Every parent would undoubtedly agree that parenthood is a full-time job packed with multiple responsibilities that have a direct impact on your child’s life. All of the efforts taken by parents in any situation are aimed at a single goal – giving them a comfortable life ahead. Financially, raising children can cost you a lot. From daily expenditure to bigger expenses like education fees, you have to be prepared every step of the way. With rising education costs, it would be best to invest in a child policy and eliminate any risk of struggling in times of need.
A child policy is a combined plan that offers both saving opportunities as well as and insurance cover to ensure a bright future for your child. In a child policy, you are required to pay premiums for a specified period of time. Upon maturity of the plan, you will receive a lump sum maturity benefit that can be used to pay off the education costs of your child. In case of any unfortunate events during the policy tenure, the nominee is given the lump sum life cover amount. While this is surely simple enough to understand, child policy plans have a lot of myths surrounding them that intimidate parents from investing in one.
So, here are some major myths vs reality points to keep in mind when investing in a child policy:
- Myth: Only The Child is Covered Under a Child Plan.
It is important to remember that not all child plans cover only the child. Many of them include your family as well, which are ultimately more beneficial so when looking for child policies, invest in one that covers both parents.
- Myth: Policy Automatically Expires if a Parent Dies.
The policy definitely does not expire if a parent dies. In many cases, a waiver of premium is offered by the insurance company to pay off any future premiums while also giving your child the benefits of the plan. This is to ensure the death of a parent does not affect their dreams.
- Myth: Child Plans are Not Sufficient to Cover Future Expenses.
Child plans are made with extreme research and detail put into coming up with the most beneficial plans, keeping factors such as inflation in mind. A child policy covers not only your child’s future education fees but also any other expenses that might crop up.
- Myth: You Only Get Payouts at the End of the Policy Tenure.
It is a very common belief that child policy funds get blocked and cannot be withdrawn unless the policy tenure has ended or you’re facing an emergency. This, however, is untrue. Child plans are flexible, and options such as market-linked plans allow you to withdraw after five policy years. You can also make withdrawals before your child has turned 18.
Clearing up these common myths takes a load of stress off every parent’s back, hopefully helping them see the multiple benefits of a child policy. Invest in one of the best plans by ICICI, a leading insurance company in India. They have a high claim settlement ratio, ensuring your money is safe even after years of investments.