Why You Must Have A Child Insurance Plan.

Child life insurance is a form of permanent life insurance that insures the life of a minor. It is usually purchased to protect a family against the sudden and unexpected costs of a child’s funeral or burial and to secure inexpensive and guaranteed insurance for the lifetime of the child.It offers guaranteed growth of cash value, which some carriers allow to be withdrawn (collapsing the policy) when the child is in their early twenties.Child life insurance policies typically offer the owner the option to purchase, or in some cases obtain additional guaranteed insurance when the child reaches maturity.


Must Have A Child Insurance Plan.

The rising cost of education is troubling Indian parents. More than 60% of the respondents in an online survey by ET Wealth listed this as their biggest worry. This was followed by lack of knowledge, not saving enough and starting too late.
We hadn’t included the biggest worry-the risk of their own untimely death-as a choice. We should have. According to the National Crime Records Bureau statistics, an Indian dies in an accident every 90 seconds.
It’s a terrifying thought for any parent-leaving his family without adequate means to lead a comfortable life. The only way to get over this worry is to take a sizeable life insurance cover. Financial planners swear by term plans, arguing that these policies are the best way to cover the risk of early death. They certainly are because they offer a high cover at a low cost and give out a lump-sum amount to the nominee if the policyholder dies. But the policy ends right there.

On the other hand, a child insurance plan offers a lump-sum payment on the death of the policyholder, but the policy does not end. All future premiums are waived and the insurance company continues investing this money on behalf of the policyholder.
The child gets the money at specified intervals as planned under the policy. In this way, the parent ensures that his child’s needs are taken care of even if he is not around.
Almost all life insurance firms have child plans in their portfolio of offerings. Some of these are market-linked policies, which allow policyholders to invest in equities and debt, while others are traditional plans, which invest only in debt. In case of a life insurance policy, the premium paid for a child plan is eligible for tax deduction under Section 80C, while any income from the plan is tax-free under Section 10 (10D).

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Mera Insurance Wala

Mera Insurance Wala (MIW) is one of the pioneer Insurance Company offering wide range of insurance products according to the specific needs of the clients. Established in the year 2012.Be it advising on the right insurance product or identifying & managing the risks involved, We makes sure the investments are done wisely as per the interests..know more