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  • Secure your child’s future with Insurance Plan

    Published on November 29, 2021

    Parents will agree that the best present they can give their children is an education that will ensure their future. The very thought of leaving a child without access to one of the best universities or colleges is a frightening one for any parent. However, the ‘best’ colleges generally come with a high price tag. Investing in a child’s education in India is largely unstructured. In addition, they put money into general financial products such as fixed deposits or mutual funds without considering how much they would need to graduate the child. The best method of planning the future of your child is through child insurance.

    Child insurance – what is it?

    A child insurance plan provides a substantial amount of money for your child’s future educational needs. Since higher education costs are on the rise every year, many parents have to accumulate large amounts of money in a short period to pay for tuition, accommodations, study materials, project expenses, field trips, etc. As a parent, you have to meet all the primary needs of your children’s higher education, but tight financial conditions may sabotage your plans. Investing in a child insurance policy that pays future education costs – so you don’t have to – is a better strategy than rushing to gather the funds at a later date.

    A child insurance plan serves what purpose?

    The market for pension plans has existed for decades. With many adults nearing their sunset years, they have secured their future. It is always assumed that a child’s future is secure and protected when her/his guardian or parents are present, but s/he could have a lot of difficulties if they are not there.

    An investment in your child’s future becomes a necessity to prevent this unpleasant scenario since it will allow them to reach their dreams and allow them to overcome any obstacles in their lives, even when you are not there. Children’s financial support will be guaranteed as long as they are legally recognized as adults if their guardian passes away suddenly.

    Plans for child insurance

    Insurance companies offer numerous child insurance packages that can be customized to suit your needs. The general needs of the people have caused some of them to be quite common.

    Unit-Linked Investment Plans: This allows you to invest in both debt and equity products. High-risk equity products have a higher percentage of the amount, but that is precisely what gives a higher return on the investment, making it a smart decision for your child.

    Single-Premium Insurance Plans: Often, parents do not want the stress of remembering the dates and putting money aside for premiums, so they refuse to be stuck with an annual payment. For such situations, you might even be able to get discounts on a one-time major payment.

    Child Endowment Plans: The company decides which debt products to use with your investments. Despite not generating great returns, your money is guaranteed to be safe because the risk is low.

    Regular Premium Insurance Plans: Parents often opt for which benefits their child will receive and forgo others. In addition, they can pay monthly or quarterly premiums rather than annually. As well as being suitable for many, these payment cycles come with a variety of benefits based on the schedule.

    Can you tell me what a child insurance plan entails?

    By paying for your child’s education, the child’s plan protects his or her educational dreams.

    If your child receives the right instruction and tools, their career will flourish – and a child plan gives them the scholastic foundation they need.

    You need not worry about taking out expensive student loans or dipping into savings to pay for your child’s education.

    When the child reaches 18 years, your child’s child insurance plan begins paying out. A major benefit of this plan is that it pays the child regardless of whether or not you are present. For instance, in the event of your demise, your insurer would stop collecting all future premiums while keeping the insurance policy active. Benefits such as the payout, for example, would continue to be paid. Thus, whether you are present or not, your child’s career is protected by the child plan.

    Children’s insurance plans in India offer maturity and death benefits, a premium waiver, payment options that are flexible and quick, and affordable premiums. The payout can be scheduled for specific intervals if desired. Choosing a reputed provider and using an online premium calculator will help you decide how much you must pay each year for your policy.

    It is possible to buy market-linked child insurance policies. As the corpus grows due to exposure to debt and equities, but staying invested for longer periods (i.e. getting the policy when the child is a child) will result in greater growth.

    It is not prohibited for the child to use the sum assured solely for educational purposes under the child plan. They can, for instance, use the money for funding a business idea.

    Investing in education ensures a bright future. You must make sure that the child attends a good school and college, no matter what field or career they choose. Since India is a developing nation, children have a huge impact on the nation’s future development. Education can help achieve all of this. Education opens the door to financial security and allows children to gain an open mind and live more balanced mentally and physically.

    You can use child plans to ensure funds for the future needs of your children. Several modern-day policies offer several features that allow you to grow your investments and provide funds for your children’s education. If you invest small amounts regularly rather than a lump sum, you will avoid the burden of a large investment. As a result, the children have access to a large sum once they are ready. To fulfil your children’s dreams, invest today in a sound financial plan.