Life Insurance (1)
Child Insurance Plans may be both unit linked or traditional plans. Child Plans are typically designed to provide both protection (on the life of the parent) and savings elements to assure that the child’s future requirements may be provided for. These plans are usually for a period of 5-20 years, and often used by parents to accumulate an investment / saving for a future need, for example, the child’s education or marriage. The protection element of the plan provides the assurance that the funds (sum assured) will be available even in the event of the parent’s death.
Many child plans will have inbuilt or attached Riders that provide for additional benefits. For example a Waiver of Premium Rider.