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Home / Life / Types of plans

Children's Policy

What is a Children's Policy?
How is it beneficial to me?
Who should buy this plan? 

What is a Children's Policy?

Children's insurance includes policies through which parents or legal guardians can provide for life insurance for their child from birth. The risk cover commences from the child attaining the age of 12 / 17 / 18 / 21 (known as the Date of Risk), and will vest itself on the child upon his or her attaining majority on completion of age 21, if the case demands so.

Until the child attains majority, the parents are the owners of the policy and have to pay the premium periodically. It is important that these policies are considered only after the insurance portfolios of the parents have been completed. The family’s insurance budget should primarily buy as much life insurance as possible on the lives of the breadwinner and should not be frittered away on the children’s lives as their insurance is useless in the event of any premature death of the breadwinner. In fact, those lives should be insured that have maximum economic emphasis. Quite often, these policies lapse if and when the premium paying breadwinner of the family die before the vesting age. After all, the child may not be in a position to continue paying the premiums.

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