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Child Insurance - More Important Than You Think

Published On Mar 29, 2019, Updated On May 04, 2020

Every parent wants their child’s future to be secure by all available means. Be it by saving money in their name or by investing in assets, only to use them later for education, marriage, and other purposes, Indian parents go out of their way to present the perfect future to their child.

Are you too are a parent concerned about the future of your child? Have you had sleepless nights thinking about what else can you do to make their time ahead free from worries? If so, you would very well understand the urge to gather every single means and direct it towards the betterment of your son or daughter, something which every parent experiences.

In case, you have been looking forward to investing in a product for your child’s benefit, consider going for health insurance for kids without giving it a second thought!

Surprised with the mention of child insurance? Don’t be! Child insurance is prominent in its own place! To have a better understanding of its need, read along.

Importance of Child Insurance? 

Life is uncertain and spares none, be it kids or adults. When something bad is destined to happen, it takes place and unfortunately, we don’t have any control over it. However, the least we can do is prepare ourselves for anything miserable that may or may not take place.

Buying a child insurance plan is nothing, but preparation for the future so that if something terrible takes place and you are no more to handle it, your son or daughter along with your spouse don’t end up feeling helpless. In other words, IMPORTANCE OF CHILD INSURANCE IS PARAMOUNT because it is specifically designed to secure the future of your child, in case of your unfortunate demise. So, if something happens to you, your child will be able to spend your life comfortably, something you would always wish for, owing to child plan.

Child Plan Better Than Term Plan? 

Many financial advisers recommend investing in a term plan as it does the job of securing the family’s future in case of an untimely death at a lower cost. However, it is advisable to go for child plan! Reasons? They are major!
What makes child plan better than term plan are facts that while the term insurance comes to an end with the demise of the insured, it’s not the case with child plan. When the policyholder dies, the death benefit is paid and the policy continues as the insurer pays rest of the premiums, unlike in the case of term plan, which comes to an end with the death of the policyholder.

Another benefit in investing in a child plan is that if the policyholder survives, the element of maturity benefits stills holds, something which doesn’t in the case of a term plan.

That being said, doesn’t child plan seem the better choice?

But, wait! That’s not all! There are numerous other short-term and long-term benefits of child plan you need to uncover.

Advantages of Child Insurance

  • Child plans succeed in keeping the problem of education-based expenditure off from the parent’s minds. Even with the minimum premium payment, child plans are able to provide a significant amount. So, as far as the financial support in the area of child education is concerned, the child plan succeeds in providing the same.
  • Children fall ill every now and then. Child plan takes care of the same as well as comes with the option of withdrawing money during the tenure and utilising it for the treatment purpose. All in all, the child plan helps in minimising the financial burden that is caused by medical expenses in a massive way.
  • Another benefit of a child plan is that it protects the income of those children who start earning money at a young age. As a matter of fact, it provides the benefit of capital appreciation over the long term for the child.
  • Child plans serve as collateral for a loan that one takes for higher education. In fact, they can also be utilised as collateral for other child-related borrowings.  

So, are you ready to invest in one of the best children’s insurance schemes?

Start exploring your options, but don’t forget to plan your primary requirements that you want to be met before making a decision. In addition to the same, keep in mind the below-mentioned features that are necessary in a child plan. The list includes:

  • Premium amount, which is subjected to the sum assured and the amount of maturity.
  • Premium payment mode, whether regular (annually, semi-annually, or quarterly) or singular (paid only once).
  • Policy term, which should be chosen to meet the exact period.
  • The maturity amount that you would require at policy maturity. Note that one can receive the maturity amount over a period of 5 years as a whole.
  • Waiver of Premium, an element that comes inbuilt into child plans. However, if not a part of the plan, it should be included.
  • Partial withdrawals, which are selected to meet the financial needs of the major moments.
  • Riders and Benefits such as Premium Waiver, Critical Illness Rider Benefit, and Accidental Death, & Disability Benefit, owing to the fact that they prove to be an add-on to the coverage offered by the child plan.

Also Read

Health Insurance for Family-Why Do You Need One?

Personal Accident Insurance Policy-Benefits and Exclusions You Must Know!

To conclude, give child plan the significance it deserves if you want your beloved son or daughter to stay away from financial issues of any kind, in case you are no longer there to take care of them. After all, their comfort is what matters to you.

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