There has been a tremendous shift in the socio-economic demographics in India post liberalization. The vast Indian middle class has not only been the driving force but is also bearing the heat of it. Nuclear families, scaling up of living standards, costly education, medical facilities have made it important for one and all to make wise decisions when it comes to savings and investments. After all, savings and investments together guarantee a safe future. Of the various instruments out there in market, insurance has emerged as one very important and safe way to plan and secure future. As the amount one pays as premium for child plans insurance policy is not taxable, a lot of people took it up as a tool to avoid or minimize the income tax. However, today the insurance has come a long way from there. Insurance, as a sector, has grown enormously over past few years and today it is not limited to insurance of the bread earner of the family.

Insurance has taken various forms and there are plenty of options to choose from. child plans insurance is one such important option. It is gaining momentum in a big way. Child insurance and child investment plans help individual and families not only in saving their income but are also looked up on as right investment for children' future. The child insurance policies in India are somehow different from traditional insurance plans. While an insurance plan provides death cover for the proposer, this has some additional advantages which make it a compelling offer. In the case of a child future plan, not only is the nominee provided death benefit but it also ensures continuation of premium for the benefit of child. More importantly, child plans also gives the investor the advantage of a higher life cover as compared to a traditional plan. People from the trade advice younger parents to go in for a plan as mortality charges would be lower. While taking a child insurance policy, one should have premium payment tenure of at least 10 years for a plan failing which it can be slightly expensive.

The financial institutions, which offer child insurance in India, are plenty in number and one has a varied range of plans to choose from. Chosen carefully, a child plans policy helps one to save systematically so that one can secure the future needs of his child. Be it higher education, his or her first home or any other requirement, one can always be there for his child when he or she needs him. To sum it up, one should definitely go for it as the old saying going, early bird catches. Plan early and get handsome returns.

Source: http://www.sooperarticles.com/finance-articles/insurance-articles/insurance-policy-your-child-978976.html?

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