The joy of being a parent is the joy of all joys for both you and your family. However, this bundle of joy is not without some serious responsibilities and duties as a parent, ones that need to be taken care of at an appropriate time. From raising the child in his/her early years to his higher education, each and every issue needs to be addressed to ensure that your child has a bright future.
However, the ever-rising costs of education, tutoring, and several other expenditures required for the better up bringing of a child is something that not many parents can smoothly sail through without having a secure financial pool. Early savings to gather a significant corpus of funds is a prudent thing to do in order to meet with the future expenses of higher education. This maybe best achieved by investing in a child plan.
Child plans are investment instruments introduced by insurance companies, such as MaxLife, to take care of your child’s future needs. At maturity, they offer lump sum amount which can be utilized to pay off your child’s college fees or marriage expenses. The pay-out received through this is at least 10 times the amount of premium paid.
A child insurance plan offers dual benefits of insurance as well as investment. Thus, it can take care of your child’s needs in your absence too. Parents can purchase this policy for a child as young as 14 days old, with terms of the policy varying in a tenure from 15–25 years. There are several long-term and short-term benefits of availing a child plan; few of these are listed below:
- Savings for your child’s Education
This is the most basic benefit offered by every child plan. With minimum premium payment, you will be able to redeem returns that are as significant as 10 times the paid amount. This amount is sufficient enough to cover the fees of higher education, college, or may be overseas education, depending on the money you invest in the plan.
- Support of your Child in case of Illness
These plans come with a provision of partial withdrawals that allow you to withdraw lump sum amount from the yet-to-mature policy. God forbid, if your child were to be hospitalized due to a medical condition or accident, then such pay-outs can be very useful to cover the medical expenses. This pay-out will act as an add-on for your health insurance plan.
- Support Your Child In Your Absence
You can never be completely prepared for an unfortunate event such as death. In the event of the death of a parent during the term of the child plan, the insurer will offer a premium waiver. Thus, the beneficiary—here it being the child—will not have to pay the remaining premium, and will receive the lump sum amount as promised at the time of purchasing the policy.
- Income Protection for your child
Bright and talented children, such as junior actors, singers, and artists, tend to earn substantial income at a very young age. A child plan acts as a safe investment to protect their income and grants them the benefit of capital appreciation over a long term.
- Collateral for Higher Education Loans
Higher education is expensive. If you plan to avail an education loan for your child in the future, then you can use the child insurance plan as a collateral. Apart from educational loans, this plan can also be used as collateral for other child-related borrowings.
Apart from all these benefits, a child plan is a disciplined and secure method of saving to safeguard your child’s future. So, why not purchase one today and ensure your child a bright future?