The joy of being a parent is the joy of all joys for both you and your family. However, this bundle of joy comes with several responsibilities and duties as a parent, financial care being one of them.
However, the ever-rising costs of expenditures can prove to be a deterrent to your plans. Early savings to build a corpus is a prudent thing to do. This can be achieved by investing in a child plan.
A child plans offers dual benefits of insurance as well as investment. It can take care of your child’s needs in your absence too. The lumpsum received at maturity can be utilized for your child’s education or marriage expenses. This pay-out is at least 10 times the amount of premium paid.
There are several long-term and short-term benefits of availing a child plan; few of these are listed below:
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.
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.
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.
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.
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.
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? These plans can be purchased for a child as young as 14 days old, with the policy term varying from 15–25 years.