What is child insurance and how does it work?
The birth of a child is the most beautiful and surreal feeling in the world. Your entire day will revolve around them and their needs. As parents, you always want to provide them with the best education and other extracurriculars which will help in shaping their future. With the rising cost of education, you must plan your finances properly so that you can give wings to the dreams of your kid. In the next few minutes you spend reading this article, you will understand the importance of purchasing child insurance and how it works.
What is a child insurance plan?
A child insurance plan helps parents to save money and plan their finances to meet the educational, vocational and marriage expenses of their kids. In simple words, it helps to secure the future of your child until he or she becomes financially independent. If you or your partner passes away, your child’s education will not be interrupted since the money from the insurance plan will be utilised.
When should I buy a child insurance plan?
The best time to purchase a child insurance plan is before your child turns 13 or 15. This will give you enough time to save for all their big life events. The sooner you begin, the more you will be able to save for your child’s education and other goals. A substantial sum will be gathered over time, providing your child with a secure financial future.
There are plenty of child plans available in the market. The simplest plan requires you to pay a minimum premium payment every month or quarterly and you will redeem the returns which are almost 5 times higher than what you invested initially. This fund can help you cover the costs of higher education and also Masters in a foreign country.
A few insurance plans also offer premium waiver options. In this plan, in the event of the parent’s death, the insurance provider will continue to pay the child’s insurance premiums until the term ends. This is a fantastic option because even if you are unable to make all of your premium payments for the duration of the plan, the insurance company will do it on your behalf, guaranteeing that your child’s coverage is maintained.
Educate yourself about the various benefits offered by different plans before you zero upon an insurance policy for your child.
One Step Further
Every parent wants to make their child’s future happy and secure. As much as you spend time choosing the right insurance policy that covers your child’s needs and protects them, it is also important to e-Insure your policy documents.
e-Insurance allows multiple policy viewing, safety, easy tracking and monitoring, paperless processes, reduced risk of fraudulent acts, effortless premium payments and easy accessibility anytime, anywhere.
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Creating an e-Insurance account takes just a few minutes but comes with lifelong benefits.
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