Protect your little one with a child plan
With just the right amount of planning, you can give your children the future they deserve without facing financial hassles
As a parent, your child is your top priority. You want your child to be nurtured with love as well as security. To make sure that your child is safe and secure, it is very important that you take a child insurance plan from any reliable life insurance company. While bringing up your child, you should also take care of his or her financial needs. You need to provide your child with holistic education so that he or she can grow to be a sensible and independent person and face the world with the right attitude.
Raising a child will require you to spend a lot of money on different needs. However, if you plan your finances smartly, you will be able to manage all your other expenses without any hassle. You will have to start planning at an early stage of your life after your child is born. Along with purchasing specific child insurance for your child, it’s also important to have a health insurance plan for your family. A medical insurance plan will protect you and your family when a family member’s health gets affected suddenly.
If you are in two minds about opting for a child insurance plan, we will help you make the right financial decision. A child plan will enable your child to enjoy continuous learning as well as a safe future. When you have a child insurance plan, your child can achieve his or her aspirations without having to let go of them due to unforeseen events or lack of funds. You can hone your child’s career successfully with the support of a child plan.
How does a child plan work?
A parent will purchase a child insurance plan and the child will be the nominee in this plan. If any unfortunate event occurs, the child or the nominee will get a sum of money that will be mentioned in the insurance policy document. This sum is the protection segment of the product. It also has an investment segment, which will grow in time. This amount can be utilized for your child’s higher education, career plans, wedding arrangements, or even for starting up a business venture independently. A child plan also extends good returns to the policyholder. Moreover, these returns can be obtained even if the policyholder dies during the policy period.
How Do Child Plans Help You?
A child insurance plan comes with a host of benefits and advantages:
■ It provides you with life assurance wherein you will receive protection for your life and also you will also be able to enjoy an investment.
■ When a parent passes away, the child will receive a death benefit. By taking this benefit, you can be assured that your child will not have to depend on others for financial support. Your child’s life goals will not be affected even when you are not around.
■ Apart from the death benefit, a child plan also offers a benefit when the policy matures. This benefit can be utilized for meeting any of your child’s needs.
■ Imagine your child wants to go abroad for an academic course. In such a situation, you do not have to take any education loan or personal loan for paying university fees. You can redeem your child plan and use the money to pay the fees. This way, your child insurance plan will help you gain great returns for your child’s higher education.
■ A child insurance plan facilitates compounding of money. When you invest a particular amount at the beginning of the policy period, your amount will grow extensively and by the time the policy matures, you would have accumulated a large amount of funds. This lump sum amount can be utilized to ensure a splendid future for your child.
■ Did you know that you can use a child plan as collateral while applying for an education loan? That’s right! Apart from the amount generated by the child insurance plan, you may also apply for an education loan in case you need extra funds for attending your dream university or for studying the course that you have always desired to study. For an education loan, your lender may ask you to submit collateral. Believe it or not, you can use your existing child plan as collateral. However, this will differ from lender to lender. Do check with your lender beforehand.
A child plan comes to the rescue of a child when a parent is absent. In case something unforeseen and unfortunate happens to a parent or a guardian, the child will not be left without any money. Even if the child has not started earning, he or she will not have to worry. With the assistance of an elder, he or she can rely on the funds generated by the child plan.
You can take care of your child’s various needs like providing them proper education, taking care of their health, aspirations and safety in life by allotting your money for each purpose by investing them in different life insurance plans along with purchasing specific child plans.
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