ULIP plans offer the flexibility of market linked returns on your investments and life insurance cover for you and your family.

1. ULIP PLANS

2. IS CHILDREN’S ULIP SUITABLE FOR YOU?

3. • To combat inflation and save effectively for your children’s education, term
insurance, along with disciplined investments in mutual funds, are
important tools. There are also a few children’s Unit-Linked Insurance
Plans (ULIPs) that are being offered by insurance companies that help you
save effectively for your child’s higher education.
• The main advantage of children’s ULIPs are that they offer individuals a
triple advantage, along with high insurance coverage, disciplined
investments, and participation in the equity market along with the choice of
a rider option. Triple advantage means that at the eventuality the sum
assured is paid to the nominee, the future premium is waived off and the
maturity value would be paid at the time of maturity, ensuring that your
children’s future dreams are fulfilled.
• If the policyholder dies. But the policy ends right there.
• Thus, a children’s ULIP ensures that your child’s dreams are fulfilled, no
matter what your child wants to be, no matter what the cost of fulfilling it,
no matter what the circumstances are.

4. • However, if the investment period is long and one is investing in a well
disciplined way, the costs tend to be covered, given that one gets to
participate in the equity market over the long term. Therefore,
children’s ULIPs are recommended only for those individuals who
have a time frame of 10 years or more.
• These policies are also reasonably transparent in terms of where they
are investing, their charges and also offer varied asset allocation,
along with a few free switches, where one can change the asset
allocation depending on the market condition.
• One main disadvantage of ULIPs is that surrender charges are hefty
during the initial years. This is to encourage investors to keep the
policy on hold till the maturity date which will bring in discipline in
investments.
• The important difference between a term plan plus a mutual fund
combination versus a Children’s ULIP Plans is that the earlier one
offers a high cover at a low cost and gives out a lump-sum amount to
the nominee,

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