Children Policy

Once upon a time “you were a naughty child“ and now It’s time your are doing a ‘Google Search” for Children Policy – You are grown up.

Do you remember if your parents had a Children Policy for you?

Most of you will answer NO (sometimes you have found your parents struggling for finances for your higher studies/ Marriage etc). However make sure when your child reads this, the answer should be “YES”.

Now Parents and grandparents want the best for the little loved ones in their lives—from keeping them healthy and happy to providing for their financial future. Children’s life insurance is a tool many families use to give their children a financial foundation that they can draw upon when they are older.
You may have a financial plan in place for your future but what about your child. Planning for your child future is an important decision which one should make in right time.

Simply put “Children Plans are the instruments which make sure your Child fulfils his/her future need”.

It’s a religious and systematic saving which you make for your Child Future needs. There are a variety of child insurance plans available in the market today, which can act as a savings tool to secure your child’s future.

There are two types of children insurance policies available.
-The child is the life assured: This is a plan where the Childs life is assured (however in some cases riders can be availed by paying extra premium). In this plan the premium will be lower and returns are not very attractive. Theses can be simple money back plans taken in the Childs name
-The earning parent or guardian is the life assured: This plan insures the life of the parent and adds some child specific advantages. Most of young parents chose this Life Insurance Policy.
To ensure your children lead happy and successful lives, it’s important to plan now so that they will have the financial support they need in the future.

So dear parent, next time a advisors asks “Are you interested in Children’s Policy ?” Don’t say No. Listen to the plan, but take your time to decide.

Insurance Policy with Money Back

What is Money Back Insurance Policy ?

As the name suggest you are getting something back from the insurers. Yes you are getting your hard earned money back and still you will be enjoying Insurance cover.

These are the policies which give you back a predefined amount of money at regular interval. The Money Back Insurance Policy has a 3 in 1 advantage, Its gives you a LIFE INSURANCE , LIQUIDITY and GUARANTEED SAVING. No doubts that why these policies rank high on the popularity chart.

In ordinary endowment insurance plans where the survival benefits are payable only at the end of the endowment period, money back policies provide for periodic payments of partial survival benefits during the term of the policy, as long as the policy holder is alive

What makes these products even more attractive is that in the event of death of the policyholder at any time during the policy term, the death benefit is the full sum assured without deducting any of the survival benefit amounts, which may have already been paid as money back components

Check Before U Buy

The most crucial aspect is reading the terms and conditions thoroughly and understanding each clause well.
Money back policy provides additional optional benefits such as critical illness benefits, additional term benefit, accidental death benefit and waiver of premium benefit. Check if your selected insured provide it or Not?
Check on the Minimum number of years for which the premium is to be paid to keep the policy alive, Surrender charges and tax benefit rules.

Advantages & Disadvantages of Term Life Insurance.

Advantages of Term Life Insurance.

• Term Insurance is the cheapest form of insurance.
• Provides a safety net for your family.
• Tax saving instrument.
• It pays a death benefit to the beneficiary you name.
• It will cover your final expenses and provide a lump sum for your dependents.
• It covers you for the full amount of life insurance you choose.
• It gradually increases annual premium as you get older. (Some Policies)
• It traditionally works well to meet temporary insurance needs.

Disadvantages of Term Life Insurance.

• No returns.
• Nothing is paid if u outlive the term.
• Only cover for a term.

Term Insurance

Some of us mix insurance with investment. Insurance is primarily for protection not for investments (however some products are designed to act as investment also). One of the purest and cheapest forms of insurance is Term Insurance. Term insurance give you a pure risk cover for a specified term.
If you have a family and dependents the Term Insurance is must for you. If you have taken a housing loan or any other big loan you can’t avoid having a Term Insurance. This policy is particularly useful to cover any outstanding. Since the policy has no financial investment value and most of your premium goes to pay for coverage, with only a small amount used to pay the insurance company's costs. If you are looking for the maximum amount of coverage for your Rupees , term life insurance will give you the most "bang for your buck".

Example : Say Mr Bond bought a term insurance policy for Rs 25 lakh (Rs 2.5 million). The term of the policy is for 20 years. If Mr Bond passes away during this period, his family will get Rs 25 lakh. The emotional void of Mr Bond can’t be fulfilled however this policy will take care of the financial insecurities. But, if survives for 20 years nothing will be paid, all premiums (money that you pay to the insurance company to maintain your policy) will be a loss.

Term insurance are of various kinds.

1. 1.Single premium Term Insurance.
2. 2.Regular premium Term Insurance.
3. 3.Premiums return Term Insurance.
4. 4.Decreasing Term Insurance.
5. 5.Loan Cover Term Insurance.

Also Read Advantages and disadvantages