5 Most Frequently Asked Question for Child Life Insurance Plans

A child plan is a life insurance plan that is specifically designed to provide a child with the financial support they need to fulfill their needs and meet their necessities.  These plans provide security to your child and also their future goals. They ensure that the child is provided with maximum facilities while seeking help to fulfill their goals. They act as collateral assets and provide medical support by providing a percentage of the medical bills if your child meets with an accident. These plans do not end when the parent or the guardian passes away even though they require participation.

A traditional plan, which is a long-term plan with premiums payable for a longer or restricted duration, can be used for a child insurance plan. The child will receive a predetermined fixed amount when the plan matures. Because of the premium waiver feature, if the life assured dies, the child receives thdeath benefits immediately and the policy continues till maturity. ULIPs are another sort of child insurance plan.

5 Most Frequently Asked Question for Child Life Insurance Plans

The following is a list of frequently asked questions about child insurance coverage:

1. What am I Saving For?

Child plans help you to save for the future expenses of the child. They help the parent or the guardian save for the child’s educational expenses or their marriage or any other predefined goals they have for their child. You can save for their higher education so that if the child decides to study abroad, you can comfortably let them study and give them the best of the education there is.

2. When Should I Start Investing?

Planning ahead helps you to invest over a longer period of time, allowing you to steadily increase your money. It comes before choosing a plan that fosters long-term investment.

3. What Will Be The Plan’s Tenure?

Your policy's maturity period is usually determined by your child's current age. If your child is now six years old, he or she will be at college in eleven or twelve years. As a result, you'll need to choose a child education plan with a minimum maturity period of 10-12 years.

4. Does The Plan Include Premium Waiver?

A premium waiver is included in most child plans, allowing the policy beneficiary to continue to benefit from the plan after it matures. All existing premium payments are waived in the event of the policyholder's death, and the nominee receives an ensured sum at maturity.

5. Does The Plan Offer a Bonus?

According to the terms and circumstances of your plan, you may be eligible for bonuses. Bonuses begin to accrue after the first year, and they help to maximise the fund. There are two types of reversionary bonuses, namely, simple reversionary and compound reversionary. A monetary incentive and a terminal bonus may be included in some programmes.

Conclusion

In conclusion, child plans are very safe and effective to be able to provide a child with all the necessities. They are most effective when you start planning for them early. The plan’s tenure depends on your child’s age. Most child plans include premium waivers. Bonuses are also included in most of the child plans. 

You may also like to read - What Are The Factors To Be Considered While Purchasing Child Life Insurance?

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.