Children are always the important part of our life and insurance is one of the important things that we must do to ensure the best for our kids. Consumers should be very selective in choosing the appropriate insurance plan for their children. Insurance Industry is in full boom and we can find a wide market with private players and LIC. People started investing in these plans either by self awareness or by the glam of insurance advertisements.,We can find a boom in the sales of pension plans in the last few years and the next target is on the child plans. Most insurance companies including the Life Insurance Corporation is now mainly targeting on Child Insurance Plan. According to the consumer survey conducted by a major insurance company on the saving habits of young parents in India, 67 percent of the 2,250 people surveyed across ten cities said that planning for a child’s future takes priority over retirement. Most of the parents are concerned about the school and college education, reflecting the concern over the rising cost of education. The modern day parents want to invest bigger amounts to fulfill the dreams of their children.,Most of the consumers are concerned about the security of the insurance plans, they go for plans where the maturity amount is guaranteed. In case of the death of a parent, the sum assured is immediately paid to the child. Moreover, the insurance company pays the balance premium amount in the event of disability or critical illness. Most of them provide a regular income when the child is minor. In case of the death of both parents, the money is given to the one the parents have nominated or to the nearest relative.,It is better to start the child planning early, as year goes on, consumers have to pay extra premium to achieve the same corpus. Most of the companies have come up with new insurance plans. The child plan from LIC (Jeevan Kishore) offers bonus from day one. The child gets the benefits automatically at the age of 18. Those parents who want a lump sum amount at a particular age can choose this plan. The amount can be used for any purpose of the child, marriage or education.,Another plan from Max New York Life, Shiksha Plus, which is a unit linked plan. Here the fund value on maturity can be used for the higher education of the child. This is more reliable as the company offers 10 percent of the initial sum assured to the beneficiary in case of the death of the parents. They are paying the amount in a yearly basis. The company will pay all future premiums until the policy get matured. If the child has any particular talents, the company provides partial withdrawal of the amount to enhance the special talents of the child.,ICICI Prudential has its Smart Kid Plan, the sum assured will be paid out and the future premiums will be paid by the company in the event of death of the parent. Consumers can get 100 percent allocation to funds from the sixth policy year onwards. You can also withdraw money at key educational milestones like Xth standard, XIIth standard, graduation or post graduation. The Young Star Supreme Suvidha from HDFC Standard Life offers additional amount to the fund value at maturity in the event of the death of the parent. They have a low Fund Management Charge (FMC) of only 1.25% per annum (depending on the fund’s value). The payment can be made half yearly or yearly. They also offer tax benefits under section 80C and 10(10D) of the Income Tax Act, 1961.,Many insurance companies have come up with tools that help prospective consumers to reach to a conclusion on the amount of the money they will need once the policy matures. All insurance companies have tuned their policies to meet the needs of the consumers. Over the last five years the child plans have received a very good response from buyers. They are growing as a product and while buying such products you should be careful. Beware of charges and unauthorized agents, ask for the policy transparency, as you are going to have a long term relationship with the insurance company. Choose a good plan so that you can fulfill your child’s dreams and aspirations.

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