Friday, 22 April 2022

Reasons To Invest In A Child Insurance Plan

Child Insurance Plan - Why It's a Smart Investment

Every child has a potential, and every parent has a dream. To help them fulfil a child’s ambitions, one needs to be financially ready to power those dreams!

A Child Plan is an investment option, that empowers a child’s aspirations by providing the necessary financial support in realizing them. Under this policy, a lump sum or regular income is paid to support important events in your child’s life such as education, marriage, starting a career etc.

Why invest in a Child Plan?

Life cover –
Your Child plan acts as a life insurance cover for your child, where, in the event of your unfortunate demise, your child gets the policy benefits as envisaged.
Premium waiver –
In the event of the sudden demise of the parent who is insured, the premium waiver option in the policy gets activated and the payment of subsequent premiums will not be required to be paid by the surviving family. All child plans have this ‘premium waiver’ feature included. This ensures continuation of the policy, with the insurer taking over the responsibility to pay the balance premiums, as the child can continue to avail the policy benefits without the goal planned for being compromised.
Serves as a Collateral against Loan –
Most ‘Child plans’ offer the option to take a loan against the policy. In case of any financial emergency or need of liquidity you can avail loans using this policy.
Education –
Cost of education is rising year on year. Having said that, no compromises can be made when it comes to your child’s future goals and ambitions. Therefore, investing in a Child plan early will ensure that a sizeable corpus is available to the child to avail the best education from the finest universities in India or abroad.