Most Common Child Life Insurance Queries: Answered!

A child life insurance policy is a combination of investment and life insurance which helps you ensure financial security of your child in case of your unforeseen demise. These plans can help you fund your child’s future expenses such as higher education, marriage expenses or funding your child’s dream job/business. Under this plan a death benefit is provided to the nominee/child in case of untimely demise of the parent/life assured during the policy tenure. These types of life insurance policy also provide a maturity benefit at the end of the policy term in case life assured is able to survive the entire policy tenure. 

It is very understandable that you may have some queries/doubts before purchasing a child life insurance policy.

Most Common Child Life Insurance Queries

Below mentioned are some most common queries that arise while purchasing a child life insurance policy:

1. What is Covered Under a Child Life Insurance Policy?

Child life insurance policy covers untimely demise of the life assured i.e. the parent during the policy tenure, given the policy is active. A death benefit is provided to the child/nominee in case of untimely demise of the parent/life assured during the policy tenure. In your absence, the child can fulfil his/her financial expenses. With the help of a child life insurance policy you can ensure your child has the opportunity to live a decent life which you would have provided to him/her. 

2. When to Start Investing in a Child Life Insurance Policy?

If you are thinking of investing in a child life insurance policy, you must start investing as early as possible. It is a good choice to start investing in child life insurance as early as possible. This way you can get an opportunity to create a large corpus which can help you fulfil your child’s future financial needs. 

3. What Rider is Suitable for a Child Life Insurance Policy?

Waiver of premium rider is considered a suitable rider for a child life insurance policy. It is not necessary to purchase it but once purchased it can be a good add-on feature for a child life insurance policy. This rider waives off all future payable premiums in case of an unforeseen demise of the life assured/parent during the policy tenure. This rider ensures policy continuance and ensures that the child is able to avail the benefits of the policy. 

4. How Can I Determine the Sum Assured for My Child Life Insurance Policy?

To determine the coverage amount/sum assured for a child life insurance policy you must consider your child’s future financial expenses such as educational expenses, daily expenses and also consider your current lifestyle, financial liabilities etc. before your purchase a child life insurance policy. It is always advised to choose a sum assured/coverage amount which shall be enough to cover your child’s future expenses. 

5. How Can a Child Life Insurance Policy be Beneficial?

Child life insurance policies can help provide sufficient funds for various milestones in your child’s life. These types of life insurance policy provide a death benefit in case of an untimely demise of the life assured which enables the child to maintain a healthy lifestyle and pursue his/her dreams in the absence of their parent. Child life insurance plans help build a corpus for your child’s future. Child life plans also provide an option of partial withdrawals in case of any financial emergency. 

To Conclude

Child life insurance policy can assist a person in creating a financially secure future for their child. This type of life insurance policy can help in funding a child’s educational expenses, extra curricular activities and any medical emergencies. 

Also read - Are Child Life Insurance Worth It?

3 Riders Which Are Best Suitable For A Child Life Insurance Policy

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.