Features of Child Insurance Plan which Make it a Must have Cover
Published On Jul 10, 2021
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Child life insurance plans are a smart way of protecting and safeguarding your child’s future. These plans are specially curated for children to fulfill their financial requirements in future. Child life insurance plan is a mix of insurance and investment instruments. Child life insurance plans help in building up a corpus which helps your child to achieve important milestones in the future.
These plans provide you a lump sum amount at the time of plan maturity which can be used to cover your child’s educational expenses, martial expenses or help them kick start their dreams. Child plans have 3 common features which make them a must have cover.
Features Of Child Insurance Which Makes It A Must Have Cover
Following are the 3 features that make child life insurance plans a must have while you are planning for a financially secured future for your child:
1. Maturity Benefit: Child life insurance offers a maturity benefit at the time of plan maturity. The maturity benefit can be used to cover your child’s future financial needs such as tuition fees, extra curricular activities, higher education or marriage expenses. The maturity benefit can also help you fund your child’s dream, you can help them pursue their goals by providing them with financial support.
2. Partial Withdrawal: Under child life insurance plans you can avail the benefit of partial withdrawals when you require it during the policy term. The partial withdrawal can be made to provide funds to nurture your child’s talents. Partial withdrawal can be used to provide for extra curricular activities for your child.
3. Waiver of Premium Benefit: Child life plans include a waiver of premium benefit under which all future payable premiums are paid by the insurance company in case of your unforseen demise during the policy term. This benefit of child insurance plans ensure policy continuance and also ensures financial security of your little one in your absence.
Child life plans are a must purchase insurance product because this plan ensures your child’s financially secured future with or without you. This plan offers partial withdrawal, maturity benefit and waiver of premium benefit which make this type of plan a must have cover. As a parent you would always want the best for your child and a child insurance plan is a smart way to protect and safeguard your child's future even when you are not around.
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.