Children's policies are becoming increasingly popular, especially when viewed in the context of the rising cost of education. This article attempts to explain the rudiments of a child insurance plan in detail.

It is every parent's desire to secure the future career and education of their children. A recent survey by AVIVA Life Insurance conducted in 25 countries revealed that 44% of Indians showed propensity for investing towards children education compared to just 17% in other countries.

There is no denying the fact that the cost of education has zoomed up considerably in the recent times. Cost of schooling has become dearer and it costs around Rs.1 to 2 lakh for a graduate level course. A professional course like engineering costs anywhere between Rs. 6 to 8 lakhs. If it is a medical seat, obviously it costs around Rs. 75 lakh.

The birth of a child brings responsibilities to the parents. The burgeoning cost of education makes it imperative to secure the financial future of the child especially if god forbid an unfortunate calamity were to befall on the parents. Moreover, families are nuclear and there is no joint family system in vogue which simply means that children have no financial security in case of death of the parents. The child insurance policy not only provides regular savings for the child's future needs, but also financially secures him in the eventuality of the death of his parent (policyholder). The guardian will get the policy amount and this will help him/her to take care of the child's education without any monetary problems.

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