5 Common Features of Child Life Insurance Plans
If you truly care about the future of your children, then you can’t afford to get them the best child life insurance plans.
The essence of having Child Plans is for parents to be able to meet the financial future requirements of their children whether they are alive or dead.
Child Plans can come in the form of either insurance or any other form of investment opportunity.
Comprehensive child plans will pay you a huge amount of money when your policy matures. Other amazing benefits that come alongside your child’s plans are coverage for expenses such as, child’s school fees, tuition fees, and marriage expenses.
Before you purchase any plan for your child, do well to study the different types of Child Life Insurance Plans and their amazing features.
Top Features of Child Life Insurance Plans
You will never go wrong when you compare different child life insurance policies as offered by different insurers. This will help you save money and get the best deal for you for your money.
You can compare child insurance plans online from the comfort of your home or the phone by searching for the best life insurance companies near you.
But before you make that call or open a new tab to search for a reliable insurer near you, we would advise you to check out these features of a child life insurance plan so that you will be able to make an informed decision.
Here are the common features of child life insurance plans that make it beneficial to both parents and the child alike:
1. You are given the privilege to invest for the long-term
Child life insurance plans offer both short-term and long-term investment opportunities. The option you decide to go for is predominantly your prerogative.
Seeing that a long-term investment plan will fetch your child more financial gains in the future when it’s mature for payout, we would advise you to go for it.
2. Child life insurance plans will ensure that the goals of your child are realized
When you get a life insurance policy for your child, it helps to secure their future even if something happens and you are no longer there.
We hate to talk about death but it does happen. But the question is, what will be the fate of your child should you die today?
This is where a child insurance plan comes in by making sure that your child will continue to get the needed support through their higher education and other necessary expenses.
Beyond providing a life insurance payout after the death of the insured, the investment will continue to yield interest until the maturity date.
3. Liberty to do a partial withdrawal when a need arises
Before purchasing an affordable child life insurance plan from any insurance provider near you, it’s important you find out if they allow partial withdrawal.
Most Child Life Insurance Plans allow partial withdrawal only after your child has reached the age of 18.
How does a partial withdrawal facility work in child insurance plans? It works mainly in a Unit Linked Insurance Plan (ULIP) which is a combination of insurance and an investment opportunity.
There’s no limit to how much you can withdraw as the policyholder as long as you reserve enough funds to take care of the cost of your ULIP plan. However, most insurance companies have a withdrawal limit that can make them terminate your policy if you exceed it regardless of whether you bought your policy online or offline.
If you are considering getting a Unit Linked Insurance Plan (ULIP) from an insurer near you, please, don’t forget to find out what their withdrawal limit is no matter how cheap their premium is.
4. Child plans will offer you high return on investment
Different types of child plans offer different returns. These returns also differ from one insurer to another.
Before purchasing a plan from any insurer, no matter how irresistible their agent seems to be, always use a child plan calculator to know what you should invest and what you expect to get in return to be sure it’s worth it.
Child Plan returns can be as high as 12%, which is higher than the long-term rate of inflation in the United States.
5. You have the privilege to choose from several funding options
Child life insurance plans have a combination of insurance and investment opportunity for the sole purpose of securing the future of a child, especially their education and marriage expenses.
When you purchase child plans, you are given the freedom to select from a variety of fund options such as money market, equity, debt and so on based on what you need. You have the option to switch between funds after a set period of time. This process is called fund switching.
What is fund switching? Fund switching is an option given to policyholders of ULIPs to move their investments from one fund to another, within one plan as a way of making quality investment decisions.
Different Types of Child Life Insurance Plans
Knowing the life insurance policy that is good for your child is very important. That’s why we want to show you the different child insurance plans below.
- Unit Linked Insurance Plans
- Traditional Endowment Plans
- Single-Premium Child Plan
- Regular Premium Child Plan