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Child Insurance Plans - Myths VS Reality

Published On Oct 27, 2021

Your child's or children's happiness is extremely important to you, and you will go to great lengths to ensure that they receive the happiness they deserve. You provide them with comfort, education, and a high-quality lifestyle, among other things. However, you may overlook the need of considering how they will handle their cash if we are not around. Furthermore, the growing expense of schooling may cause you to be concerned about the future. A dependable child life insurance plan enters the picture, providing you with total financial safety for your Child's future.There are several Child life insurance policies on the market, but there are also many misunderstandings about them. So, before you go out and buy any of them, let's talk about some misconceptions and the truth behind them so you can make an informed selection.

Child Insurance Myths Busted 

The following points seek to debunk myths and provide a fact check in order to make better informed and responsible decisions:

Myth 1 : A child's life insurance policy solely covers the life of the child.

Reality: Most child life insurance policies cover the income-earning parent's life rather than the child's. The advantages provided are such that the child's aspirations can be realized even when the parents are not around.

Myth 2: When an insured parent dies, the death benefit is paid out as a lump amount and does not cover        the child's future requirements.

Reality: Many child life insurance policies include provisions such as Family Income Benefit, which ensures that recurring payments are sent to the family (in addition to a lump sum payout upon death) so that the Child's educational needs are met.

Myth 3: Inflation is not taken into account in Child plans. As a result, the reimbursements will not be    adequate to support the child's tuition.

Reality: To create greater returns, market linked Child life policies put your money in a fund of your choice. Some plans provide Guaranteed Loyalty Additions, which increase a particular percentage of fund value to your investment fund on an annual basis when certain years are completed. These characteristics allow you to grow faster.

Myth 4: If you invest in a Child plan, your money will be locked for the whole policy term and will not be able to be withdrawn in instalments.

Reality: Child plans are adaptable in reality. After completing a 5-year term in a market-linked plan, you can make partial withdrawals.

Myth 5: The plans for children aren't always clear.

Reality:  All of the aspects of a market-linked Child plan are clearly stated. You will get documentation and frequent holdings statements, allowing you to keep track of your investment.


Even if you are not present, life insurance Child plans are a wonderful way to ensure that your child accomplishes his or her goals and has financial resources. Most parents are hesitant to spend money on a child's plan, but a child insurance policy might be a great method to offer financial security for the youngster. Here are some common misunderstandings concerning child insurance that have been debunked. The following information is intended to address common misconceptions about child insurance. So consider the facts and make an educated decision about your children's future. Consider the benefits of having a Child policy.

Also read - SUD Life Bright Child Plan: features & benefits

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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