Child Protection Rider: Meaning and Key Benefits

Seeing your kids happy is one of the greatest feelings in the world. When you become a parent, you are rewarded with unmatchable happiness. However, happiness comes with responsibilities.Your children are dependent on you for their initial needs. You need to take care of all their expenses till they start earning. To fulfil these needs, a lot of funds are required.

As your child grows up, there can be many goals and dreams that they may want to achieve. These can be entertainment, foreign trips, etc. But two of the major financial goals that you want to help your child achieve are a good education and marriage. Such goals can be fulfilled with a child insurance plan.

• Higher Education- There are many careers that your child would like to take on in the future. They may want to become a doctor, an engineer, or manage his own business as he grows up. A good education is a must for him to be good in the field he chooses.

Pursuing higher education from a reputed educational body is very costly. Thus, you need to make sure you collect enough funds to fulfil this.

• Marriage- This is also a major goal that you would want to achieve for your child. You want to see your child start their new life with a grand celebration. Marriages in India are often big and lavish events. These are many parents' dreams.

What is a Child Protection Rider?

Goals like education, leisure, marriage, etc., involve huge funds. If you do not make investments early, then it will become very difficult for you to ensure that your child achieves these goals.

What will happen to your child’s goals if you die unexpectedly? Who will handle your investments? To make sure that your child does not have to sacrifice his dreams, you need to opt for a child insurance plan with a child protection rider.

A child protection rider is an additional rider that helps protect your child’s financial goals even if you are not there with him.

Riders from Canara HSBC Life Insurance

Life insurance policies include an option to choose additional benefits known as riders. These enhance your basic policy’s scope. Child protection riders or child riders are very essential to your policy.

Here are the riders offered by Canara HSBC Life Insurance:

• Premium Protection Rider: Also known as the premium funding benefit, it aims to ensure that the investments reach your targeted amount even if you are not there. This rider helps to protect money for your child’s goals. This rider is included in the Promise4Growth Plus ULIP plan as well as the Guaranteed Savings Plan.
  
  How Does Premium Protection Rider Work?
  If you die unexpectedly during the term of the policy, then your family will be given the death benefit and the policy will cease. But if you choose this rider, then the policy will be continued as intended, even after the payment of the death benefit. The remaining premiums will be funded by the company.
• Child Support Benefit (CSB): The child support benefit is one of the multiple riders offered by Canara HSBC Life Insurance under its iSelect Smart360 Term Plan.
  
  How does Child Support Benefit Rider Work?
  If you have opted for this rider, then an additional sum assured known as CSB sum assured will be paid to your family after your death or if you are diagnosed with a terminal illness such as cancer, etc.

How does Child Support Rider Benefit you?

Opting for an insurance policy with a child support rider will benefit you in the following ways:

• Direct Financial Assistance to your Child- With a child protection rider, you get an additional sum assured. This amount can help your child achieve the goals that you have thought of. Also, it helps financially secure your dependent family members by providing them with additional funds that you can use for your child.
• Helps your Child to Stay on the Course of their Goal- Goals such as higher education are very costly. With the rate at which inflation is rising, these costs are likely to increase further in the future. It will take a lot of time to build these funds. With a child rider, your plan continues to accumulate even after your death, so your child will still be able to achieve his dream.
• Peace of Mind- Opting for this rider takes a big load off your mind and gives you peace of mind. This is because this rider will ensure that your policy continues and your child receives the money when it is actually needed.

Select the Right Riders while Buying a Child Insurance Plan

Riders form an important part of the policy. Not only is the child protection rider, but there are other riders available for you to choose from. You should have an adequate number of riders because it helps cover for those aspects of the policies that are not covered by the base policy, it gives you enhanced protection and helps increase your sum assured and it removes the need for buying separate policies for covering different aspects.