If you are a parent, you’d know how having your first child is the joy of all joys. Right from the early days of nurturing to good quality education to shape up her future, there are several key milestones in a child’s life that even parents go through in moulding their child into a responsible adult. To achieve such milestones without any hassles, it is imperative that financial planning be done at an early age.
As children grow, they are often asked what they want to be when they grow up. Doctors, Engineers, Pilots, Architects are some of the popular replies. However, the spiralling cost of education can maim their long-standing ambitions. To meet the educational expenses in a convenient way, insurers such as MaxLife have launched child plans. Child Plans are special insurance plans that offer maturity benefits along with insurance cover. They provide required economic support to meet your child’s education expenses at key milestones in life. They are an integral part of financial planning for child’s education.
Financial Planning should begin with investments for early years of schooling and should finally target higher education. Here are different life stages where financial planning is done
Below 5 years
At this stage, you will only incur food, clothing, health, and day-care expenses. Thus, you can invest aggressively in savings plans, unit-linked insurance plans, and growth plans that offer significant capital appreciation over a period of time. At this stage of life, you will have to create a specific investment target for higher education expenses, and accordingly invest in child plans to gather substantial investment corpus in future. Using help of financial advisors is recommended for planning portfolio, so that your child can have a bright future.
Between 5 and 15 years
During this stage, you will have to take care of child’s admission into school, tutoring, healthcare, day-care, and other related expenses. As your child grows, her talents and interests will also come to the fore. Career planning will require timely economic support. With periodic pay out options of child plans, such short-term expenses can be easily met.
During these years, if your child develops a special talent, such as acting, singing, and playing music, and you wish to nurture it further, then special coaching will be necessary. To meet the cost of such coaching, partial withdrawal facility provided with child plans lends a helping hand.
Above 15 years
This is the time where your child has decided her career path, and you as a parent will surely want to do the best in helping her follow her dreams. As college admissions and fees are towering rapidly, your investments should have a maturity amount that is adequate to pay-off these expenses. Moreover, the maturity date should be timed wisely. Setting a target date for child plans and savings plans is as crucial as choosing the investment amount. Otherwise, you may fall short of funds and be forced to avail educational loans or similar borrowings.
Life is unpredictable; no one can foretell any unfortunate events that may befall you, and god forbid, separate you from your child. To make sure that her education and basic expenses are met in your absence, child plans come with Family Income benefits. Under this benefit, your child will receive certain amount from the total sum assured each year. Moreover, insures also offer funding of premium or premium waiver benefit to settle the remaining premiums when you are not around anymore.
Thus, Child Plans are an essential part of financial planning for child education. So why not promise your child a bright future by investing in one today?