The Lazy Man’s Guide To child plans

The Lazy Man's Guide To child plans

Child plans are easy to get and work with. A child education plan is a plan that will support the family with the future needs and requirements of the child in the case of an unfortunate death of the parents. The child is not the one who is insured but it is the parent or the guardian that is insured on whom the child is dependent (minor child). The plan is designed in such a way that it ensures the financial support of the child after the demise of the parent(s). The underwriting is done on the life of the guardian or the parent of the child and it later transfers the child education plan to the child after they attain majority that is 18 years of age. Children become extremely vulnerable without their parents. Child education plans come in as a protector to the child with all the money that the plan helped the parents to save for the future of the child in case anything happens to them.

Starting the child education plan early will help you save more money on it. Starting early will allow you to save more corpuses and invest little money. For the future education and career of your child, you must start investing in the child plan soon after your child comes into this unstable world. The inflation rate will increase the cost of education in a couple of years when your child will be of age to start with their higher education. With the really high prices now, you can only imagine how much they will increase in the year to come. So, if you want a huge sum of money to be saved for your child’s future, then you must start investing when your child id young. You can get the child plan kick – started as soon as they are born, the minimum entry age of the child, in most insurance company’s regulations, is 0 years. The earlier you start, the more you will be able to accumulate for the secure future of your child. A significant corpus will be collected throughout the period of time allowing your child an easy future.

  • As the corpus collected through a child education plan is only for the utilization in the future, not much has to be done in between the start and the maturity of the child plan. So, a lazy person would anyway choose to only touch the corpus after maturity, right!


  • If you are getting too worked up on how much tenure to settle on or how much sum assured to set for the child plan, then you just need to do a simple thing, just figure out and calculate how much your child would require in their different stages of life. This will help you determine the amount that they will need in their education, career set up, etc. so you can settle on a term and sum assured easily.


  • As you are aware about the fact that the child education plan insurance policy is under the name of the parent or the guardian of the child, there is a process which will transfer the insurance plan from the parent(s) to their child when they come of age. This process is called vesting. Now, you should choose a plan that offers this system of insurance policy transfer so that it would protect your child directly and easily and you do not have to keep a record of it and your child can decide what they want to do with it and how they want to use it. This also works out well in case of your unfortunate death; the plan will automatically be shifted to your child.


  • If you start the plan early, you will be able to save more over a long period of time and you can be tension free till the child plan insurance policy matures and you get the lump sum amount for the future of your child.


Child plans are extremely easy to take up as there is not much effort that would go into it. Also, it does not have any renewal options, like many other insurance policies out there, that you would have to keep in mind and keep renewing from time to time without delay with the risk of the policy being lapsed. Get the child education plan to ensure a safe and financially secure future of your child in case of your unfortunate demise which would leave your child helpless if you did not have the child plan to help your child with.

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