It is believed that an Indian investor is not that mature to be a long term player as he is always scared by the market instability and also unable to create wealth for a long term. Thus it is usual that a parent will stop putting money in mutual fund for his child due to this market instability."If he is given a choice, the investor loses discipline and stops investing," said Swapnil Pawar, head of products and advisory, Karvy Private Wealth.

In a child plan the parent will invest every year with confidence of saving enough for his child in future. According to experts if you stop paying premiums in a child premium, it will not create a hassle but it might lead to few financial problems in future and will not reduce their investment. When compared to other policies like ULIP, child plan seems to be much planned as it meets all the needs of a child. While in ULIP even if you put your hard earned money there is no guarantee that your needs will be fulfilled in time.

Everyone is concerned about the high mortality charges in a child plan but do not forget that a waiver of a premium is a double advantage and it’s not free. The reason behind this high charge is because they provide with both the insured amount and the fund value even after the death of the policy holder, Not to worry if your child’s needs are increasing day by day as the child plan will take care of all his needs right from his birth till he becomes a graduate. Thus it is advisable to go for a child plan in order to secure you child’s future even when you are not around.

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