Frequently Asked Questions For Child Life Insurance Plans

Child plan can be used to create a corpus and provide financial security for your child. This type of life insurance plans help you build a corpus over a certain period of time which can help you fund your child’s higher education, dream marriage and dream venture. Child life insurance provides a death benefit in case of an unforeseen demise of the parent/life assured. Such life insurance policies provide an option to add waiver of premium rider to the policy which can be very useful under difficult circumstances such as unforeseen demise of the parent/life assured during the policy tenure. 

Frequently Asked Questions For Child Life Insurance Plans

Below mentioned are some frequently asked questions for child life insurance plans:

1. When Should I Start Investing in a Child Life Insurance Plan?

When it comes to investing in a child life insurance plan, the earlier, the better. It is good to start investing in a child life insurance plan as early as possible. This way you get the opportunity to create a larger corpus for a child's future financial requirements. Most child life insurance plans provide maturity benefits which can be utilised to fund your child’s future expenses.  

2. How to Determine the Coverage Amount/Sum Assured for a Child Life Insurance Plan?

Before purchasing a child life insurance plan you must consider your current lifestyle, financial liabilities, and future financial expenses of your child. Always consider a sum assured that will help your child fulfil his/her financial requirements even in your absence. 

3. What are Salient Features of a Child Life Insurance Plan?

Following are some salient features of a child life insurance plan:

• Helps in funding your child’s higher education
• Provides liquidity during medical emergency
• Can be a collateral for education loan
• Provides financial security to the child in case an unforeseen demise of the parent
• Flexibility to enhance the coverage of the policy by adding riders to the policy

4. What are the Advantages of Purchasing a Child Life Insurance Plan?

Following are benefits of purchasing a child life insurance plan:

• Death Benefit
• Maturity Benefit
• Partial Withdrawals
• Waiver of Premium Benefit
• Tax Benefits

5. Does a Child Life Insurance Plan Provide Partial Withdrawals?

Under a child life insurance plan partial withdrawals are allowed in case of any emergencies. A partial withdrawal facility can shield you against contingencies when there is immediate requirement of funds. Under a child life insurance you can make partial withdrawal to fulfil your child’s immediate financial expenses. 

6. Is Waiver of Premium Rider Necessary with a Child LIfe Insurance Plan?

It is not necessary to purchase a Waiver of Premium rider with a child life insurance policy but it is said that a waiver of premium rider is a good choice with a child life insurance plan because all future payable premiums gets waived off in case of an unforeseen demise of the life assured

7. What are the Exclusions of a Child Life Insurance Plan?

Below mentioned are the aspects which are not covered under a child life insurance plans:

• Self inflicted injuries or Suicide
• Participation in hazardous activities or sports
• Alcohol/Drugs Abuse
• Death due to driving under the influence of alcohol/drugs/other intoxicants
• Participation in unlawful activities

8. Can a Nominee be a Minor Under a Child Life Insurance Plan?

Yes, you can make a minor nominee under a child life insurance plan, the minor can be your own child. But once you make a minor nominee you might need an appointee who would receive the death benefit on the behalf of the minor nominee. 

Also read = Everything You Need To Know About HDFC SL YoungStar Super Premium 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.