An insurance policy for a child might not seem wise because there is no financial value. There is no obligation to cover the child. There is a misperception that a child’s life is to be protected. In reality, in the child’s plan, the parent has the one who ensures their child’s survival, and it is the kid who’s the beneficiary!
The child’s plan can be a well-known way to create a financial fund to support your kid. It considers the different milestones that occur that your child will reach in the future that requires A substantial sum of money may be necessary. Here’s why you should think about investing in:
Dual Benefit: Investment + Insurance
A life insurance policy for your child offers you the double benefit of insurance and investment. It protects you from the many events in the child’s life by assuring protection at all times. The money can be used to address any financial necessity when they mature.
Helping your child’s education
Education of high quality is the most valuable gift parents can offer their children. But, quality education is not free. Along with the standard tuition fees, the costs for extracurricular activities, field trips, and so on. Market-linked investment plans help increase the returns of your portfolio by making the portfolio invulnerable to inflation.
Collateral to be used for loans
Because a child’s insurance policy has a surrender value used as a loan’s collateral, the loan amount might vary depending on the value of the fund utilized to make the loan.
Waiver for Premium
Children’s insurance plans include the waiver of premium. These guarantees that in the event of your death and subsequent dividends will be paid, and your insurance provider pays out the remainder of your dues. Therefore, no matter the outcome, your child will be eligible for a significant lump-sum payment to help him a better plan.
Consider Ottawa Life insurance if you are a young parent looking to develop a corpus for your child and are willing to invest for the long run.
We’re here to assist you with your commercial and personal insurance requirements. For further information, please contact us at (613) 454-1424 or info@ottawa-lifeinsurance.ca.
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