A child plan is a specific type of insurance plan that helps safeguard their future against the uncertain eventualities of life. It is designed in a way to help you create a financially secure future for your child. With a child insurance plan, you can ensure the ultimate financial support for your child in case of your untimely demise.Read more
It is considered to be the best insurance plan for a parent to purchase for their child because it provides a life cover with flexible pay-outs during crucial phases of your child's life. Since we all are familiar with the uncertain nature of life, the child's plan is designed to after considering this very uncertainty of life. This way you can secure your child's future without worrying about the uncertain events of life.
The first and foremost priority of your child's life is their education. Every parent works so hard to save money and invest in the education of their children. With the rising costs of education, it is quite difficult to save big for their higher education. Buying a child plan can help you secure funds for your child's higher education. In case of your untimely demise, the sum assured can be utilized to meet his education expenses. Or After maturity, the amount can be used by your child for achieving goals further.
Also, if you will choose wisely, the child plan can take care of the inflation effect in the future. So that when the time comes to use the money, it won't cut short.
The nature of child plans is very flexible because it is designed to provide cover against the unavoidable risks. The best child plan provides partial withdrawal. God forbid any medical emergency due to an accident, uncertain event, or some serious medical ailment, with the child plan in hand you will be able to withdraw money to meet the sudden medical expenses.
Children carry so much potential in the world. While some are real nerds about science, some carry interests in creative fields. Few among them start to earn at a young age. Buying a child plan for your children can help protect their income and provide financial benefits in the long run. If your child is an actor, performer, musician, or makes money using his skills, a child plan will turn out to be useful for them.
The overall inflation effect and the rising cost of education make people compulsive to take an education loan. Purchasing a child plan can help in securing a loan for higher education in a collateral manner. A child plan comes with this benefit. Since everybody knows monthly savings would never be enough to meet rising education costs, a child plan can come to the rescue.
Life is full of surprises and uncertain events. It is filled with good events and bad events. If you have planned to buy a child plan, you have made a wise decision because this is going to support your child in your absence. If for any unfortunate reason, your child loses both you and your partner, your child will be in a very devastating situation. You can add a premium waiver rider in your basic child plan, this will benefit your child in your absence, as this rider allows insurance companies to continue the plan. With the help of this, your child is entitled to receive a lump-sum amount without any further payment of premium. With this rider, your untimely demise will not mark an end to the policy, as the responsibility of paying the balance premiums lies with the insurer. Hence, your child will be financially independent to meet the daily expenses or his education expenses in your absence.
Not just child plans, but additional riders can benefit the insured in almost every type of insurance plan. The riders can be added to the basic policy by paying an extra amount. Even a single rider can extend the coverage by offering extra benefits. Also, adding the rider means you can create an extra shield to protect the entire plan so that at the time of an unfavourable event the policy would not collapse. Following are the riders you can add to your basic child plan:
A child plan comes with the tax benefit. You can claim tax exemptions under section 10(10D) of Income-tax act 1061. Also, if the premium paid in any year does not exceed one-tenth of the basic sum assured, you can claim tax exemption for interest earned on the investment.
As a parent, your prime duty is to financially secure the future of your child and the best way to start is by buying a child insurance plan. A child insurance plan not only offers the financial security that you would want for your child but also provides the benefits of investments as well.