Eligibility Criteria to Purchase a Child Life Insurance Plan?

As a parent, you would want to provide your child with the best possible educational opportunities. This helps them to reach their long-term goals without difficulty. The rising costs of education are not a myth. They have become a key obstacle for parents in this pursuit. This results in critical instances for parents to plan ahead for their child's schooling and other major life phases. Since they want to provide their children with enough financial foundation to help them fulfill their goals in life on schedule and without financial constraints. 

You must invest in child plans and let them know what good and bad investments are, If you want your child to develop safe investment techniques and help them develop a habit of safe investing. There are various insurance companies that provide you with child plans with different benefits. Before picking a child plan to invest in, comparing all the different options and choosing what best suits your financial status is an essential step.

Eligibility Criteria For Purchasing a Child Life Insurance Plan

From company to company, the eligibility to buy a child plan varies. 18 to 21 years is the usual entry age of the parent or the guardian of the child to buy a child plan, and the maturity age can be up to 60 to 65 years.

Why Should You Invest in Child Plans?

You can consider investing in a child plan on the basis of the following benefits offered by the policy - 

• Education Fund

A child insurance plan's main goal is to protect your child's future. The monies acquired over time might be utilized for your child's higher education or for special occasions such as marriage. Higher education is becoming more expensive, and a kid plan can help fulfill these needs.

• Collateral Assets

The fundamental purpose of a child insurance plan is to safeguard your child's future. The money saved over time could be put toward your child's further education or a special occasion like a wedding. Higher education is growing more expensive, and a child plan can assist with meeting these requirements.

• Security After The Death Of The Parent

It is natural for a youngster to feel surprised and shattered if one or both parents pass away suddenly. If the policyholder dies within the policy term of the kid plan, the insurance company may offer a premium waiver rider. The plan, however, does not come to an end, and the policy does not expire.

In such instances, the kid is entitled to the lump sum payment provided when the child policy was purchased, without having to pay the remaining premium. The rider allows the insurance to continue without interruption or lapse, and the insurer is responsible for paying the remainder premium.

Conclusion

The eligibility criteria of a child plan are based on the age of the parent or the guardian of the child. The minimum and maximum entry ages are 18 and 21. The same for the maturity of the policy is 60 to 65 years.

Also read:

How to Plan for Your Child Education Fund?

Do I Need Life Insurance Plan For My Child?

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.