How important is life insurance including child plans?
Child life insurance is a form of permanent life insurance that insures the life of a minor. It is usually purchased to protect a family against the sudden and unexpected death or disability of the breadwinner. Child life insurance policies typically offer the owner the option to purchase, or in some cases obtain additional guaranteed insurance when the child reaches maturity.
As we all know, nothing in our lives is guaranteed and in the event you pass away, your loved ones will be severely impacted both emotionally and financially. It is therefore important that you make sure that the financial needs of your loved ones are provided for and to prevent that loans, such as your bond or any other debts, will not become their responsibility.
If you are struggling to afford your current life insurance premiums, remember that there are quite a number of alternatives that are well worth considering, instead of cancelling your policy altogether. They are as follows-
Decrease the value of your life cover policy
If your current life insurance premiums are high and you can no longer afford to pay them, you could perhaps decrease the value of your cover, so that at least your dependants will have some funds available instead of none at all. Most life insurance providers will be able to assist you in lowering your monthly insurance premiums by adjusting the value of your life insurance cover, which is certainly an option worth considering.
Change from permanent to term life cover
If you currently have a permanent life insurance policy, you will be paying higher premiums than if you were to have a term policy. It is advisable to speak to your insurance consultant to enquire about the possibilities of changing your cover. Term life cover is usually cheaper than permanent cover, which may have a big difference in terms of affordability. Should your financial situation improve over time, which is always a possibility, you can change back to permanent life cover.
Shop around for a cheaper life insurance policy
No matter which type of policy you currently have, such as a permanent life insurance policy or a term policy, it is always possible to consider other alternatives. You could go online and do some research into different insurance companies, and compare the cover packages they offer as well as their monthly premiums.
Get Unit Linked Insurance Plan for two-fold benefits-
A Unit Linked Insurance Plan (ULIP) is a product offered by insurance companies that unlike a pure insurance policy gives investors the benefits of both insurance and investment under a single integrated plan.