How Child Plans Help to Secure Your Child's Future
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How Child Plans Help to Secure Your Child's Future

How Child Plans Help to Secure Your Child's Future

8 Minute |

How Child Plans Help to Secure Your Child

A child insurance plan not only protects your child’s dreams but also gives you the financial boost you need to help them succeed on their chosen path.

As a parent, your primary responsibility lies in ensuring that your child’s every need is adequately met. Your child has dreams of becoming a doctor, or a pilot, or even taking up music. The question is, do you have the financial wherewithal to support your child’s dreams?

If you don’t, it might be time to invest in a child insurance plan.

 

What is child insurance?

Child insurance plans are a mode of creating a substantial corpus for your child’s future education needs. With higher education costs rising exponentially every year, many parents are faced with the task of accruing a large amount of funds in a short amount of time, for tuitions, accommodation, study material and project expenses, field expenses, etc. Meeting all the primary needs of higher education is a parent’s duty, but straitened finances may scupper your plans. Instead of hustling to gather the necessary funds at a later date, it is more prudent to invest in a child insurance policy that pays the costs of future education – so you don’t have to.

 

What does the child insurance plan entail?

• The child plan protects your child’s educational dreams by paying for them.

• Your child’s career in their chosen field can flourish with the right educational guidance and tools – and a child plan helps provide them with the necessary scholastic grounding.

• As a parent, you are spared the hassle of borrowing expensive education loans or using your savings to pay for your child’s future education.

• The child insurance plan makes the pay-out once your child attains the age of 18 years. However, its major benefit is that it pays the child irrespective of whether you are present in their life or not. For example, in the unfortunate event of your demise, while the plan is still active, the insurance provider would cease all future premiums but keep the insurance policy active. The pay-out and all other associated benefits would be paid as scheduled. This way, the child plan protects your child’s career whether you are present or not.

• The best child insurance plans in India entail both maturity and death benefits, along with a premium waiver facility, quick and flexible pay-out options, and affordable premiums. The payout may be made at specific intervals if you so wish. Choose a reputed insurance provider and use an online premium calculator to judge the annual premiums you must pay towards the plan.

• Some child insurance policies are market-linked plans. Exposure to debt and equities ensures that the corpus grows as per market conditions, but staying invested for a longer time (i.e. taking the policy when the child is very young) will help the money grow more.

• The policy sum assured in the child plan does not restrict the child using the money solely for educational purposes. They may use the money to fund a business idea, for example.

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