Introduction
Child insurance plan refers to the financial product that includes both insurance (Provides financial protection) and investment (Builds wealth overtime) components. It provides financial security and helps to cover the future needs. In this post we are going to discuss some key characteristics of child life insurance plan.
Characteristics Or Features of Child Insurance Plan
Some of the major features of child life insurance plan can be highlighted as follows:
1. Includes Both Insurance And Investment
The main feature of child insurance is that it contains both investment and insurance components. It provides financial protection to the child if the parent passes away. It also helps to build wealth because premiums are invested in different instruments such as equity, balanced funds etc.
2. Affordable Premium
Because of different subsidies and schemes premium amount is lower is child insurance plans. Insurance premiums are lower than adult's life insurance plans because of young age and less health risks.
3. Tax Savings
Insurance premiums can be deducted from taxable income that helps to minimize the amount of tax to be paid. Therefore, it saves tax.
4. Death Benefit
Insurance companies provide death benefit to the family of insured child in case of death. This benefit can be used to meet funeral expenses.
5. Premium Waiver Benefit
Many insurers offers premium waiver benefit while selling child insurance policy. Premiums are waived off if the insured passes away or becomes disabled.
Also Read
Advantages and disadvantages of child life insurance
Key objectives of buying child life insurance
6. Loan Facility
Another notable feature of child insurance plan is that loan can be obtained on the basis of insured amount and cash value of the policy.
7. Fixed Premiums
Child insurance premiums are usually fixed and remain same for the entire duration of the policy .