What are the advantages and disadvantages of child insurance plans?
Child care plans are essentially saving plans specially designed to meet the increasing costs of a child’s needs like education. These plans insure the life of the parent, or the child and the benefits are available as lump sum payments when the child reaches a certain age. Also, in most policies if the parent dies or suffers a disability during the tenure of the policy, it will continue even if the annual premium is not paid. Moreover the sum insured for the parent is also paid. The disadvantage is that these plans are not self-sustaining, that is, if the premium is not paid for any reason other than the death or disability of the parent, it will lapse. Therefore, once you commit to a child care plan, you have to ensure that the premiums are paid on time. To avoid this you can consider the Ulip version of such plans.
