Page 52 - Insurance Times December 2020

A child insurance plan comes into play in these situations. for the plan manageable and affordable for a decided upon
The plan provides an avenue of investment for child's future corpus. Premiums for generating the same return rise with
and guarantees the promised corpus even if parents dies. every year delayed. With that in mind, if the child is already
Child insurance plans come with the dual benefit of insurance in teens, child plans may not be very effective means. It is
and investment. Buying a child plan with interim or terminal better to go in for other investment options along with a
bonus, as per the need, can help you plan your child's future pure protection plan.
with security. Some of the plans offer reversionary bonus that
is compounded every year, which can help in getting a According to the survey done on parents who have
bigger corpus. purchased insurance for their children, it has been found
that these parents become relieved as their burden on
On the other hand, a child insurance plan offers a lump-sum education and marriage cost minimizes. And when the
payment on the death of the policyholder, but the policy maturity period ends, their child can use this money wisely.
does not end. All future premiums are waived off and the So, it's your turn now to give your best just like your parents
insurance company continues investing this money on behalf had done for you to your child's dreams of an ideal career,
of the policyholder. The child gets the money at specified dream wedding, capital for business and so many other
intervals as planned under the policy. In this way, the parent specialized needs that children have from time to time.
ensures that his child's needs are taken care of even if he is
not around. Investing in a child insurance plan will entitle Dear parents,
you to tax deductions for the premiums paid as per Sec 80C Its time to remember, one thing about time, that is time
of the Income Tax Act, 1961. runs very very fast. We will not even know, when our
children grew up, and in dire need of money for marriage,
As far as the right time to buy a child plan comes into business, education etc. etc.
mindtime is when you buy child plan is an important factor
for the policy to be effective in terms of premium paid and I remember a statement from SBI chairman," Best time to
the returns. Just like any investment to grow substantially, plant a tree was 20 years before, the next best time is
child plans taken for a longer duration pay better whether now.".So i am reminding parents specially here that, time
traditional or ULIP. Since the maturity date of these plans is to buy a child policy or policies right now and now only.
fixed, it is better to buy these when the child is still young.
This gives ample time for the funds to grow. "You don't buy life insurance because you are going to die
but because those you love are going to live"
Buying a plan early in the child's s life also makes premiums I thank Professor Paramesh for valuable inputs

Foreign direct investment in general insurance slips to Rs. 509

crore in FY20

FDI in the general insurance sector slipped to Rs. 509.07 crore in FY 2019-20 from the previous year, latest data by
the General Insurance Council (GIC) showed. In FY2018-19, FDI in the non-life insurance space was recorded at Rs.
516.61 crore. Since the opening up of the insurance market in 2000, the non-life sector attracted a total FDI of Rs.
4,721.68 crore as on March 2020. It was Rs. 4,212.61 crore at the end of March 2019. It is to be noted that FDI
limit in the insurance sector has been hiked to 49% from earlier level of 26%. New India Assurance and GIC Re were
listed on stock exchanges while ICICI Lombard from the private sector went public in 2017.

The Insurance Times, December 2020