THINGS TO CONSIDER WHILE BUYING A CHILD PLAN - INTRODUCTION
Nothing beats holding your newborn baby in your arms and admiring their innocence as a proud parent. Almost all parents intend to protect their newborn babies from harm. Assuring a financially secure future is an important part of this promise. Often, parents are concerned about their children's future education and are willing to compromise their own leisure expenses if necessary. This is where a child insurance policy comes in handy.
BE AWARE OF THE FACTORS TO CONSIDER WHEN BUYING A CHILD PLAN.
Life is full of ups n and downs, unexpected situations, and incidents. Purchasing a child insurance policy ensures that your children's future is financially secure regardless of life's unanticipated situations. Unsurprisingly, many parents invest in child insurance to meet the financial requirements of their children. The main reason for purchasing a child plan is to ensure that your children are financially secure even when you are not present. But do you know what to look for when purchasing a child insurance plan? If you don't have an answer to this, keep reading to learn about the things you should consider when purchasing a child plan.
EDUCATIONAL COST AND INFLATION RATE -
When calculating the sum assured, you must carefully study the estimated cost of your children's education in relation to the inflation rate. A BE degree, for example, currently costs between Rs. 12 lakhs and Rs. 15 lakhs in a premier university/institute, and the current inflation rate is 6.95 percent. With the current inflation rate in mind, you must calculate how much your children will require for their Engineering education 10-15 years from now.
PLAN TENURE -
It is very important to consider the policy's duration while purchasing a child insurance policy. Let us understand this in depth. Suppose your child is 9 years old, he or she will require at least 8 to 10 years to decide what field of education he or she wants to opt for. Then you'll need money to help him achieve his objectives and goals by providing financial assistance. Keeping this in mind, you'll need to pick a plan that has a minimum maturity time of 10 years. If you choose a longer -term plan, you may find yourself in a liquidity pinch since you will need money before the policy matures. As a result, deciding on the policy's term remains important.
PARTIAL WITHDRAWALS -
Consider what might happen if you needed money before the child insurance policy's maturity date. The partial withdrawal clause may come to your aid in certain situations. As a result, it's important to double-check whether the child insurance plan you're considering includes a partial withdrawal clause. We're confident you'll agree that being able to withdraw money at specified, regular intervals makes it easier to handle the ever-increasing educational costs of children.
RIDERS -
A rider is a benefit provided by life insurance companies to help policyholders supplement their current coverage. Adding a rider to your existing policy will cost you more. However, before you invest in riders, you should learn everything you can about them. Here are some of the most common riders included on popular child insurance policies:
WAIVER OF PREMIUM RIDER -
A considerable number of life insurance firms now provide an inbuilt premium rider in their child insurance policies. All outstanding premium payments are waived in the event of the policyholder's death, and the beneficiary is entitled to the benefits after the maturity date of the child insurance plan. It is recommended that you include the premium waiver rider in your child's insurance policy.
DEATH RIDER -
The beneficiary receives a lump sum payment from the insurer in the event of the insured's untimely death. The death rider ensures that the procedure does not become stalled due to unforeseen circumstances.
OTHER RIDERS -
With the popular child plans, a variety of different riders are available. Supplementary benefit, accident benefit, income benefit, and critical illness riders are among the most common. Different life insurance companies have different riders. When purchasing a child insurance plan, it makes sense for the proposers to get familiar with these riders.
CONCLUSION
In order to get the finest child insurance plan, different sites support to give you a hand and explain all your problems and concerns. It's a hassle-free, paperless, convenient, and seamless process. When you buy a policy online, you save time that would otherwise be spent visiting an insurance provider or seeking an insurance specialist. You can also get child plan brochures from the official website.
Apart from these factors, the financial condition of the family is also an important factor to consider when purchasing a child insurance plan. If you're thinking about buying a child plan, your family's condition will decide how much you'll need to put in. Also, before investing, be sure to check the company's claim payment percentage to guarantee that your money is safe and protected.
One of the nicest things you can give your newborn baby as responsible and proud parents is to extend a helping hand with complete child insurance coverage. Child insurance plans enable you to realize your ambition of ensuring that your kid's future is not jeopardized by unfortunate events. But, before you rush out and get a child plan, take a few moments to think about what we've just said. This will save you a lot of time and money while also ensuring that your child has the greatest insurance plan available.
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