Myth 1: Only covers children
Any insurance plan covers the income-earner, including kid insurance. The policy assures a child’s goals and aspirations are never dashed, even without a working parent.
You can also use it for wealth accumulation and retirement. In such cases, your policy will benefit your surviving partner. The policy always covers the buying parent.
Myth #2: Only helpful for higher education
The money is yours to spend. None. Most parents acquire the greatest child education plan to fund their child’s higher education. When your child turns 18, you receive a lump sum. This is when he/she starts college.
Professional degrees and worldwide education are more expensive than schools, necessitating a long-term commitment. You can utilise the money towards your child’s hobbies, business ideas, or marriage.
Myth #3: Policy ends when policyholder dies
You decide. If you want the plan to continue and accomplish the financial target, select the option at purchase. If you choose this option, also termed “Premium Protection,” the insurer will continue to invest in the insurance.
Thus, if the parent (policyholder) dies prematurely, the family gets the Sum Assured and the policy continues. Future premiums are cancelled. At policy’s end, family gets fund value.
Myth #4: Inflation may prevent it from covering future education costs.
Child plans offer equity fund investments. Long-term equity investing beats inflation. To grow safely, you need two things:
1. Invest automatically
2. Switch to a safer fund towards plan’s end
Some of the best child plans, like Invest 4G from Canara HSBC Oriental Bank of Commerce Life Insurance, offer both possibilities and others to help your portfolio develop.
As the policy matures, a safety switch parks funds in bonds, G-secs, etc. This careful preparation defeats inflation and grows your money over time.
Myth #5: Only lump-sum death benefits are provided
Even after a parent’s unexpected death, milestone-based withdrawals are permissible. After death, the Sum Assured is paid. The family’s future premiums are waived. End of term, family gets fund value.
Myth #6: Policies often reject claims
Canara HSBC Oriental Bank of Commerce Life Insurance has a 97.1% settlement rate. Before buying kid life insurance in India, check settlement ratios, customer service reviews, and deadlines.
Myth #7: Policy terms are confusing
Your insurance expert will gladly explain the policy’s features and benefits if you require clarification. For more help, contact your local branch or customer service.
Myth #8: Benefits are only available at plan’s end
CHOOSE. Milestone-based payouts or partial withdrawals are options (subject to the availability of some minimum defined fund value). Canara HSBC Oriental Bank of Commerce Life Insurance offers the best coverage for child education, Money Back Advantage Plan. You may have intended to upgrade your automobile in five years or take a dream vacation in seven. The Money Back Advantage Plan pays out a percentage of the sum assured at set intervals.
Myth #9: Only for paying for school
There’s no condition. You can sponsor your child’s business or pay for his fitness training. A kid insurance plan is related with education since the investment beats inflation in the long term, offers corpus fund in case of parent’s death, and continues support until policy conclusion.
10th Myth: Child Plans Lack liquidity
Child plans have flexible withdrawals. You can withdraw the child plan money after five years. This lock-in time is required by regulators due to the tax-saving plan.
You can choose periodic cash inflows or a lumpsum at the end of the payment term. Usually when a youngster turns 18 or attends college. In Canara HSBC Oriental Bank of Commerce Life Insurance’s Invest 4G Plan, if your child is 5 years old, you can pay premiums for 10 policy years, until your child becomes 15. You can choose to receive annual payments to assist finance his/her education starting at age 18.