Raising a child in this modern world is not as easy as it was a decade ago and the financial situation of parents plays a crucial role in it. Even if the parents are able to arrange significant amounts of money for their education and life goals, an unfortunate event can wreak havoc.Read more
In such scenarios, child education plans play a crucial role by offering significant financial help.
Child insurance plans offer both investment and insurance benefits, wherein, parents remain the primary policyholder. Besides, parents can start investing in this plan right after their child is born so that he/she is able to reap benefits when they pursue their dreams and goals.
Child insurance plans are slightly different from ULIP and Endowment plans as they help build a corpus for children’s goals. Under this plan, money can be withdrawn once the child reaches a certain age, i.e. 18 or 21 years as per the insurer’s policy conditions.
Child plans offer multiple benefits that can help both parents and children during future eventualities. Here are some of the key reasons why one must invest in child insurance plans:
It is every parent’s dream to secure the future of their children. In today’s time, providing a good education is not easy due to the rising costs. Inflation in India has spared none, and education is amongst the most affected. Most of the parent’s income is used up for sending their children to a good school or college. The child plan ensured that parents do not have to spend their earnings on their children’s education. Investing systematically in this plan helps build a corpus for the years to come.
No matter how much we avoid talking or thinking about death, it is unavoidable. And when it happens especially with the earning member of the family, financial catastrophe arises. Since parents are the primary policyholder of child insurance, the plan ensures children’s financial safety against the untimely demise of the parent. While a lump sum is paid upon the unfortunate demise of the parent, the policy continues until it reaches maturity.
A child insurance plan is accepted as collateral by every bank in India. Whether searching for an education loan or other needs of children, the entire process of securing a loan against this plan is easy. It also helps in on-time approval of loans.
Investing in a child plan helps form a period saving habit, which is especially required today with the increasing inflation. As children grow, they require significant funds for pursuing higher education or marriage. By investing in the premium of a child plan, inculcates a habit of savings for future expenses and grows money with it.
Since child insurance plans offer both investment and insurance components, multiple benefits are covered under the plan. Look at the following benefits that help make it a must-have in the kitty of future savings:
If you ask us, yes. Child insurance plans are slowly becoming the need of the hour to secure children’s financial future. Investing in such a plan is helpful that helps accumulate and grow sufficient amounts to fulfil the needs of the child.
It is also recommended to buy child insurance online to receive extra discounts and purchase through a hassle-free process. Besides, one must select an appropriate coverage keeping the child’s future needs and goals in mind. Investing in the plan at the right time is crucial as children and inflation grow simultaneously and quickly.