Reasons Why You Must Invest In A Child Life Insurance Plan
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When it comes to providing a financially secured future for a child, parents go above and beyond to ensure a bright future for their children. However, inflation and growing day-to-day expenses can come in between financial planning. Child life insurance plans can help parents create corpus to fund future expenses of their child. A child life insurance policy combines the benefits of a life insurance and an investment tool. It provides financial aid at different stages of your child’s important milestones of life. The parent is life assured under the child life insurance policy and the child is the beneficiary. In case of an unforeseen demise of the life assured/parent during the policy tenure, the child/nominee will receive the death benefit which will help the child to fulfil his/her expenses even in the absence of the parent.
Reasons Why You Must Invest In A Child Life Insurance Plan
Every parent should purchase the best child life insurance that will provide financial aid to their child in difficult times. Below mentioned are some reasons why you should consider investing in a child life insurance plan:
- Fund Child’s Educational Expenses: Child life insurance plans can help you create a corpus for your child’s higher education. Education plays an important and crucial role in a child’s life. Having a child life insurance plan is essential nowadays if a parent does not want to compromise with the quality of the education that they want to provide their child with. Child plans are a great way to create a corpus to fund your child’s higher education or even send your child abroad for education.
- Untimely Demise of the Parent: Life can be very unpredictable, as a parent you would want to keep your child financially protected even if you pass away. Child life insurance policy provides financial protection to your child in case of your untimely demise during the policy tenure. Under a child life insurance policy, the parent is the life assured and the child is the beneficiary, who shall receive the death benefit in case of an unforeseen demise of the parent. The death benefit can help the child to fulfill his/her expenses.
- Partial Withdrawals: Under child life insurance policy partial withdrawals are allowed which helps you to fund medical emergencies or extracurricular activities of your child. In case of a medical emergency where the child needs to undergo a surgery or treatment, then the parent can make partial withdrawals to fund the medical treatment of their child.
- Policy Continuance: There is a unique benefit of purchasing a child life insurance policy with waiver of premium rider. This ensures policy continuance. If you choose to purchase a child life insurance policy with a waiver of premium rider, all future payable premiums shall be waived off, in case of an unforeseen demise of the parent i.e. the life assured, resulting in policy continuance allowing the child to avail the benefits under the policy.
- Alternative of Collateral: Child life insurance policy can act as a collateral. A parent can easily utilize a child life insurance policy to take an education loan for their child.
To Conclude
Child life insurance policies are a great way to create financial security for your child. These plans help you build a corpus to fund your child’s future or immediate expenses.
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.
