The policy for a future of a child – what you should know before choosing a policy. In this post I’ll try to include the most important information you should know about the dowry policies. Depositing money for a dowry, and the future of our kids is very important nowadays. The joy of having a child can overpower the whole world for a parent. Watching as the child grows up and learns are the most beautiful moments of parenthood. As a good parent you surely try to do anything for him. And what happens if you are injured in some accident, which prevents you from continuing your career or worse, ends your life? What will happen then to your child? Read the article below and ask yourself if you’d not want to financially secure your child.
The death of a parent is a huge shock, not only for the child. Almost all dowry policies are closed with payment of the money – in the form of a scholarship when child is a student or jusr once, to be used, for example, when buying an apartment. When deciding on the form of securing the future of your child, remember that practically everything can happen nowadays.
Insurance Policy for Child
Banks and investment funds offer dowry programs that ensure the child a good start after a several years of paying contributions. These programs, however, will not protect the child’s future in the event of an accident of a parent or both of his parents. Such a protection can only be guaranteed by dowry insurance policy.
Endowment policies consist of two components: coverage policy, including a child and / or parents and the investment fund. Protection is provided by the insurance company, and the investments involved, are according to the company, dealt with by the same company, or an external fund.
In case of the death of one or both parents the company will pay to the child’s account a sum that policy reconciles. It is specified by the person buying an insurance policy, it may usually be from ten to several hundred thousand dollars. Depending on the policy the control over these sums shall be replaced by another legal guardian of the child or capital remains the responsibility of the insurance company until the child reaches the age of 18 or 21 years. In the latter case, money is still invested.
Protection Policy for Parents
In the event of death of a child in some insurance policies, parents will receive compensation (its height is specified in the policy). It always will be transferred the total amount of collected and invested money. It won’t relief the pain, but this money can always come in handy.
Some policies have additional options to protect the health of the parents. If an accident occur resulting in damage to the health or permanent disability, you need to report it to the insurance company. In such cases, you can count on compensation or acquisition by the company of the obligation to pay premiums until the end of the policy. Either way, you’re sure that your child will start its adult life with some capital.
How to choose a dowry policy for the child’s future? Policies are different, as are the insurance companies. Companies offer a variety of products, because they want to give their customers a maximum choice. Parents can therefore choose the option that suits them best. The policy may have an increased level of protection (if less money is invested), or provide a minimum level of protection (when most of the money goes to the capital market). The effects can usually be minimized: by buying another individual life insurance policy or paying a separate investing contributions.
An example of the range of individual insurance policy (provisions of the contract):
The insurance covers the death of the insured, and beneficiary reaching the end of the contract. The insurance covers the life of the insured and beneficiary. Policy can be extended to the following additional agreements:
– Death of the insured as a result of the accident,
– Insurance annuity dowry
– Co-insured disability due to an accident,
– Taking over the payment of contributions in case of total disability of the insured,
– Statuesque investment fund.
There is an option of one-time payment for the whole insurance period. Besides, you can pay premiums monthly, quarterly, semi-annually or annually.
There is no possibility of substitution of the insurance coverage to another. Coverage is worldwide. Agreement may be signed by a person aged 18 to 65 (for children from 0 to 18). The contract lasts for a minimum of five years of subject’s age 70 (in case of a one-time payment it’s 80 years of age). Co-insured (beneficiary) who has completed 18 years of age has the right to reduce the period of insurance, if married, became a parent, or if enrolled in college. The agreement may apply to 18 (the first anniversary of the policy after the age of 18 years) or 25 years (no later than the first anniversary of the completion of 25 years) of beneficiary. The provision is paid once.
Basic disclaimers and limitations of liability of the insurer:
The agreement is reversed in the case of:
– Giving false information by the insured on the risk assessment,
– If the insured person’s death was the result of an intentional act of a beneficiary.
– Suicide of the insured (within 2 years after the signing of the agreement).
and if the insured’s death was the result of:
– Acts of war or martial law,
– Voluntary active participation of the insured in acts of violence, terrorism or riots,
– Submission of the insured for medical treatment outside of medical supervision,
– Opportunistic infections, if the insured at the time of his death was HIV-positive,
– Self-harm of the insured.