If you are planning to start a family, congratulations. This is sure going to be the most exciting time of your life. Welcoming a new family member calls for celebrations. But other than the celebrations, it brings new responsibilities.
Education costs are constantly rising, and one cannot predict uncertainties of life. It is crucial that you start planning for your child’s future at the earliest. New age parents are thinking of securing child’s financial future even before the birth. And that’s the best thing to do. Having a child insurance plan is the most effective way of protecting your child’s future. Such plans ensures that your child gets financial security, irrespective of any future uncertainties.
Read on to know why is extremely important to buy a child plan?
A child plan covers untimely demise of parents:
If a parent dies within a few years of taking the plan, the child plan will pay the lump sum amount of the sum assured to meet the financial needs of the child. Not only this, the plan will also continue to invest on behalf of the policyholder.
Meet all the needs of the child:
A child plan is designed in such a way so that it meets all the necessary requirements of your child. Right from education to marriage to health care, everything is taken care of by the insurance provider.
Inculcates the habit of saving:
A child plan requires parents to pay year after year premium. This will make investing a habit and ensure enough savings for the kid. Although, parents do get an option of stopping the premium but experts suggest on continuing the same to avoid any financial crunch.
Customised pay-outs and partial withdrawals:
From the time your child enters your life till the time he/she graduates, requirements might change. There are times when needs get bigger. And to deal with such situations, insurance companies’ offer features like customised pay-outs and partial withdrawals. Using them, you get the flexibility to withdraw the invested money even before the maturity.
Besides security, these type of plans help fulfill other investment objectives as well. You are eligible to avail tax benefits as per prevailing tax laws.