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Advantages Of Purchasing A Child Life Insurance Plan

Updated On Aug 14, 2021

A proper financial plan will help you ensure financial stability at every important milestone of your child’s life. Child life insurance plans are specifically designed to meet future financial requirements of your child. If you want to help your child fulfill his goals and aspirations, then you must consider investing in a child life insurance plan. 

Child life insurance plans can help you fund your child’s higher education, extracurricular activities, dream wedding and also help them kick start their career. Child life insurance plans also provide financial security to your child in case of your unforeseen demise any time during the policy tenure. 

Advantages Of Purchasing A Child Life Insurance Plan

Below mentioned are some advantages of purchasing a child life insurance plan:

  1. Financial Security: As an earning parent of a child, your income makes your child fully dependent on you for his/her financial expenses. However, in case of your unfortunate demise that may cause a financial problem for your child , a child life insurance plan acts as a safety net. This plan provides a death benefit in case of an unforeseen demise of the parent during the policy tenure which will help the child to fulfil his/her financial requirements in the absence of their parents. If a child is minor the death benefit shall be provided appointee, the appointee can help the child meet his/her financial needs. 
  2. Waiver of Premium: Child life insurance provides a waiver of premium benefit which can be very useful under unfortunate circumstances such as untimely demise of the parent during the policy tenure. Under this benefit all due premiums get waived off and the policy continues. The death benefit/maturity benefit shall be provided to the child when he/she completes 18 years of age or at the time of plan maturity whichever happens first. 
  3. Maturity Benefit: Child life insurance plans offer maturity benefits at the end of the policy tenure. The parents can choose a maturity date according to the time-frame matching the child’s future financial requirements. Throughout the time you keep investing in the child life plan, your corpus grows and you create a corpus to fund your child’s future expenses. 
  4. Partial Withdrawal: Child life insurance allows partial withdrawals wherein the parents can withdraw a certain amount from the investment to fulfil your child’s urgent financial requirements. After the lock-in period you can withdraw a certain amount of investment to fund your child's extra curricular activities etc. 

Endnotes

Child life insurance plans are comprehensive insurance plans that provide financial protection to your child helping them to meet their daily financial obligations and achieve their goals even in your absence. Some child life insurance plans offer waiver of premium benefit, maturity benefit and allow partial withdrawals. 

Must Read: Which is The Perfect Investment for a Girl Child?

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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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