Child insurance is a utilitarian blend of insurance and investment in which you get expected returns as well as you secure your child's future. In spite of this, many times the question that comes in mind is- Is it worth putting funds in child insurance?
Insurance policies for kids are definitely worth investing as there are numerous advantages one gets through this instrument. Your goals like your child's marriage, higher studies and a dream house for him are defined by you in monetary terms. Keeping that requirement in mind, you can invest and plan your withdrawal. Besides, there are many more good points for which you should buy child plan.
1. Child insurance comes with the option or you can attach the rider of the Waiver of Premium to the basic Policy in which, when premiums are not paid due to inability or death of parent, insurance company waives off all the future premiums and provides the sum Assured at the parent's death or at the Maturity of the policy as per the terms mentioned in the policy.
2. Since keeping good health is significant too, so many insurance companies have come up with child Health Insurance as one of the features of child policy. And, no need for separate child health plans arise as same policy commits to lifetime health coverage.
3. A rider that provides for loss of income in case of parent's demise or inability to earn is outlined as the biggest advantage for which many parents want to get child plans.
4. Another benefit derived is flexibility to withdraw the sum Insured amount. Taking the child's future into consideration, insurers have given the liberty to parents to choose the date ranges at which the child gets the portions of total sum assured.
5. There is an additional benefit to those who invest in unit linked child plans. Comprising of various market-linked financial instruments, ulips generate dividends from time to time which are added to the sum insured amount. This benefit cannot be extracted out of the traditional child plan in which only fixed assured return is promised.
You as a parent need to remember is that whether online child plans or regular ones, they are profitable only if bought at the right time. Also, given the multiple options in insurance policies for children, you should look through the repercussions attached to each plan in terms of whether the sum insured would be sufficient or not. Do not forget to weigh their good points against the limitations hooked to them. When planning to buy one, compare child plans in advance and tally their benefits with your requirement in order to make intelligent decisions.
Since the word future is attached to uncertainties, the investment you make for your child should be risk-proof. And, insurance policies for kids have this element in them that fulfills all the requirements and makes child insurance worth investing.