Everything That You Need to Know About Buying Insurance for Grandchildren

As a grandparent, onei of the best giftsi that you can givei your grandchild is lifei insurance. Check out thisi post to know somei of the most importanti things you should knowi about insurance plans fori children in India. 

  

The birthi of a grandchild isi one of the happiesti and proudest moments ofi a grandparent's life. Ini the future, your grandchildi will look up toi you as a rolei model. To set thei right example, the gifti you select for youri grandchild should be somethingi that could stand thei test of time. Lifei insurance perfectly matches thisi requirement.

  

Apart from being ai lifelong companion, life insurancei plans can also helpi secure the financial lifei of your grandchild andi also offer financial protectioni against their sudden demise.i If a child insurancei plan is what youi are looking for, herei are some of thei most important things youi should know about them:

  

1.i Working of Insurance Plansi for Children

  

Life insurance plansi for children are ofi many different types ini India. You can purchasei a whole life insurance,i Unit Linked Insurance Plani (ULIP), endowment plan, ori guaranteed returns plan. Manyi of the insurance providersi offer different variants ofi these popular types ofi insurance plans.

  

When it comesi to purchasing life insurancei for kids, most parentsi and grandparents prefer optionsi like ULIP, as iti helps generate regular returnsi while also providing lifei protection. The returns fromi such plans are market-linked,i and in case ofi the demise of thei policyholder within the policyi tenure, the beneficiary ofi the policy will receivei either a fixed deathi benefit or the entirei ULIP investment.

  

2. Minimum Entryi Age

  

The minimum entry agei for life insurance plansi in India varies betweeni insurance providers and thei type of policy youi select. For instance, therei are life insurance plansi with a minimum entryi age of 0 years.i So, you can purchasei such policies even fori new-borns. Then there arei savings and higher educationi plans that generally requirei your grandchild to bei at least 18 yearsi old. Such plans arei mostly preferred by grandparentsi to help secure thei financial and professional futurei of their grandchildren. 

  

3. Policyi Tenure and Premium

  

The policyi tenure for a child insurancei plan in India is generallyi 25 to 45 years.i For insurance policies thati are available for new-borns,i the maturity age isi generally 25 to 30i years. So, if youi are purchasing one suchi plan for your recentlyi born grandchild, it willi mature by the timei he/she is 25-30 yearsi old. 

  

Other types of insurancei plans that mostly focusi on long-term savings andi higher education of childreni generally have higher tenuresi ranging from 30 yearsi to 45 years andi above. 

  

4. Maximum Death Benefit

  

Thei death benefit offered byi a life insurance policyi abundantly relies on thei income of the policyholder.i As your grandchild doesi not earn any income,i the death benefit willi not be as highi as the benefit offeredi to an adult whoi earns a regular income.

  

So,i while you should definitelyi consider a reliable insurancei provider that offers thei highest death benefit, youi should focus more oni the additional features andi benefits of the policy.i For instance, there arei many different types ofi life insurance plans thati come with a hosti of add-on riders toi increase the coverage amount.i There are also plansi with guaranteed additions, cashbacks,i bonuses, and more. 

  

Life Insurance:i A gift of ai lifetime

  

If you are planningi to gift something valuable,i practical and long-lasting toi your grandchild, life insurancei is definitely one ofi the best options. Geti in touch with ai reputable insurance provider toi know more about thei available plans and selecti one that you believei would be the besti fit for your grandchild. 

  

Makei sure that you doi understand the plan, itsi benefits, and limitations beforei purchasing to avoid anyi kind of errors ini the future.