In this policy, the investment risk in the investment portfolio is borne by the policyholder.
Investing in a child insurance plan might not seem like a good idea because a child does not have a financial value (there is no insurable interest) nor are there any liabilities or dependents. However, there is a misconception that the child’s life is to be insured. The truth is that in a child plan, the parent is the life assured while the child is the nominee!
A child plan is a popular financial vehicle to build a corpus for your child. It takes into account the various milestones in your child’s future for which a substantial amount of money might be needed. Here is why you should consider investing:
A child life insurance plan provides you the dual benefit of investment and insurance. It safeguards the various milestones in her life by providing an insurance cover at all times. On maturity the proceeds can be used for any of the financials needs.
Good education is the best gift that parents can give their children. However, quality education comes at a price. In addition to the basic tuition, expenses towards extra-curricular activities, field trips, etc., add up to a significant amount. A market-linked investment plan helps you achieve higher returns by making your portfolio inflation-proof.
Since a child insurance policy has a Surrender Value, it can be offered as collateral to avail a loan. Based on the value of the underlying fund, the loan amount can vary.
Child insurance plans come with a Waiver of Premium Rider. This ensures that in case of your death, all the future premiums will be waived and the remaining dues will be paid by the insurance company. So no matter what happens, your child is entitled to a lump sum amount for his future.
If you are a young parent desirous of building a corpus for your child, and are ready to invest for the long-term, consider the Max Life Shiksha Plus Super Plan which is a Unit Linked Insurance Plan that offers a comprehensive solution for securing your child’s future.
Max Life Shiksha Plus Super (UIN: 104L084V02) is a Non - participating Unit linked Insurance Plan
Life insurance coverage is available in this product. In this policy, the investment risk in the investment portfolio is borne by the policyholder.
The linked insurance products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender/withdraw the monies invested in linked insurance products completely or partially till the end of fifth year.
Unit Linked Insurance Products (ULIPs) are different from the traditional insurance products and are subject to the risk factors. The premium paid in the Unit Linked Life Insurance Policies is subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Max Life Insurance is only the name of the insurance company and is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these funds, their future prospects or returns.