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Are Child Life Insurance Worth It?

Published On Oct 08, 2021

Child Plans are designed specifically for children to help them fulfill their financial future demands. Both insurance and investment alternatives are available for children's plans. These programs allow young people to build up an investment portfolio that will help them reach significant life milestones in the future. Child Plans offer you a lump-sum payment as the sum assured at policy maturity, as well as other benefits that cover your child's educational costs, such as school fees, tuition fees, and marriage costs. These plans also provide you with a number of cutting-edge investing alternatives for your child's bright and secure future.

Most Important Advantages Of Child Insurance Policies

Before deciding on an insurance policy, it's a good idea to look at a few. This will help you to create a list of your criteria and choose the best plan for your needs. Understanding the components of a child insurance plan can help you make a better-educated decision when choosing one. The following are the most essential features of child insurance policies that make them advantageous:

1. Long-Term Investment Possibility

Depending on your needs, Child Plan offers both short-term and long-term investing methods. A great investment strategy for your youngster will contain long-term investment options or assets such as equity funds. The higher the payment at maturity, the longer the investment plan.

2. Goal's Protection

Goal Protection with Child Insurance Plan is an option that covers the aim of supporting your kid with further education and other important expenses even if you are not present. It not only pays out a life insurance benefit if the insured person passes away, but it also invests. If the insured dies before the maturity date, the plan will mature and pay maturity value to the policy's nominee.

3. Partial Withdrawal Facility

Partial withdrawals are permitted in many child life insurance plans. You may use this tool to withdraw a certain amount from your fund value several times during the plan's lifetime. 

4. High Profits 

Child plans may yield returns of up to 12%, which is higher than the long-term rate of inflation. Child Insurance Plans not only protect your investment from deterioration but also assist your money to grow faster.

5. Benefits On Death

A Death Benefit is a very useful feature since it assures that your kid is protected even if you are not present. If the policyholder dies before the conclusion of the policy term and all premiums have been paid up to that time, the policyholder will receive a death benefit. As a result, a Child Plan assures that your child does not suffer any unexpected financial hardship.

6. Advantage Of Maturity

Even after the insurance term has ended, a Child Plan ensures that you have enough money in your savings to pay for your children. At the end of the insurance period, the Maturity Benefit is paid out. If your plan contains a Premium Waiver provision, your child can keep the plan active after you die (for the Maturity Benefit and the protective cover). They won't have to pay the remaining premiums after you die if you have a Premium Waiver.


Child life insurance plans might help you plan for your child's future financial needs. These maps can assist you in finding your child's school, extracurricular activities, and medical crises. This plan may be beneficial in the event of a parent's untimely death since it offers financial assistance to the child if the parent dies while the insurance is active. A parent must get a child's life insurance policy to meet their child's needs.

You may also like to read - 3 Riders Which Are Best Suitable For A Child Life Insurance Policy

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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