Your children’s education is your responsibility. Your children need to be educated even if something untoward happens to you.
This is where you must consider a Waiver of Premium Rider in Child Endowment Plan.
This is a twin benefit plan giving you:
You (The parent) of the child are the proposer of the child endowment plan. The proposer is also the life assured in the policy. The policy is taken on the life of the proposer (parent) in a child endowment plan.
The proposer pays the premiums of the child endowment policy. If the proposer/parent dies, the child gets the money for his education. Higher is the premium, higher is the sum assured you can take in a child endowment plan. When the child endowment plan matures, you get a lump sum (Sum assured + bonus), which you use for your children’s education.
The child endowment policy matures when your child is 18-21 years of age.
The waiver of premium is a rider benefit in a child endowment plan. A rider is an additional benefit you obtain by paying an additional/higher premium. You pay the premiums in the child endowment plan until the maturity of the plan or for a fixed period.
When the child endowment plan matures you get
If you/proposer of the plan die before the maturity of the plan, your child (or the guardian) immediately gets the sum assured. All future premium payments are immediately waived off (No further premium payments need to be made).
The Insurer takes care of the premium payments (Pays them on your behalf).On maturity of the plan (When your child is 18-21 years), a second payout is made. Your child gets the maturity amount. This is a lump sum paid on the maturity of the policy.
The child endowment is a twin payout policy:
When you avail a child endowment plan make sure to take a waiver of premium rider in your plan. The money you get from this plan can not only help you to meet your children’s education expenses, but also help in their marriage.
Your child can get the money not only on the death of the proposer but also on the disability (if the proposer is severely disabled and not able to work). You can avail a child endowment policy when your child is as old as 1 day. The earlier you avail the plan greater are its benefits and earlier would be the maturity of the plan.
The maximum age you/proposer of the plan can invest in the child endowment plan with waiver of premium rider is when you are 50-60 years. So make sure you avail a child endowment plan with a waiver of premium rider for your child.
The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.