Why Consider Purchasing Child Life Insurance Plan?
Published On Aug 24, 2021 1:00 PM By InsuranceDekho
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Being a parent comes with an important responsibility to financially support your child while fulfilling your child’s dreams and life goals. Most parents think that they have saved the money they might need to secure their financial future but when the time comes, the savings that they make might not be sufficient to provide their child with the right amount of financial support.
Some ways to invest properly and productively are mutual funds, public provident funds (PPFs), gold ETFs, stocks, fixed deposits, debt funds, and more. All these options require a parent or a guardian since all of these plans include participation. A child plan, however, offers facilities to take care of your child even in the event of your absence. This way the child will never be left helpless. The child will be able to avail the best of the educational facilities and have financial stability. These plans provide security to your child’s future dreams and goals too.
Importance of Child Life Insurance Plans
To understand what you are investing in and investing for, you just understand the benefits and the importance of child life insurance plans. To start a successful investment in your child’s future, read on!
Dual Benefits (Investment and Insurance)
A child life insurance policy serves as both an investment and an insurance policy for your child. It protects her at all times at her life's milestones by providing insurance coverage. The proceeds of the bond can be used for any financial purpose when it matures.
Child’s Educational Savings
The best present that parents can give their children is a decent education. Quality education comes at a cost. Extracurricular activities, field excursions, and other fees, in addition to the basic tuition, add up to a large amount. By making your portfolio inflation-proof, a market-linked investment plan can help you earn higher returns.
A kid insurance policy can be used as collateral for a loan because it has a Surrender Value. The loan amount can fluctuate depending on the value of the underlying fund. These plans can act as collateral assets while you need to take loans for their education or any major event as many lenders accept child life insurance plans as assets to provide loans.
Must read: Benefits of Waiver of Premium Rider in Child Education Plan
Waiver on Premium
A Waiver of Premium Rider is also provided with child insurance coverage. This ensures that, in the event of your death, all future premiums will be canceled, and the insurance company will pay the outstanding balance. So, regardless of what happens, your child is entitled to a lump-sum payment for the rest of his or her life.
To conclude, there are many benefits of investing in a child life insurance plan. They not only provide a long cover to your child but also provide security to your child’s dreams and life goals. Child plans offer both life insurance and investment opportunities. This policy allows the policyholder to protect their children's future while also building up an investment portfolio to help meet significant life milestones. Hence, one must opt for this plan.
When is the Right Time to Purchase a 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.