What Are The Key Benefits To Be Considered While Buying Child Insurance?
Updated On Jun 28, 2021
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Almost all the parents plan to guard the future of their children and ensuring a financially secure future is a part of this promise. Parents are worried about their children's future from the time they are born due to inflating the cost of education. This is where the Child Insurance Plan takes place. The Child Insurance Plan helps in building up an investment corpus to help meet the major milestones in a child’s life.
Buying a perfect Child Insurance plan ensures that your kids are Financially protected against unwanted situations and events of life during the policy term. Large number of parents like you invest in Child Insurance Plans to make their child's future secure and to cater to every financial requirement of their child even in their absence. Availing a Child Plan has become necessary in response to present situations.
It is a tremendous task to choose one plan that is ideal for you and your children among the available options. As a parent you must select those plans who can provide you with the maximum number of benefits.
In this article, we will discuss some benefits that you should look at before purchasing a plan for your child's bright future.
Benefits To Be Consider Before Purchasing Child Plan
There are a wide array of benefits provided by the insurers so that you can live in a worry free manner for a long term. Some of the benefits are as follows:
Partial WithdrawalsA Child Plan should provide you with the benefit of partial withdrawals during the tenure depending on the conditions. So that you can withdraw a certain amount of money from your fund value to satisfy your problems such as medical treatment, accident, etc. This takes care of your child’s major milestones.
Waiver of PremiumChild Insurance Plan provides your child with a waiver of premium benefit in an unfortunate event so that your child does not need to be burdened with payments of the premiums as the company pays on your behalf and the policy continues to exist even in your absence.
Loyalty Addition and Wealth BoosterChild Plans may also offer you with benefits such as Loyalty Addition and Wealth Booster, to help you grow your money. Loyalty Addition is a bonus that provides you as a reward for being in a policy for a long period of time and sometimes it depends on the company's performance during the policy tenure.
Liquidity BenefitsChild Plans offers you the liquidity benefits in cash crunches so that you can raise funds for your child's immediate needs by taking a loan against your Child's policy.
Premium Payment ModesUnder Child Plans you have the flexibility to choose premium payments mode such as pay the entire premium at one time or pay regular premiums on an annual, half-yearly, quarterly, or monthly basis as per your finances.
Sum AssuredUnder this benefit your child will receive a sum in case of an unfortunate event. You can select the sum based on the amount that your child will need to complete their education and live without any financial hassles.
The above mentioned benefits you should consider before going for a particular plan. These are the most important benefits that the policy should provide for the betterment of your child's future. These Child Plans lets you create wealth for beating inflation, removing monetary limitations from your child’s objectives like going abroad for college education, marriage and so on.
Also Read: Ways To Save For Your Child’s Education
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.