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Child Life Insurance Plans - Myths VS Reality

Updated On Jan 06, 2022

You care deeply about your child's or children's happiness, and you will go to tremendous lengths to ensure that they have the happiness they deserve. You offer them with, among other things, comfort, education, and a high-quality lifestyle. However, you could miss the necessity of thinking about how they'll handle their money if we're not there. Furthermore, the growing expense of education may make you fearful about the future. When you have a reliable child life insurance plan in place, you can rest certain that your Child's future will be financially secure. There are many different types of child life insurance policies available, but there are also a lot of misunderstandings about them. So, before you go out and buy any of them, let's speak about some common misconceptions and their debunking so you can make an informed decision

5 Myths and Facts About Children's Insurance Plans

The vast majority of people have opposing viewpoints on the Child plan. The following are five typical misunderstandings about child planning, along with the facts:

1. Child life insurance policy only covers the child’s life

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 realised even if the parents are not there.

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.

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.

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 If you invest in Child plans, your money will be locked for the whole policy term and will not be able to be withdrawn in instalments.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

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.


When it comes to purchasing a Child’s life insurance policy, don't rely on word of mouth. Instead, you may contact InsuranceDekho's customer service representatives and get your questions answered. They will not only clear all your worries, but they will also assist you in purchasing the most appropriate Child life insurance plan online without any difficulty. As a result, investing in your child's future ambitions is a significant decision that necessitates thorough consideration of your investment alternatives.

Do read - Best Child Savings Plans For Child's Education

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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