Almost all the insurance firms offers us with the child plans; out of which only few allows the policyholder to invest in debt and equity, some might be market linked policy and others may include traditional plans which will help you invest in debt.

Many advices pour in when a parent think of buying a plan for his children. Few might suggest them to go for the term plans instead of child plans as these are costlier. Others may say that the amount you pay as a premium in a child plan is enough to buy a term plan and invest in some other investments like mutual funds. But the problem with a term plans is, if the parent after taking the plan for five years dies; The child will be provided with the lump-sum amount but the investments in mutual funds on behalf of the policy holder will be stopped.

Now this is where the child plan scores well, even if the insurer dies after taking the policy it will not only pay the lump sum amount, but also continue investing in the mutual funds on behalf of the policyholder. According to the insurers, waiver of premium feature that comes in a child plan is the best as it will not ruin the investment plan of a child.

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