Key Features of A Child Plan

A life insurance plan for a child or a Child Plan is insurance as well as an investment avenue that greatly helps to serve the financial needs of your children. Not only does it payout important benefits, but it also lets policyholders withdraw from their savings corpus, as and when needed. A Child Plan is a good insurance option to help your child face every milestone in their life.

With a Child Plan, not only are you saving up a regular sum, but you can also grow your wealth. At the same time, you can access your funds. 

Features of a Child Plan

Take a look at the features of a child plan to gauge how it can provide for your child.

• Insurance as well as Investment

With a Child Plan, you can avail yourself of the benefits of insurance while investing your current earnings. Therefore, as your wealth corpus grows, you get protective covers for your child. This will only help provide for your child's growing financial needs later on.

• Death Benefit

A Death Benefit is a very helpful feature as it ensures protection for your child even in your absence. A death benefit is paid out if the policyholder dies before the end of the policy term and given that all premiums till that point have been fulfilled. A Child Plan, therefore, ensures your child does not have to face any sudden financial burden.

• Maturity Benefit

Even when the policy term is over, a Child Plan makes sure you have sufficient returns from your savings so that you can provide for your children. The Maturity Benefit is paid out at the end of the policy term. If your plan has a Premium Waiver feature, your child can keep the plan active (for the Maturity Benefit and the protective cover) even after your death. With a Premium Waiver, they will not have to pay the remaining premiums after your death. 

Endnotes

A life insurance plan for a child helps provide for your child's education, especially higher education expenses, other costs regarding extra-curricular activities, and more. It also helps you grow your wealth so that your child has enough financial security to face inflation. Therefore, a child life insurance plan works to protect and secure your child at every stage of their life.

Also read 

Top Reasons To Buy A Child Insurance Plan

How To Compare Child Life Insurance Plans Online?

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.