What is Term Insurance?
When it comes to investment planning, prioritising your child's future takes precedence. This is because rising education costs, health care costs, and wedding costs are all key components of your financial plans. As a result, having a solid financial plan in place for your child is critical.
You've probably heard statements that buying an online term plans or regular plans is one of the preferred approaches to protect your nominees against the financial uncertainties arising out of the possibility of your dying young. They most certainly are, as they offer a high level of coverage at a reasonable cost, as well as a lump sum payment in the event of the policyholder's premature death during policy tenure. The term policy then comes to an end.
What is the Child Policy?
A child plan pays out a lump sum after the policyholder passes away, but it does not end there. All future premiums are waived, and the insurance provider manages the investments on behalf of the policyholder, depending on the terms and conditions of the policy. When you are not present, a child plan will assist your kid's ambitions, from higher education to wedding preparation. It will act as a "financial parent" for your child when he or she is most in need.
Features of Child Plans
In child plans, you have the option of paying your premium for a limited period or on a regular basis. The amount will be determined by the maturity and amount assured that you choose.
• Amount guaranteed
Your child insurance plan may be able to offer a lump-sum payout in the event of the policyholder's untimely death. After that, the insurer continues to pay the premium on the insurer's behalf until the tenure ends.
Child plans are often available between the ages of 0 and 21. However, some plans have a greater upper age limit. Child plans last from the time the child is born until he or she reaches a certain age.
• Benefits on both sides
With a child plan, you can get both insurance and a savings. All of this is contained under a single policy. It allows you to save money while also protecting you financially.
• Partial Withdrawals are permitted.
You can make partial withdrawals from a child plan. This ensures that your financial needs are met in the event of an emergency. You can also use this money to pay off any other debts you may have.