IC-22 Life Insurance Underwriting – Exam Study Notes

Child insurance plans are very popular among the parent community. It is every parent's dream that their child gets the best education and a lavish wedding, and parents are ready to do everything it takes to accomplish this. So the moment the child is born, parents start investing for the child's education and marriage.
Child insurance plans help the parents in securing the financial future of their children. Child plans are purchased by parents to save funds for their children's education, marriage and other financial needs, and also offer financial security for the children's future in case any unfortunate event e.g. the parents' untimely death.
Child plans are offered in two variants : Traditional child plans, Child ULIPs (Unit-linked insurance plans)
Traditional child plans : these are further divided into two sub-categories. The first being child endowment plans which offer a lump sum on maturity and the second being child money-back plans, which offer periodic payments at specific intervals.
Child ULIPs (Unit-linked insurance plans) : these offer the fund value on maturity. In case of unfortunate death of the parent during the plan term, most child plans have a 'waiver of premium' built-in rider, which makes sure the plan continues.

Important Points for IC 22 - Life Insurance Underwriting Exam