Top 5 Questions Asked While Purchasing a Child Insurance Plan

Updated On Jul 12, 2021

Q1. Which Benefits are included in a Child Insurance Plan?
Q2. When Can One Withdraw from a Child Insurance Policy?
Q3. Are the Proceeds from the Child Plan Tax-Free?
Q4. How much does it Cost to buy a Child Policy?
Q5. Can I purchase a Health Insurance Policy for my Child Only?
Conclusion

Being a Parent it becomes an important task for you to create a safe and secured future for your child. There are Medical, Educational, and Marriage Expenses awaiting down the road for your children and by purchasing a Child Insurance Plan you will be able to cover all the expenses which are mentioned above. This will make sure that even when you are there with your child or in your absence your child's dreams and goals will not be compromised.

Q1. Which Benefits are included in a Child Insurance Plan?

There are several Key Benefits of the Child Insurance Plan as mentioned below-

Build a Corpus for the Future

A Child Insurance Plan helps you build a corpus and helps you save enough for the future. By paying all the premiums on time you can create an Investment that can help your child meet expenses related to Education, Marriage, or anything else.

Covers Medical Expenses

Medical Expenses cause a lot of Financial Stress. These days Medical Expenses are way above the roof. Whether it is related to a nominal fever or any other Critical Illness. A Child Insurance Plan also takes care of this, they have an option available for Partial Withdrawal. With these Withdrawals, you can pay for any Medical Expense related to a Hospital or Medical Bills.

Waiver of Premium Benefit

Death can put a very heavy toll on the family on an emotional and financial level. But with the option of Waiver of Premium in case of your sudden demise, your children will not have to carry an additional burden of paying the Premiums on top of other expenses. If the insured person dies in between the Policy Term the remaining premiums are waived off by the Insurance Company.

Additional Riders

Riders can be added to increase the cover of the Policy. A few examples of this are Critical Illness cover or Accidental Cover. This will provide a Comprehensive Cover for your Child from any uncertainty in life.

Acts as Collateral

These Policies can act as Collateral to take Loans to support your Child for Higher Studies. Not just for Higher Education but as well as any other child expense-related borrowing.

In this Article, We have prepared a list of top questions asked while purchasing a Child Insurance Policy.

Q2. When Can One Withdraw from a Child Insurance Policy?

The Withdrawal can be done after 5 Years from the initiation of the Policy and before the Policy Term.

Q3. Are the Proceeds from the Child Plan Tax-Free?

The Amount withdrawn from a Child Policy, the Death and Maturity Benefits are Tax-Free.

Q4. How much does it Cost to buy a Child Policy?

The Expense of purchasing a Child Policy depends on several factors such as the Term of the Policy, Age, Sum Assured, etc.

Q5. Can I purchase a Health Insurance Policy for my Child Only?

There are a few Child-only Policies where the guardian or the Parent is not covered. The only criteria are that the age of the Policyholder should be 18 years or below.

Conclusion

Now that you have the answers to the most common questions you can contact the Insurance Company to get in depth detail about the Child Insurance Plans they are offering. It is important to purchase a Child Insurance Policy because as a parent it becomes your responsibility to secure your Child's Future in the best way possible.