Q-1 Who can buy children’s plans? Ans– Whoever has children dependent upon them can buy child plans. They can be parents, grandparents or legally assigned guardians of the child. Q-2 When should I buy a child plan? ANS- Ideal time to buy a child plan is when the child is still young and not reached teens. This allows enough time to build the corpus you have planned for, with considerably lower premiums. If the child is already in teens, you hardly get 3 to 5 years to build the same corpus so the premiums are quite high. Q-3 What happens if the proposer passes away? Ans- Most child plans come with the payer benefit or the waiver of premium benefit. So, if the proposer dies, the insurance company takes care of all the future premiums of the child’s policy. The child is also entitled to a sum assured along with it. Each insurance company has this benefit in exact or similar form depending on the company policy. Generally, payer benefit is inbuilt into the child plan but if not, it can be taken as a rider with nominal premium. Q-4 What is a traditional child insurance policy? Ans-The traditional child insurance policy has guaranteed returns. It has a fixed maturity amount that is given to the insured at a specific age. It can be of two types: i. Child endowment policy: In this case, the child receives a fixed maturity amount in a lump sum at the maturity of the plan. ii. Child money back policy: Here, the child receives fixed portions of the sum assured at predetermined regular intervals. Finally, on the policy maturity date, the child receives balance maturity amount. Q-5 why should I buy child insurance plan? Ans– a-It provides financial security for your child future b-It acts as a financial tool during the turning point in your child’s life such as future and for higher education. Q-6 what are the main reason which we keep in mind while investing in child plans? Ans– 1 -You survive the policy period – You pay premiums, the plan pays a fixed maturity at a fixed age of your child in tranches or lump sum as you decide. Fixed maturity at fixed age is very crucial as your child will need funds for higher education at a specific time period. 2- You do not survive the Policy period – Full Insurance cover is immediately paid to the family, future premiums are waived off and the plan pays a fixed maturity at a fixed age of your child in tranches or lump sum as you decide. Q-7 What is the tax benefit if  I choose child plans? Ans – The premium paid for a child insurance plans is eligible for tax deduction under SECTION 80C, while any income from the plan is tax-free under SECTION 80D. Q-8 Is my child live is covered by a child insurance plan? ANS– Typically, parents are covered by a child insurance plan and the child is the beneficiary in case of an unforeseen event or untimely death of the parents.  Buying a child insurance plan helps meet the increasing educational and other needs of your child. A child plan acts as a financial support when your child accomplishes various life stages such as primary and higher education, starting business or even marriage Q-9 In case of my sudden death does my child have to pay the premium? Ans– In the event of your sudden death, your insurer will pay a lump sum amount to the nominee that can be utilized for meeting your child ‘s future requirements Typically this policy does not get discontinued in the event of parent‘s sudden death. Most insurers offer ‘wavier of premium ‘ rider at the time of buying the policy and your child won’t be required to pay any future premium in your absence. Instead, your insurer would take care of future premiums on behalf of your child. Q-10  “Payments are made only if my child goes for higher education and if marriage his/her happens”. Is this correct? Ans- no this is not correct, If your child does not wish to pursue further studies or intend to not get married sooner, your child can still make a claim.The objective of a child plan is to secure your child’s future by making funds available at the due date.Therefore, irrespective of the goal the money was tied to, the claim can still be made when the term of the policy ends. Q-11  CAN I AVAIL / UTILISE THE PAYOUT ONLY AT THE END OF THE PLAN? Ans– You do not have to wait until the end of the plan to avail the payout. In fact, Child ULIPs allow withdrawing a certain percentage of the fund value after completion of five years from the date of commencement. In the event of your sudden death, your insurer will discontinue the ULIP and pay the funds to your child.   Q-12 Does my child insurance plan serves only to insure? Ans-Your child insurance plan also serves as an investment tool. By investing in a child plan at an early age, you get optimal returns that may come handy as and when the need arises. Opting for the unit-linked insurance plan would help the money grow over a period of time as your child would not require any immediate funds.