To meet the rising cost of your child’s education is the most significant commitment which parents have to make financially in recent days. You need to plan the future requirements of your children as early as possible. Here, child insurance plans are one of the best weapons to fight against price hikes. Buying such a plan is worth it, and in India, affordable child insurance plans have always been famous.
Its popularity has risen significantly because of the increasing inflation, and mainly, it affects educational cost. Every parent wishes to fulfill their child’s dream of a perfect career, dream wedding, and several other needs that children have from time to time. Even though a child’s future is always considered to be sure and safe in their parents’ presence, they could face a lot of troubles in their absence.
To avoid such circumstances, investing in a child’s plan becomes a must, as it not only helps your child fulfill his/her dream but also aids in overcoming any obstacles in their lives in your absence. In case of their guardian’s sudden death, a child plan will ensure that the children will receive financial support until he/she is legally recognized as adults.
As compared to life insurance plans, these plans are more affordable, and it is pretty similar to the investment plan. The only significant difference between both insurances is that in a child insurance plan, the parents start investing in the child plan right from childbirth and withdraw the savings when a child achieves adulthood.
These policies ensure a structured saving mode for your child’s future and whatever return you will get on these schemes are tax-free. So, don’t worry about taxes. If we talk about India, most life insurance companies in India have their child insurance products. You should always select a plan after doing the thorough market study.
Child insurance plan
Insurance firms in the country provide these types of child plans. Child insurance plan come with both insurance and investment elements for the policy. As the guardian or parent, you can plan out the dates and amount for future payments to your child. The child insurance plan is further divided into subcategories like Regular Premium Plan and Single Premium Plan.
Benefits of Child Plan:
Several benefits are included in the child plan. At the end of the policy, the child may also become the insurer of the same plan. Here will discuss few benefits of purchasing a child insurance plan.
- Provision of school fees
The insurance company will pay the fees up to a certain amount for the child. This is provided after the parent or guardian’s death, who was providing the school essentials for the child.
- Funding the child’s interest
If your child is passionate about particular hobbies, he/she is encouraged to pursue them till the end. Sometimes, it may happen that these interests could prove to be costly, and hence, your kid has to give up on his/her passion. In this case, you get much-needed support from your insurance provider.
And the other benefits you may achieve from this plan are the child’s wedding expenses, meeting the unstable market, higher learning of the child.