Children in the family are as important as any other member and thus it becomes critical to ensure their financial security. Different insurance companies are providing insurance plans to help children make their dreams a reality. Learn about the available insurance plan benefits and choose the most suitable insurance plan for your child.
Every parent wants their child to better in life and they try doing everything to ensure the same. Along with providing a good lifestyle while growing, they try to ensure that their future is equally secure should the unthinkable happens. Life insurance policies for children are designed to provide the required financial security to the kids that are vital for a successful parenting. Every child has their own dream and the parents are supposed to help their kids realizing their dreams in an easy way. Considering the rising cost of education and the uncertainty of life, it becomes vital to have a financial security to realize the plans even in the odd situations.
There are insurance providers offering dedicated life insurance quotes for children that cover them for accidents and injuries in future. That means if your child gets injured any time after receiving an insurance, the insurance provider will pay for the treatment expenses. Generally, it’s not considered necessary to have an insurance plan for the child in the family, but this is very important as you never know when what can happen tomorrow. It has been found that older parents or grandparents in the family buy a life insurance plan for them as they understand the importance of having a life insurance policy in place. Also, there are plans that take care of child’s educational expenses in case the parent passes away. There are multiple benefits that a child can receive from a life insurance policy that we are going to mention below.
Receiving A Planned Corpus
Under a cheap life insurance plan for children, you will receive a planned corpus as the plan matures. This corpus ensures that your child’s education will never get interrupted due to lack of money as the insurance provider will provide financial assistance in such instances. Moreover, it saves the insured from unnecessary complications while going for a claim.
Securing the Well-Being
When properly structured, these insurance policies ensure the well-being of the children in the families and lessen the financial burden on the family to take care of educational as well as medical expenses. Through their various plans, several companies provide immediate compensation to the beneficiary in the event of loss of income. Some companies provide an accumulated cash amount equal to the life cover to the beneficiary in the event of the parent meeting an accident or passing away. Generally, the life cover is at least 105% of the premiums paid till date but insurance buyers aging 45 or more have a unique option to choose the life cover seven times bigger of the annualized premium. All future insurance premiums are waived off and are fully paid by the insurance provider. Moreover, the policy remains in effect without paying any single premium and the beneficiary will receive the fund value as the policy matures. This fund value is calculated as the unit price on the date of maturity multiplied by the number of units.
There are insurance policies that provide risk-return preference in the same. That means you can invest a portion of the premiums into the market and can receive attractive returns on the same. Insurance companies have a group of experienced professionals that advise where to invest the money that can receive more and more benefits. This can provide an additional income other than the promised accumulated cash amount help your child fly higher to realize their dreams. Moreover, some companies allow you to add a surplus amount to the policy to further increase the benefits. However, it’s not applicable in the last five years of the policy.
Flexible Premium Payment Period
Most of the insurance companies take care of insured’s comfort and provide different options to help them pay their premiums. They are providing flexible premium periods to choose when the customers feel more comfortable to make the premium payments. Insured can choose whether they want to make the premium payments monthly, half-yearly or annually. You can get in touch with an insurance expert to understand the various policy details and receive top life insurance policy quotes for the same. Moreover, they can choose a suitable premium payment period such as a 10-year insurance policy with a premium payment period of 5 years or a 25-year insurance policy with a premium payment period of 10 years. Whenever you complete the 10th, 15th or 20th year of the policy, the companies reward you with their loyalty benefits. This benefit is calculated as 2 percent of fund value of current added with the fund value of previous year divided by two. Moreover, these policies enable you to receive tax benefits on the premiums you pay and help you save big every year.
Anil Kumar is the owner of Optinsure.com and has been providing insurance-related support and services to help customers make their most crucial financial decisions.