Child Plan – Is It Really Worth Buying?

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As soon as a child is born to us or to a friend or to a family member or to a neighbour, we always suggest starting planning for the child’s future. Also, it is wise to plan because you never know what lays in the future – how much expense or what education; many such questions always hound a parent!! Of course, no parents would want to see their child suffer because of poor planning!!

The very first that we think or anyone would suggest us is buying a child plan. Why?? Only and only because the family need not pay any premium and the child will get all the benefits of the plan in either case!!

Ask yourself is it just the premium paying liability that you cared for while buying a child plan? Or monetary support that you wish to provide when the parent is no more??

Let us take an example. A 33-year-old becomes a father, who is currently the only bread-earner of the family. He buys a child plan from any life insurance company. He is paying Rs. 50,000 a year, to be paid till the child is 15 years of age. He gets a life cover of Rs. 7,50,000. Maturity benefit is Rs. 2,50,000 a year to be paid at the age 17, 18, 19, 20 and 21. So, in total the father pays Rs. 7,50,000 in 15 years and gets back a total of Rs. 12,50,000, in 5 years time.

Now, if the father dies in 10 years, then the premium for the next 5 years is waived off, the Sum Assured is payable immediately and again, all the benefits are payable, as mentioned above. So in total, as against Rs. 5,00,000 premium, the child gets Rs. 20 lakh in some intervals.

Seems lucrative!!

But consider, the school fee as of now is Rs. 1.50 lakh a year, would not be the same after 10 years. Considering 8% inflation, the school fee will be approx. Rs. 3.23 lakh. So, just imagine the child get just Rs. 2.50 lakh. So, the child’s parent has to shell out additional Rs. 73,000 on their own.

Think about it!! Is it really worth??!!

Would you like to know how to get the better plan than this, with exactly the same amount you want to invest every year??

Write to us about what you think about this and let us know your requirement and we will help you find a good solution in this regards!!

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1 Comments
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    Reply
    November 3, 2024 at 11:37 pm
    Posted by Tawnya Helton

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