With all the stresses of being a parent, it is understandable if you have not given much thought on starting a savings plan for your child. Who knows, you may have thought about it but the timing and your financial situation wasn’t right. A savings plan though is useful for your child as it is the best leg up in life you can offer him/her.
Here are some of the things you need to know about the Junior Plan:
1) It is not that expensive – Contrary to popular belief, life assurance is not that expensive. How much you insure depends on you but we always advice a sum assured above SCR200,000. In that way, your child can have a meaningful amount when he/she is older, considering the time value of money.
2) We continue to pay after you pass away – In the unfortunate event that you pass away before the maturity date, our office will continue contributing payments towards the policy. Your child will therefore still receive the full sum assured upon maturity.
3) You can start as early as 1 y/o – The earlier you start, the cheaper the monthly premium rate you pay. This will allow you to have more flexible options such as insuring a higher amount for a lower monthly payment or taking an attractive policy which is within your financial means. There is a maximum age limit however so you need to hurry up before it is too late.
4) You can choose the term of the policy – Indeed you have some flexibility to choose when your child can receive the full sum assured, at the age of 18, 19, 20 or 21 yrs. You will have to weigh this option against the sum you want to insure and on the monthly premium payment plan you are comfortable with.
5) We pay your child directly – When the policy matures, we will make payment directly to your child. This may be a perfect coming of age present for your child.
6) You are paid the full sum assured in the event of death of the Assured – Life can be very unpredictable and sad despite our best efforts. In the very unfortunate event that your child passes away after the age of six, you will be paid the full sum assured as the policyholder.
Indeed, this policy protects both parents initiating the cover, as well as the child.
It is never too early to give your child a leg up in life. For more information on the Junior Plan, contact us or one of our agents.