Steps To Choose The Right Child Life Insurance Plan
Updated On Sep 19, 2021
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Every parent wishes the best for their child. From childhood, to education and the career of your child, you want to provide everything to your child, to have them fulfill their dreams and live a financially secure life. However, rising cost of education, cost of living and unpredictability of life makes this a difficult style. This is where a child life insurance plan can help you create a corpus to secure your child’s future.
Child life insurance plans not only provide life cover but they provide financial aid to your child in case of your sudden demise during the policy tenure. Such plans also let you build a corpus for your child’s future expenses. You can ensure that your child has financial resources for their medical, educational, marital, other expenses etc. with the help of a child life insurance plan.
Steps to Choose the Right Child Life Insurance Plan
Here is a brief guide which can help you choose the right child life insurance plan:
- Identify the Financial Requirements of Your Child: A child’s educational, health and marital expenses are three important aims that a parent wants to achieve by saving up their earnings. Education is a very important part of a child’s life. If your child wishes to go overseas for higher education or pursue it within the country, you need to estimate the funds that may be required and the time period over which the funds shall be accumulated. The same applies for other expenses of your child. Identifying your child’s financial requirements can help you choose the coverage amount which will help your child in difficult situations.
- Compare Different Child Life Insurance Plan: You should compare different child plans offered by different life insurance companies to narrow it down to one plan that fits your requirements and budget. If you have a risk appetite, you can choose a market linked plan which invests part of your premiums paid in market linked investment funds, if you have a low risk appetite you can consider a plan that provides guaranteed additions.
- Check if the Plan Offers Waiver of Premium Rider: It is said that waiver of premium rider is a good choice of add-on for a child life insurance, before purchasing a child life insurance plan, make sure the plan offers life cover and an option to add waiver of premium rider to the policy. Waiver of premium rider ensures policy continuance by waiving off all future payable premium in case of an untimely demise of the life assured during the policy term. This rider lets the child to avail benefit under the policy in case a parent passes away during the policy tenure by waiving off future payable premiums, which shall be paid by the insurance provider on behalf of the life assured that is the parent.
Understanding the unpredictability of life and expenses of a child you must consider purchasing a child life insurance policy. Before purchasing a child life insurance you must consider the above mentioned aspects which can help you purchase an ideal child life insurance plan.
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.