Importance Of Having A Child Insurance Plan
Table of Contents
Child life insurance plans are known for providing dual benefits such as life insurance cover and investment. Parents can purchase a child life insurance plan for their child when the child is as young as 30 days. This plan is a long-term investment option that helps you grow corpus for a financially secured future for your child. This type of life insurance plans provide maturity benefit in case the life assured (i.e. the parent) survives the entire policy term and partial withdrawals are also allowed under this type of plan.
Below mentioned are some reasons that justify the importance of having a child life insurance plan.
Importance Of Having A Child Insurance Plan
Following are some reasons that justify the importance of purchasing a child life insurance plan:
- Funding Child’s Education: Child plans can help you invest your money and grow your corpus to fund your child’s higher education. Higher education abroad can be very expensive, with the help of child life insurance plans you can create a corpus and provide for your child’s education. You can fund your child’s higher education with the help of maturity benefit that shall be provided to you at the time of plan maturity, child life insurance also allows partial withdrawals, so you withdraw some amount during the policy term if required.
- Funding Medical Emergencies: In case your child has to be hospitalized due a medical condition, with the help of a child life insurance plan you can fund for such medical emergencies. The partial withdrawal facility under a child life insurance plan can help you fund for medical emergencies, you can withdraw a certain amount before the maturity of the child life insurance policy.
- Financial Security for your Child: Child life insurance plans help you provide financial security for your child. In case of your unforeseen demise during the policy tenure, the death benefit shall be provided to the child, in case the child is a minor then the death benefit shall be provided to the appointee. The sum assured on the demise of the parent can ensure the financial security of the child in their parent’s absence.
- Partial Withdrawals: Child life insurance plan allows partial withdrawals, which help you to fund your child’s extra curricular activities such as singing, dancing, gym etc. This way you can nurture your child’s talent. You can withdraw a certain amount before the maturity of the child life insurance plan.
Conclusion
Child life insurance plans can help you create a financially stable future for your child, this type of plan can help you fund your child’s education, extra curricular activities, medical emergencies. This plan can be very helpful in case of an unforeseen demise of the parent because it provides financial support to the child in case of an unfortunate demise of the parent during the policy term. A parent must buy a child life insurance plan to provide for their child’s expenses.
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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.
