What is Children’s Policy? Explain its features.
These types of policies are taken out on the life of the children where the parent is the proposer. Through such policies the parent can plan to get funds when the child reaches various stages in life.
These plans carry high premiums and low returns for the policyholders.
These so called children plans are just a separate category aimed at children’s life but in reality they are either a money back policy or endowment policy or even a combination with some other market linked structure.
The only good thing about such plans is that they offer waiver of premiums in case of unfortunate death of the parent/proposer during the term of the policy.