What is Children’s Insurance Cover?
These are insurance specifically obtained for the benefit of one’s children. In most cases, a child’s parents, grandparents, or guardians can obtain child life insurance to cover his or her children against unexpected death.
Some policies offer small amounts to simply cover funeral and burial costs, while others offer a savings component that can be potentially used by your child later.
However, Child life insurance cover doesn’t refer to any particular type of policy cover; you can’t also take out a policy just for your children. But can, however, add your children to your own life insurance policy, with an add-on known as children’s critical illness policy cover.
By adding children’s critical illness cover to your personal life insurance, you’ll receive a payout steepens should your child break down with a serious illness. This would cover any costs you’d have to make for their care, including any time out of work you’d have to take to look after them.
Are you considering taking out a life insurance policy for your child? Please do well to have a chat with your policy advisor to see what they can offer.
Most importantly, make sure you compare prices to see which policies can add child life insurance at the best price. Child insurance cover is very important in our society today, it followed the more reason why most countries and states of the world made it compulsory for their citizens through the introduction of
The Children’s Health Insurance Program (CHIP) is an arrangement that subsides between the federal and state governments that provides cheap-cost health coverage to children in families that earn a high salary to qualify for Medicaid.
In some states, CHIP covers pregnant women and children ranging from age of 18–21 years. Each state offers CHIP coverage and works closely with its state Medicaid program.
Two Types of Children’s Insurance Cover Need to be Distinguished Here
These two import child insurance cover includes
(a) Child Deferred assurance: In this scheme, a policy is taken on the life of one parent. There’s an option built into this contract. Either that a lump sum is paid to the child at the attainment of a particular age, usually 18 or 21 years that is “vesting age”, which is the age at which the child can covert the insurance into an endowment or whole life insurance for himself.
Advantages of Children’s diferred insurance cover
i. the payment of premium is always very cheap and easy to afford, where the child avails himself of the conversion option, because of his relatively young age
ii. In the event of the sudden death of the guardian or parents of the child before the option date, the policy still continues in force until the option date although no additional or further premiums need to be paid.
iii Should the child dies before the option date, the parent can still continue with the policy if he wishes to, or have his premiums returned to him with or without interest, as the case demands.
(B) School Fees Policy (Children endowment cover):
This policy is contracted on the life of the parent with the agreement that the proceeds at maturity be paid instrumentally for the child’s education. Such installment bases can begin, say at 12, when the child is in secondary school, to continue say biennially.
How Does Child Life Insurance Work
Children’s insurance can be obtained directly from a company, in most cases combined with your own life insurance policy, or purchased through your workplace. Cost may differ to some extent depending on the type of policy it is “[whole life or term], and where you purchase it (through work, or on your own).
Generally, the policy owner must be a parent, grandparent, or legal guardian until the child becomes an adult, not below the age of 18-21 of age.
How much does children’s critical illness cover cost?
You can often add your children to your life insurance policy for around $10 a month, but this will depend on your level of cover and earnings (Income), personal circumstances, the insurer you go with e.t.c.
This is because your premiums will be determined by how much coverage you actually need, you may want to consider the emotional cost to yourself and your family if you lose a child and what financial support you would need.
You’ll also need to consider how long you want to be covered. Policies will vary in length, but will typically cover your child until they become of age (adulthood), i.e. when they turn 18 or 21. However, some will last longer than this, providing cover for your child until they finish higher education, for example.
Children’s Life insurance cover is an insurance coverage obtained for the general benefits of one’s child. It is aimed at paying a death benefit to the parent or guardian if a young person dies. While child life insurance is intended to help cover death-related costs or illness suffered by a minor, some policies also build cash value, like a savings account to attain this unexpected loss.