It is important to know about the child insurance policies. If you are parent for one or more children, you must seriously consider taking policy for them. This will help you to spend money for their education, marriage, etc. There are numerous policies available for the children. You should e very careful while selecting the policy. In this article I will explain few points about the child policy. In my future article I will elaborate more on choosing the right policy for your child. If you have any doubts please post it in the comments section. Subscribe to our future articles here.
Child Insurance Policy
- In child insurance plans, parents will be the policy holder and beneficiary will be the children. Most of the policies ranging between 10 years to 25 years.
- There are two types of policies in the child insurance. One is endowment and another one is ULIP. Endowment policy is less risk and less income. But, in the ULIP type of policy there is more risk and more income.
- In the child insurance policies, administration charges and broker commission will be higher than the other policies.
- There is tax exemption for the child insurance policy under section 80c of the Income Tax Act 1961. Also there is no tax for the accrued bonus or any other money received from the insurance company.
- First three years you have to pay the premium before the due date. After that there is paid up value in your policy, so you can pay the premium with few weeks delay.
- If there is death of child, insurer will pay the amount seeing the age of the child. It varies from the each insurer.
I hope this article is useful for the parents who are willing to take the child insurance policy. In my future articles I will be writing about the each policy in detail. Thank you for reading this article. If you have any doubts please post it in the comments section.
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