With the birth of a child, a long-term period of investing in our child begins, lasting at least until the child turns 18, but as we know, investing in a child is the best possible investment.
In insurance, investing in children is closely related to purchasing the so-called “dowry policy”. The name itself indicates dowry, which usually means accumulated material resources – property. It is therefore easy to deduce that the dowry policy is intended to enable the child to enter adulthood and have an easier start.
The second function of this product is to protect our loved ones in the event of the death of a parent (the policyholder). In this case, the child (beneficiary) will receive a pension in the amount specified in the terms of the insurance policy.
An important fact is that dowry insurance is exempt from paying tax, which means that the insurance sum at the end of the contribution period will not be reduced. In terms of technical terms of concluding dowry insurance, the policyholder can choose from various packages offered by many insurance companies available on the market.
Packages may vary depending on the age of the child, the parents’ health condition and the insurance amount for which we want to insure the child. The person who undertakes to pay contributions for the child decides what amount I want to pay towards the insurance and with what frequency. It is possible to pay contributions monthly, quarterly, semi-annually or once a year.
The insurance period may last until the child turns 25. In exceptional situations, the contribution period may be shortened, which automatically results in payment of benefits to the child. After the insurance contract ends, the collected funds are paid to the child.