What Is Child Education Benefit Under Accidental Insurance?

Personal Accident Insurance

Did you know that India accounts for nearly 6% of road accidents worldwide despite representing only 1% of the global vehicle population? Every day, over 1200 accidents occur in India. If we were to count the death rate due to these accidents, the figure would be in thousands. Poor traffic management, an increasing number of vehicles, improper driving etiquette are the major causes of accidents. 

The abovementioned statistics and the uncertainty of life make it prudent to be equipped with personal accident insurance. Personal accident insurance offers financial protection to the insured and her/his family if they fall victim to accidents, resulting in death or total/permanent disability. The funds received under such covers compensate for the loss of income of the life assured to sustain the needs of a family. 

One of the key offerings of personal accident insurance or group accident insurance is the child education benefit. Let’s study this benefit in more detail in the next sections. 

Child Education Benefit under Accidental Insurance

If you are the only earning member of your family or a single parent, you cannot leave financial planning to mere chance. You have children who are dependent on you for their education and wellbeing. You must have a plan in place that takes care of their future education expenses amidst rising costs to ensure a financially stable future for them. If any misfortune may befall you leading to a loss of income, your child's education should not be affected. 

One of the most foolproof ways to offset the abovementioned risk is to invest in personal accident insurance covered with child education benefits. The child education benefit under accident insurance offers financial assistance to your dependent children to pay for their tuition fees and other course-related expenses. 

Features of Child Education Benefit under Accident Insurance

• Child education benefit is only payable if death or total/permanent disability occurs as a result of an accident. 

• It entitles a maximum of two dependent children to receive the benefit upon submitting proof of enrolment at a government accredited educational institution.

• The surviving children have to be dependent on the insured for their education expenses. 

• Claims to avail child education benefit under accident insurance shall only be approved if the child is below the age of 25 years on the date of death. The age limit varies from insurer to insurer. 

• An amount equal to the tuition fees is reimbursed to the dependent children, subject to the sum insured. 

• In the case of more than one dependent child, the sum insured is divided equally among the children, provided that both of them meet the eligibility criteria.

• The child education benefit under accident insurance is payable as a one-time payment. 

Please note that the benefit amount, the age limit of the child, and other terms and conditions may vary from insurer to insurer. Therefore, you are advised to check with your insurer before purchasing the said policy. You should also ensure that the sum insured is sufficient to cover the education of the child through to its completion.

Exclusions

Child education benefit allowance under accident insurance is not payable if the insured dies as a result of an accident under the following conditions:

• Being under the influence of alcohol or drugs/narcotics

• Having participated in criminal activities

• Self-harm or suicide attempt

• Engaging in high-risk/adventurous sports 

• Being involved in wars, civil riots, etc.

In Conclusion!

No child should be left to fend for themselves. Accidents are unpredictable events, and there is no guarantee that you will be around to support your children. Education being an integral part of growing up, should not be left unplanned. Parents should make it a priority to ensure that their children have access to quality education even in their absence. The child education benefit offered under personal or group accident insurance can help you eliminate this risk and is, therefore, a worthy investment.