Decoding the best child plan with Max Life Insurance
Rahil had bought a child plan from Max Life Insurance when his daughter, Ayesha was just two years old. He set up the policy in such a way, that the payouts would happen at regular intervals. The first payout was scheduled for when Ayesha would be three years old and needed to be admitted to the school. The next one was 15 years later when she would need college admission. The final one was scheduled for when she would turn 25 years old, and she could utilize the money either to set up a business or to get married. Rahil made a good move as unfortunately, when Ayesha was 10 years old, Rahil lost his life in a road accident. The child plan however continued and took care of Ayesha’s education and well being.
What is a child plan and how does it work?
A child plan is a kind of life insurance policy where the child is the nominee. This means that the life of the parent is insured in the interest of the child. When you buy a child plan, it gives you two advantages:
- Life cover
- Periodic payouts
The first component is easy to understand. If you suddenly die during the policy period, your nominee gets a lump sum amount of money to deal with the immediate requirements. This is similar to a regular life insurance policy. However, unlike a regular plan, a child plan doesn’t end when the policyholder dies. The premiums are waived off and the insurer continues to keep the fund afloat and make the periodic payouts as promised in the bond. This helps the child to continue with his or her education and lifestyle needs even in the absence of an earning parent.
What are the best child plans in India?
There are some very good child plans available in India today. Among them is the Max Life Shiksha Plus Super plan. Here, you get the following benefits:
- Death benefit.
- Income replacement where 10% of the sum assured is paid every year to the nominee for the entire policy period.
- It is a ULIP so a part of the money stays safely invested and the other part grows in the financial markets.
- Minimum entry age is 0 month and maximum entry age is 18 years. This is a wide range and no matter how old your minor son or daughter is, you can enroll him or her in the plan.
- The premium paid is tax deductible (under section 80C) and the claim amount is also tax-free under section 10 (10D) of the Indian Income Tax Act.
The bottom line
With the costs of education rising and the health risks increasing too, it is vital for every parent to secure their child’s future. You can do so with the Max Life Insurance child plans. These plans provide the best insurance cum investment options for your child’s benefit. So what are you waiting for? Speak to your insurance agent today or go online and buy a good child plan right away.
