Why Are Child Protection Plans More Important Than You Think?
Updated On Sep 20, 2021
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Child protection plans are the same as normal life insurance policies. The main difference is that these plans are specifically tailored to meet your child's financial needs in the future. The premiums for these plans are invested in various investment assets that you select. If the policyholder dies, the sum guaranteed or death benefit is paid to the child named as the nominee of the life insurance policy, just like in a conventional life insurance policy. You also have the option of selecting a maturity benefit and a maturity time. Money from the death benefit or the maturity benefit helps to ensure your child's future even if you are not present.
Advantages of Child Protection Plans
The aim of your life as a parent is to ensure that your child has enough financial resources. Your infant will not be a baby forever; a child develops, and you must guarantee that your youngster has financial resources when they are most required. Some of the reasons why investing in a kid plan are crucial are listed below.
1. Unexpected Parental Death
Death is unforeseeable, and it will never be declared. Kid insurance plans have the option of Waiver of Premium, which means that if the policyholder or parent dies, the insurance company will pay the future premiums (future premiums are waived off), and the nominee, i.e. the child would receive the sum promised. You can select between a death benefit and a maturity benefit in the kid plans. The advantages provided by the policy will assist your youngster in achieving his or her objectives and dreams.
2. Urgent Medical Treatment Funding
If your kid becomes ill or needs to be hospitalized as a result of severe injuries caused by an accident or another medical condition, you can withdraw money if this occurs within the policy's terms. That is, amid such critical medical situations, you can partially withdraw from your child's medical care.
3. Education Funding for Children
Education is now ten times more expensive than it was previously. As a parent, you want your child to have a good education and to be successful in life. Some parents take out loans and go above and above to provide for their children's education. If the policyholder elects to receive the maturity benefit, the lump sum amount can be utilized to fund their child's further education. If you are concerned about your child's education, a child plan is an ideal plan to invest in.
A parent's first and most essential goal is to ensure his or her child's future. When you buy a kid’s plan, you are investing in his or her future. You may ensure that your child has adequate financial means to fulfill his goals with or without your presence by investing in child plans. When the money is returned, it can be used for a variety of purposes, including your kid's education, marriage, emergency medical care, or to pay off debts so that your child is not financially burdened.
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.