Child plans: Myth vs Reality
Updated On Jan 28, 2022
Table of Contents
- Myths About Children's Insurance
- Myth 1: A child's life insurance coverage covers only the child's life.
- Myth 2: When an insured parent passes away, the death benefit is given in one lump sum and does not meet the child's future needs.
- Myth #3: Inflation isn't factored into child plans. As a result, the reimbursements will be insufficient to cover the cost of the child's tuition.
- Myth #4: If you buy a Child plan, your money is locked in for the whole policy term and cannot be removed in installments.
- Myth 5: Children's plans aren't always apparent.
- Conclusion
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 importance of considering how they will manage their cash if we are not present. Furthermore, the rising cost 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 plans on the market, but there are also many misconceptions about them. So, before you go out and buy any of them, let's talk about some myths and the truth behind them so you can make an informed selection.
Myths About Children's Insurance
The following points are intended to dispel myths and provide a fact check so that you may make more informed and responsible decisions:
Myth 1: A child's life insurance coverage covers only the child's life.
Reality: Most child life insurance policies cover the life of the income-earning parent, not the child. The benefits supplied allow the child's dreams to come true even when the parents are not around.
Myth 2: When an insured parent passes away, the death benefit is given in one lump sum and does not meet the child's future needs.
Reality: Many child life insurance plans include provisions like Family Income Benefit, which ensures that the Child's educational needs are satisfied by sending monthly payments to the family (in addition to a lump sum payout upon death).
Myth #3: Inflation isn't factored into child plans. As a result, the reimbursements will be insufficient to cover the cost of the child's tuition.
Market linked Child life policies invest your money in a fund of your choice to generate higher returns. Guaranteed Loyalty Additions are a feature of some plans that add a set percentage of fund value to your investment fund on an annual basis once certain years have passed. You can grow faster if you have these attributes.
Myth #4: If you buy a Child plan, your money is locked in for the whole policy term and cannot be removed in installments.
In actuality, children's plans are adaptive. You can make partial withdrawals after completing a 5-year term in a market-linked plan.
Myth 5: Children's plans aren't always apparent.
Reality: Every part of a market-linked Child plan is mentioned openly. You'll receive documentation and holdings statements on a regular basis, allowing you to maintain track of your investment.
Conclusion
When it comes to purchasing a child's life insurance policy, don't rely on word of mouth. Instead, you can contact InsuranceDekho's customer service representatives and have 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 hassle.
You may also like: Basic Terms And Conditions Of A Child Life Insurance Plan
Some Child Insurance Myths Busted
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.
