterparts. Today, more and more women have joined the work force and have become independent. Even in case of life insurance, women are realising the importance of having a cover on their lives. Whether it is purely for protection needs or investment needs, life insurance policies for women are becoming popular. The Life Insurance Corporation of India (LIC), one of the pioneering insurance companies in the market, offers attractive insurance solutions for women as well. So, for all you women out there looking for insurance, here are some of the best plans offered by LIC for your needs –

• • LIC’s Aadhaar Shila

    This is an endowment plan designed and offered specifically for women. Females having an Aadhar Card can buy the plan. The features of the plan are as follows –

    • Loyalty Additions are added after the completion of the first five policy years
    • At least 110% of the sum assured is paid in case of death
    • Optional Accident Benefit Rider is available with the plan. The rider pays an additional sum assured in case of accidental death during the policy tenure
    • Premium discounts are available if the chosen sum assured is Rs.2 lakhs and above.

    Read more about Types of life insurance plans

• • LIC’s Cancer Cover Plan

    Given the high incidence of cancer, women are advised to invest in a cancer insurance plan. LIC’s cancer insurance plan offers the following benefits –

    • Two coverage levels are available – level sum insured and increasing sum insured
    • The sum insured increases by 10% of the basic sum insured in the first five years of the policy or till the first diagnosis of cancer
    • Both early stage and advanced stage cancers are covered
    • In early stage cancer, 25% of sum insured is paid. Future premiums are then waived while the plan continues
    • In major stage cancer, the full sum insured is paid. All future premiums are waived. 1% of the sum insured is, thereafter, paid every month for 10 years whether the insured is alive or not

• • LIC’s e-term plan

    This is a pure term insurance plan which you can buy directly from the company’s website. The features include –

    • It’s a pure term plan where a death benefit is paid in case of death during the plan tenure.
    • Sum assured up to Rs.50 lakhs can be availed under the plan.
    • Coverage is available for up to 75 years.

    Read more about Why should women buy term life insurance?

• • LIC’s New Children’s Monck Plan

    If you want to create a fund for your children which pays regular returns, this money back plan is suitable for you. You can buy the plan for your child. The plan features are as follows –

    • Money back benefits are paid when the child attains 18 years, 20 years and 22 years.
    • 20% of the sum assured is paid as money back benefit
    • The plan attracts bonus additions. Simple reversionary bonus and a final additional bonus are paid under the plan
    • Two optional benefits are available. Under the first benefit, the survival benefits can be postponed. Upon postponement, a higher survival benefit is paid. Another optional benefit is the premium waiver rider. Under this rider, if the parent dies, future premiums are waived off but the plan continues

    Read more about Term life or money back plan which one to buy?

• LIC’s New Endowment Plus

  For investment savvy women looking for market-linked plans, this plan is the best. It is a unit linked plan which gives you the facility of enjoying market-linked returns along with insurance protection. Notable features include the following –

  • Higher of the sum assured or the fund value is paid as death benefit
  • Accidental death benefit rider is available as an optional cover
  • You can buy the plan with as little as Rs.20, 000 annual premium
  • Four funds are available for investment
  • Maturity benefit can be taken in instalments over 5 years
  • Flexible benefits like switching, partial withdrawals, etc. are allowed

These are some of the best LIC plans for women in 2018. You can choose any plan you need based on your requirements. Go for a cancer care plan or an investment oriented one, but do insure your life. You are, after all, valuable!

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A child is a joy for its parents. You, as a parent, try to ensure that your child receives the best nutrition, healthcare and education. You even create a financial plan for your child’s future so that your child can choose whatever education he/she likes without having to worry about necessary funds. What if your financial plans for your child take a backseat if you die prematurely? Would the funds, you thought about, be available to your child when he/she grows up and seeks higher education?

They might not and this is where a child insurance plan comes into the picture. The plan, with its unique coverage benefits, provides a secured saving for your child’s future. Do you know what these plans are?

What are child plans?

Child insurance plans are savings oriented life insurance plans taken on the life of a parent or a child. The plan has an inbuilt premium waiver benefit. If the parent, who is the policyholder, dies during the term of the plan, the plan does not end. Future premiums are paid by the insurance company and the plan continues till the term selected. In case of death of the parent, a death benefit is paid (if the parent is the insured). On maturity, whether the death benefit has been paid or not, the promised maturity benefit is paid.

Types of child plans

There are two types of child insurance plans – traditional and ULIPs. While traditional plans come as endowment or money back plans with guaranteed benefits, unit linked plans (ULIPs) provide market-linked returns.

Why are child plans ideal?

The only feature which makes child insurance plans ideal for your child’s future financial security is the premium waiver benefit. This benefit makes the plan uniquely suitable to creating funds even in the absence of the parent. This is what sets child insurance plans apart from other popular investment tools like Fixed Deposits (FDs) and mutual funds. Let’s understand –

So, while FDs and mutual funds stopped creating wealth at the death of the parent, the child plan continued. It stopped only on the promised maturity date and paid the promised maturity benefit. Thus, the child plan guarantees wealth creation even in the absence of the parent and is an ideal investment avenue compared to FDs and mutual funds.

You can choose traditional child plans or unit linked ones based on your requirements. Traditional plans, however, provide lower inflation-adjusted returns. ULIPs are better since their returns are higher and depend on the market movement. Therefore, such returns are inflation proof.

The verdict –

The verdict is clear. Child plans are an ideal investment solution if you want to create exclusive funds for your child’s future. They also have a tax advantage which is missing in case of FDs and mutual funds. The premiums you pay and the benefits you receive under the child plan are both tax-free.

Read on to Know about tax benefits of life insurance policy

Thus, child plans provide you dual advantages. They not only create assured funds for your child, they also help in lowering your tax liability. So, if you have a child and want to create funds for his/her future opt for child plans.

Read on to know The reasons why you need life insurance policy

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Women empowerment has become the all new rage in today’s age when women are becoming increasingly independent. The importance of women is being felt everywhere. Women have become independent and it is no surprise that they also need an insurance plan of their own. However, many of you don’t give due importance to a term insurance plan for women. You might feel that women don’t need term insurance. You are wrong. Women also need a term insurance plan. If you don’t believe me here are some reasons why women should invest in a term insurance plan of their own –

• Financial security for the family

Gone are the days when only men were the sole breadwinners of the family. Nowadays women can also be the sole breadwinners of their family. For instance, unmarried women can be the bread-winners for their dependent parents. Similarly, single mothers are the chief wage-earners of their family. In such cases, in case of the unfortunate demise of the female breadwinner causes a heavy financial loss for the dependent family. A term insurance plan is needed in these cases to provide financial assistance to the bereaved family. The plan pays a lump sum benefit on death of the breadwinner ensuring financial security for the family.

• Supplementing the husband’s insurance cover

If women also invest in a term insurance plan for themselves, they can supplement their husband’s insurance cover and create a larger financial corpus. Just like working women supplement their household’s income, women having a term insurance plan supplement their husband’s insurance cover. The enhanced coverage can, therefore, provide a better financial security for the family. Since inflation is increasing day by day, an additional term plan would ensure a better financial cushion for the family.

• For the children’s financial security

Every parent wishes to create a secured future for their children. While husbands do all the necessary financial planning for their child’s future, women too can contribute to it. By buying a term plan on their lives they can create an additional financial corpus for their children in case of their premature death.

All these reasons highlight the importance of a term insurance plan for women. Whether you are a husband or a father, ensure that the women in your family also have a term insurance plan. If you are a woman yourself take the next step in empowering yourself. Buy a term insurance plan and secure your family. However, before you buy a plan you should look out for the following factors –

• The sum assured

Your plan should have an optimal sum assured based on your financial goals. Term plans have low premiums which allow you to afford a higher coverage. So, don’t skimp on the coverage amount. Expenses are on the rise and if you want your term plan to create financial security, an optimal sum assured is required.

• Premium rate

Check the premium of the plan. While you might be enthusiastic about having a higher coverage, ensure that the associated premiums are affordable. Compare the different term plans available in the market before you settle on one plan. Comparing would let you buy a plan which has the best premium rate and also a comprehensive scope of coverage

Read more about understanding life insurance terms.

• The riders

Riders are additional coverage features which are available at an additional premium. The additional premium required is minimal while the coverage is quite comprehensive. Some popular riders which you can consider include the following –

• Accidental death benefit rider – the rider pays an additional sum assured in case of accidental death
• Critical illness rider – the rider covers major critical illnesses and pays a lump sum benefit if you are diagnosed with any of the covered illness
• Premium waiver rider – this rider waives future premiums if you are become disabled due to an accidental injury
• Terminal illness rider – this rider pays an additional sum assured and also waives future premiums in case you are diagnosed with a terminal illness.

So, choose the necessary riders depending on your requirement for a more enhanced coverage under the plan.

(Here’s why riders are necessary)

Women’s contribution to the society cannot be ignored. Their lives also have a financial value which needs to be protected with a term insurance plan. So, you should ensure that you yourself and the women in your family understand their importance and insure their lives under a term insurance.

Read more about why you should buy life insurance plan if you are thinking of not buying one.

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