A child plan is basically an insurance that ensures the financial security of the child. It is highly recommended that you compare online child plan in order to get the best child plan. A child plan can be of the following two types:
What is Rider Benefit
- Life insurance:- which is designed to secure the child’s financial future.
- Child health plan:- which is designed to provide for children and babies for all their health issues. As they have a weak immune system they are more prone to diseases than adults. As a result, the number of visits by children to the doctor is more. A child Health Insurance helps in paying for the treatment and Hospitalization fees of the child.
A Rider option is a provision in child insurance or child health plan that can be bought in addition to the basic policy, it is an additional service or option that is optional and may or may not be opted for when you buy child plan. To make long story short, Riders
in child Policy
lets the owner of the policy to make alterations relating to the contract’s terms and conditions, or its coverage. This extra option does not come free, has to be purchased separately when you get child plan, at an extra cost; even then it is a very good feature and should be a part of any child policy.
It is important to choose the rider carefully; it proves very helpful when a parent does not live the policy term. Riders are not complicated, but choosing the right one for your child is a daunting task. It is so because there is a wide range of choice on offer; each of the Insurer
will offer at least three different types of riders, and they will try their best to convince you to take as many as possible. But thanks to IRDA- Insurance Regulatory and Development Authority, it has recently enforced a rule to check insurance agents from selling riders without genuine need. IRDA emphasized that the Premium
for all riders combined should not go over 30 percent of the base child plan. Also, it has become mandatory to keep the tenure of the rider policy and the primary life insurance policy same. Some of the riders in child policy are as listed below:
- Term: Term riders are additional low-cost insurances added by Policyholder to the child policy. Under this rider, a certain percentage of the sum Assured is paid to the Beneficiary in the event of unfortunate demise of the policyholder during the term of the policy.
- Waiver of Premium: It is important to buy this rider when you buy child plan as it allows the Insured Claim for insurance if the owner of the child policy becomes disabled or dies suddenly; the Waiver of premium rider pays a certain amount into the plan to cover the cost of insurance.
- Accidental death benefit: If you buy a child plan and attach the accidental death rider, the child insurance policy pays an extra amount of insurance to the recipient, if the insured dies as a result of an Accident or mutilated in an accident.
- Critical illness: The Critical Illness rider attached to a child health insurance gives a benefit to the insured who is incapacitated by a critical illness. It is important to note which illnesses are covered. The rider summarizes the illnesses that are covered.
- Long term care rider: When you get a child plan and attach this type of rider, a payment is made by the insurance company for institutional or home care costs for the insured due to illness or injury.
So, without any second thought you can conclude that riders in child insurance policy
play a very important role in getting the best benefits, it is also advisable to look for online child plan as that gives you the higher chance of getting the best child plan.