Life insurance for children - You must have it!

Life insurance for children - You must have it!

In today's competitive world, providing the best education for children has become the top priority for all parents. To provide the highest quality education possible, parents must spend large amounts on the education rate.

Factors to consider when taking a child insurance policy:

1) Make a rough estimate of the funds you need for early childhood education or marriage. With this information at hand, you can correctly decide the required regular premium allowance and the duration of your child's life insurance.
2) Find out about additional benefits such as health insurance, accident coverage, etc.
Compare the annual premium charged and the rebates offered by the various Indian child insurance plans of different insurance companies.
3) Be sure to secure your life instead of the children. In addition, it is beneficial for an insurance policy that has an integrated clause on the exemption of future premiums in case of death of the insured (the father). This will ensure that the policy continues regardless of what and your child receives a sum insured at expiration.
4) Check the past performance record of the company from which you are purchasing child insurance.
It is always advisable to buy the policy on behalf of the father instead of the child since the child in any way does not have dependents. Even so, if you plan on taking a policy on behalf of the child, make sure it is a premium exemption policy in case of the death of the father. In this way, your child will not assume the burden of regular premium payments and will continue to reap the benefits of the life insurance policy.
5) Life insurance policies generally attract tax benefits. Find out if the policy you are considering has such advantages.

Benefits of a child life insurance plan :

• Due to competitive prices, child insurance plans are no longer affordable.
• These plans also give you the flexibility to choose according to your financial status and perceived monetary objectives. The premium rate can also be negotiated according to your interest.
• After the expiration period, the insured amount and the guaranteed participation amount are delivered to the parent or guardian. In case of premature death of the father, the child is entitled to all the benefits of the plan (if the annex of the premium exemption is attached to the policy).
• Most insurance companies in India have a built-in premium exemption feature. Maintain your current policy even if some of the premiums are not paid due to various reasons. In the event that your insurance company does not offer this function, it is recommended that you take a separate annex for it.
• The income tax benefits that may be used include an exemption in the expiration/death claim procedures under Section 10 (10D) and the deduction of income for the payment of the life insurance premium according to Sec. 80 (C).

Child insurance is a fantastic financial planning tool for early childhood education/marriage/ unforeseen expenses. It helps meet the child's monetary needs and provides security in the form of a life insurance policy.

There are many life insurance companies in India. These life insurance companies offer different types of life insurance policies. For planning financial investment, most people prefer ULIP plans and ULIP plans are better because they combine a regular insurance policy with early childhood education, pension plan, and other benefits.