Children's Life Insurance Policies

In the event of such an occurrence, the child receives the sum assured in the policy plus bonus/participating profit/guaranteed addition, if any, or the value of the investments, at a pre-determined age. Generally, children's policies are calculated to mature at specific, important events in the child's life, such as attaining college-going age or the wedding.

This money is receivable irrespective of whether the proposer i.e. the parent/guardian/grandparent survives the term of the policy.

In case of a money back policy, the child receives fixed portions of the sum assured at regular intervals. On maturity, the child receives the balance sum assured, if any, plus the bonus/participating profit/guaranteed addition, if any, or the value of investments, whichever is higher.

In the event of death of the proposer, the policy continues and usually no further premiums need to be paid. On maturity i.e. at a pre-determined age, the policy continues and the child receives the sum assured plus bonus/participating profit/guaranteed addition, if any, or the value of the investment, depending on the type of policy purchased.

The premium for children's policies usually is based on the age of the proposer and the child.

However, there are other ways to provide for such eventualities. If one chooses to impose self-discipline and invest regularly, other saving/investment avenues, such as mutual funds, offer higher returns. Click here to learn why your insurance plan is not a good investment avenue as well.

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