Features of Child Life Insurance Plans
Updated On Apr 26, 2021
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Child plans are investment cum life insurance plans, that help you save your money for your child’s financially secure future. Child plans are just like a regular life insurance plan but in child plans the nominee mentioned under the life insurance policy is the child of the life assured. In case of an unforeseen demise of the life assured, the sum assured is paid out to the nominee i.e. the child of the life assured.
Some child plans also offer Waiver of Premium option wherein in case of life assured unforeseen demise all the future premiums of the life insurance policy gets waived off, and are paid by the insurance company itself. The maturity benefit amount is paid out to the nominee at the time of the maturity. The sole purpose of purchasing a child plan is to ensure that your child has adequate financial resources even when you are not around.
Also Read:- Best Add-On For Child LIfe Insurance Plans
Features of Child Life Plan
Following are some of the key features of child plans -
1. Death Benefit
Under child life plan, if the life assured passes away the sum assured i.e. the death benefit is paid out to the nominee. The nominee under the child life plan is the child of life assured. The death benefit is paid to the child if he/she is above 18 years of age, in case the child is underage i.e below 18 years of age, the death benefit is paid to the guardian of the child.
2. Financial Protection
Child life insurance plans help you ensure financial protection of your child even in your absence. Child insurance plans offer the option to choose Waiver of Premium wherein, if the policyholder or the parent passes away, the future premiums get waived off and are paid by the insurance company itself, the nominee .i.e the child is paid with the sum assured at the time of plan maturity. The benefits receivable under the policy will help your child to achieve his/her goals and aspirations.
3. Waiver of Premium
Under child life plan the life assured is offered with waiver of premium benefit wherein all the future payable premiums gets waived off in case of life assured’s unforeseen demise. This benefit helps in ensuring policy continuance as premiums get waived off after the unforeseen demise of life assured and is paid by the insurance provider itself. The benefit amount under this benefit is payable at the time of plan maturity and the benefit amount can act as a financial resource for your child even in your absence which will help him/her to achieve their goals and aspirations.
4. Partial Withdrawal
Some child life plans allow partial withdrawals during the policy term which help the life assured to provide financial resources for their child’s expenses at different times of their life.
Under the child life plan you can choose to opt for additional coverages known as riders which will enhance the coverage of the base life insurance plan. Some common life insurance riders available under child life insurance plans are Accidental Death Benefit Rider, Accidental Total and Permanent Dismemberment Rider, Waiver of Premium Rider and Critical Illness Rider.
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