Are you a parent?
If you are, you know the joy that your child brings. After becoming a parent, your child usually becomes the centre of your universe. You may want to give everything to your kid – quality education, nutrition, grooming, upbringing and more. But these things may cost money.
As such, parents may start saving up for their children so that they can fulfil their child’s needs. But what if an untimely demise puts a stop to their financial plan? Life is uncertain, and an untimely demise might hamper your child’s financial security. That is where child insurance plans may come into picture, which can ensure that your child gets the financial security that you want for them.
Child plans – The Concept
Child plans are savings-oriented life insurance plans that help parents create a corpus for their child’s future. These plans are different from other plans in the sense some child insurance plans come with a premium waiver benefit. This benefit waives the premium on the parent’s untimely demise but does not affect the continuity of the plan. The plan continues till the chosen tenure and gives a maturity benefit. The child can use this benefit to fulfil its financial needs even in the parent’s absence.
When to Consider Buying A Child Insurance Plan?
It may be preferred to buy a child insurance plan as early as possible, i.e., when your child is young. When you buy early, you can create a good corpus over a long-term horizon. You can save affordably, and the compounding factor may enhance the corpus. This would help you create a sizeable corpus for your child’s financial needs.
How to Buy a Child Insurance Plan?
There are two ways of buying a child plan – online and offline. The online mode involves buying the policy through the insurer’s website. On the other hand, the offline mode involves visiting the insurance company’s branch office or locating the company’s representative to buy the policy.
Some people may prefer the online mode of buying the child plan, while some may find the offline mode more convenient. Buying offline involves connecting with an authorised agent / representative of the company.
Now let’s see the steps involved in buying the plan online.
How to Buy a Child Insurance Plan Online?
The process of buying a child plan online differs across different companies. However, the basic steps involved in an online purchase include the following –
- Visit the insurer’s website and check the child insurance plans available
- Understand the benefits of the available plans as well as their terms and conditions
- Choose a plan which matches your financial needs
- Choose the coverage details based on your requirements and investment horizon
- Calculate the premium for the plan using the online calculator. Alternatively, you can use child insurance plan calculators to calculate the expected corpus needed for your child’s financial needs Then you can use the plan-specific calculator to find out the premium required to create the calculated corpus
- Once you have shortlisted the plan details and are done with the calculations, fill in the online proposal form
- Upload the relevant documents needed to buy the policy and submit the online proposal form
- Pay the premium online
The insurance company would underwrite your proposal and issue the coverage if everything is found to be satisfactory. The plan would be issued, and the soft copy of the policy document would be mailed to your registered email ID. You will get the physical copy of the document through mail at your registered address.
Documents Needed To Buy a Child Insurance Plan
Whether you buy the child plan online or offline, you would have to submit some documents for the insurer’s verification and underwriting process. These documents include the following –
- Identity proof like your Aadhaar card, passport, etc.
- Age proof like your birth certificate, passport, Aadhaar card, etc.
- Address proof like Aadhaar card, property documents, utility bills, etc.
- Passport Size Photograph
- Income proof like your salary slip, form 16, Income tax returns, etc.
- Other documents like PAN Card or Form 60 also are mandatory
Things to Remember When Buying Child Insurance Plans Online
While the online mode may be a quick way to buy a child plan, there are some things that you should keep in mind. These are as follows –
- If you are confused about any aspect of the policy, reach out to the company’s representatives for a better understanding. Buy the plan only after a complete understanding of its benefits and terms
- Understand the claim process too
- When filling up the online proposal form, be truthful. Don’t hide any information, as it might result in a claim rejection.
A child insurance plan can be a suitable insurance plan to consider, for your child’s financial future.