Monday, 1 April 2013

Life Insurance best choice for your Infant child



The ideal way to secure your infant’s future would be to insure your own life with him as the beneficiary of the policy. That is, if something were to happen to you, the life insurance proceeds would fund his future education and all the other plans that you made for him. It is the loss of your income that is being insured in this case, and rightly so.

There are numerous children’s plans available in the market with varying benefits and different investment options. Undertake careful research and select the right product that meets your desired future cash flow requirements and patterns, your risk profile, premium payment options and policy term.

But there is one feature of such policies that you just cannot and should not ignore - the premium waiver benefit. This is to ensure that if premium payment stops due to your death or disablement, future premiums on the policy would be waived off (paid by the company). This would ensure that funding for your child’s future is not interrupted or compromised even in the face of the most extreme adversity. Such a benefit could be in-built in some policies but certain other policies would offer it as a rider to be added on to the main policy. It is pertinent to ensure that this benefit is available any which way.

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