The Most Important Plan of All Investment Options: Child insurance
Published On Jun 21, 2021 10:00 AM By InsuranceDekho
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Investing in a child plan broadens the way of the future financial landscape of your child by building up an investment corpus to help you meet the future financial obligations in a hiccup-free manner. Under child plans, the parent is the policyholder and the child is listed as a beneficiary of the plan. These plans also provide a life cover which supports when in time of untimely demise of the policyholder.
This article will list the benefits of investing in a child plan and why it is a favorable choice among parents to provide a plan bundled with benefits, packed with a sense of security.
Reasons Why Child Plan Is The Most Important Plan Out of All Investment Options
The following factors will help you understand the benefits that can be unlocked by investing in a child insurance plan.
1. Covers Education Cost
The foremost reason for parents investing in a child insurance plan can often be narrowed down to building a corpus for academic purposes. Under Child Insurance Plans, the cost of education can be fully covered if you start investing early on. The premiums paid by the policyholder will help build a corpus to accessed in the future for the financial necessities of the child
2. Availability of Partial Withdrawals
Under child insurance, you can utilise the option of partial withdrawal to draw out money during the policy term. Periodic payouts enable you to support your child financially even during the policy term, upgrading itself to a plan that is beneficial to invest in.
3. Collateral For Loans
In case of an urgent requirement of money, a loan can be processed against child plans. It is a viable option accepted by the banks and can help overcome a lump in your child's financial future.
4. Availability of Premium Waiver
The premium waiver benefit activates in case of untimely demise of the policyholder and states that sum assured will be released to the beneficiary, and the future premium installments will be waived by the company. It extends protection from financial and income loss, and the policy remains intact till fruition
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The motives to invest in a child plan may vary but the primary reason still remains intact - providing financial security to your child. While providing security and making sure that your child's future strides effortlessly, there's also numerous benefits that can be availed with it, thereby, making it a perfect choice for the parents.
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.