Child insurance plans if defined in the simple language then these are the plans in which people invest so that they can secure the future of their child financially. These child plans already come with a premium waiver benefit. This premium waiver benefit means that the future premium payments which were pending after the patient died during the tenure of the policy will be stopped.

Despite the fact that these child insurance plans are very important and everyone should invest in the same, there are many myths which are associated with them. Therefore, our today's blog is all about those common myths vs. reality of child plans.

Common myths associated with child insurance plans and the reality behind them-

Only the child is covered under the child insurance plan

This is one of the most common myths associated with the child plan. However the same is completely untrue. There are broadly two different types of child insurance plans from which one can choose- plan which covers only the child and the plans which cover the whole family. Mostly, the best child plans are the ones which cover the parents as well. So, when you are out to invest in a child plan, don't forget to ask if the plan covers the parents as well or not.

The child insurance policy ends automatically if the parent dies

No, the child insurance policy does not end if the parent has died. Instead, there are times that of the child insurance plans have a benefit of premium waiver which offers more financial security to the child. Also, if the parents are covered the same plan then the child gets immediate payment after the demise of the parent. As long as the insurance plan is concerned, the premiums are them paid by the company itself after a parent dies. Therefore, it is completely wrong for people to think that a child insurance policy ends after the death of his/her parents.

The child plans are only useful for meeting the education cost of the child

There have been many times when we came across people who thought that these child insurance plans are only best for the education of the child. However, the answer to this myth is "no". According to the insurance plans, the benefits can be used without any restrictions. This means that the child can use the benefit in the way he/she pleases.

The child insurance policy will not be able to meet all the future expenses

There are many people who often complain that the child insurance policies will never be able to meet all the future expenses and therefore decide not to invest in the same. However, if one makes the right financial calculations and proper understanding of the plan, then the selected child insurance plan will definitely be able to fulfill all the financial requirements of the child's future.

The claims of the policies often get rejected

In one of our previous blogs, we have explained in detail about the common reasons why the insurance claims get rejected by the company. Hence, it is just a myth that all the claims would be rejected. If a person has read the insurance form and details properly and also given all the information correctly, then nothing can stop people from getting their claims.

The terms and conditions of the policy are difficult to understand

Another most common myth associated with the child insurance plan is that all the terms and conditions of the policy are very difficult to be understood. However, it is not the case because even if someone is finding it difficult to understand these terms and conditions then there are many policy agents available at your service.

The child insurance policies lock the investments for a long time

The next myth associated with child insurance plan on our list is that such policies often lock the investments for a very long period. However, this is not true at all. Rather, one can apply for the policy loan after 2-3 years of their investment in the plan.

Payments are only approved if your child is planning to go for higher education or marriage

When we asked common people about their opinion on the child insurance plans, they said that the payments are only approved when the child is planning for higher education or in case of study. However, this is a myth. The truth is that the main motive of this investment is to make sure that your child has the necessary funds whenever required.

One can avail the benefits only after the end of the plan

The professional and experienced policy agents say that people believe that they can only avail the benefit of the child insurance plan at the end of the plan. However, it is not true at all, because people can apply for the benefits just after 2-3 years of investing in the policy.
Now that our readers have read the most common myths associated with child plans and also the reality behind them, we hope that they will understand the importance of this policy and will immediately plan to invest in the child insurance plan.

Some common FAQs about the child insurance plans:

This is one of the most commonly asked questions asked by the people. The answer to this is no. as there are so many different child insurance plans available in the market and one can easily pick the plan which matched his/her own finances.
The parents can purchase a child insurance plan on the day the child is born as well and this means they don't have to wait for the child to reach a certain age.
We completely understand that not every person is completely aware of all the child insurance plans available in the market and it is obvious that there will be times when one would need suggestions. Hence, for this purpose, there are trained and experienced professional policy sellers who can give you all the information you want to know.
Another most asked question by the parents is that can they apply for the child insurance plan online and the answer is absolute yes. In today's date due to the COVID-19 pandemic situations, people can do most of their investments and banking related work online as well.
There I absolutely no limit to the number of plans one wants to invest in such as term life insurance, child insurance, term insurance, health insurance, etc.

If our readers think that we have missed some important information or they have a question to ask us, then they can simply reach us through the common section given below. Our team will try to get back to you as soon as possible. Until then keep reading our blogs for detailed information about the insurance plans.


*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time

The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.

Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

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