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5 Good Reasons to Purchase a Child Life Insurance

Published On Aug 17, 2021 6:00 PM By InsuranceDekho

As a parent, if you want to provide your child with the best of all the options and a financially stable future, you can do it through a lot of means. Some ways to invest successfully and productively are mutual funds, public provident funds (PPFs), gold ETFs, stocks, fixed deposits, debt funds, and more but, all these ways require the existence of a parent or a guardian since all of these are participating plans. They require a parent or a guardian to continuously invest in these plans. They stop providing you growth after you are gone. The child will be left all by themselves without a proper financial future. 

One investment plan, a child plan, however, provides facilities to take care of your child even in the absence of a parent or a guardian. The child will never be alone and helpless. The child will be able to experience the best of the educational facilities and lead a financially stable life. Now let us see how.

5 Good Reasons To Buy a Child Insurance Plan

To be able to provide a financially secure future to your child, you must start early to get the most out of your investment. Now here are the reasons you must invest in your child in the first place -

  • Educational Expenses

Child plans provide saving options to help you save for your child’s educational expenditure. Let’s face it, education in recent times has become way more expensive and competitive. If the child wants to study abroad, they will need some financial assistance and guidance to fulfill their preset goals.

  • Security for Their Goals

Child plans not only provide security to the child but also ensure that all their goals are safely met. They provide security to the goals of the child. They make sure that the child is financially supported while fulfilling all their goals.

  • Death of The Parent

Child plans are participating plans and require you to pay premiums from time to time but in case the parent or the guardian of the child passes away under unforeseen and unfortunate circumstances, the child is not left alone. The child will receive financial help to meet their basic necessities. The child’s plan will not end when the parent or the guardian passes away. The insurer pays the premium amounts to the plan after the death of the parent or the guardian. 

  • Medical Expenses

If the child experiences an accident or a medical condition where they need to undergo an operation or surgery, these plans will support financially the parents of the child to pay the medical expenses. This way, the financial burden of the parent is deduced.

  • Collateral Loans

These child plans can also be used as assets for availing of a loan. They are accepted by a wide range of plans as collateral assets to provide you with a loan.


Child plans are great to save money for the future of your child. Your child will be supported financially and will comfortably be able to fulfill all their life goals. They will be taken care of even after your demise and these plans provide medical benefits along with being accepted as collateral assets.

Also read 

What is the Most Effective Investment?

Best Child Plans To Invest In 2021

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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