Life insurance for children ensures that every child has a secure financial future if their parents die. With the best life insurance for children, parents can rest confident that all of their children’s needs will be met adequately. A kid plan will secure the child’s financial future and provide flexible payouts at regular intervals, allowing each youngster to fulfil his or her dreams and reach life’s milestones.
What is a Child Plan?
A child plan is an investment and insurance plan that assists in planning for children’s future financial needs by accumulating cash over time. A kid plan guarantees the payment of a lump sum amount to a child upon adulthood to meet tuition or marriage expenditures.
Child plans that include kid education plans will help you safeguard and ensure your child’s future. A kid policy provides life insurance as a lump sum payout at the end of the policy period. This is not all; such plans also provide coverage for your child with flexible pay-outs at crucial educational milestones.
How can Child Plans support a parent in meeting the exorbitant cost of child education?
A child plan allows you to save money regularly while also building your savings. You may have access to your money at the same time.
Fulfilling Your Child’s Dreams
If you start saving for your child’s education now, the costs will be substantially higher when the time comes for him or her to enrol. However, you won’t have to worry about what path your child will choose with a child plan. He can take any course he wants to be based on his interests and talents. With the money covered by the child plan, he would be able to fulfil his aspirations and professional objectives.
So, start investing intelligently right now. The collected corpus will be adequate to cover the costly tuition expenses at maturity. The child will get maturity benefits after the insurance term to guarantee that his or her ambitions become a reality. You can select from a variety of child plans.
Permits Partial Withdrawals
You can withdraw money throughout the insurance term to pay for a specific course your kid wishes to take, such as studying an instrument or acting, for example. Specific programs provide monthly pay-outs to assist you in covering the costs of increasing your child’s skills.
Maturity Benefit to Meet College Expenses
As you can see, the expense of schooling is increasing at a rate of 10%, which is far greater than the rate of economic inflation. The cost of a B.tech program has been increased from Rs. 90,000 to Rs. 2 lakhs. As a result, it is no less than a requirement to invest in a child plan that will provide adequate cash to assist your child in meeting all of the essential educational milestones in his life.
Fund Your Child’s School Fees
If the parent who purchased the child plan passes away. The insurance company pays a part of the sum insured immediately, and another percentage is paid yearly until the policy term expires. Even if you are not there, the amount paid is sufficient to cover your child’s school expenses.
Avail Income Tax Benefits
The premium paid for a child plan is tax-deductible under Section 80 C, up to a maximum of Rs. 1.5 lakh per year. Section 10 of the Internal Revenue Code allows you to claim tax breaks on the maturity amount (10D).
Protection In Case of Unforeseen Circumstances
One of the essential advantages is financial protection for the kid in a parent’s death. The insured kid receives at least the total amount of the sum covered. Because the maturity amount is nearly ten times the premium cost, the insurance covers higher education expenditures.
Options to Choose Add-ons/ Riders
Even if you have purchased the finest savings plan for your child, you need to supplement it with rider benefits. You can select a kid plan that provides remission of the premiums paid during the policy term if something unpleasant occurs to the policyholder—other rider advantages such as personal accident insurance rider benefit cover-up for severe accidental injuries and accidental deaths are available.
Avoid Loss of Capital
Even your investment results might fluctuate due to market volatility. A dynamic fund allocation plan must be used to make the most of the money invested and avoid capital loss. You may also use a Systematic Transfer Plan (STP) and fund selection to plan your investments based on predicted returns and the amount needed to reach the various milestones. You can use STP to swap to a new fund unit when the market is turbulent.
So, other than being a superb investment strategy, these are the main advantages that a kid education plan may provide. Don’t you want to secure your child’s future right now by investing in one of the most outstanding savings plans available?
How much should you invest in a child plan?
Education is the key to a prosperous future. Whatever path or profession your child selects, your first obligation as a parent is to ensure that they attend a decent school and college.
Given that India is a developing country, today’s youngsters will play a significant part in the nation’s future progress. All of this is possible with proper education. Education can not only help children grow an open mind and live a more psychologically and physically balanced life, but it can also help them develop an open mind and live a more mentally and physically balanced life.
However, the expense of schooling might be prohibitively expensive in other situations. The tuition for private schools and universities is significantly more than public or government schools. Engineering, medicine, and different professional degrees can be considerably more costly.
When these expenditures are included with inflation, the ultimate amount skyrockets, with a restricted salary, it is difficult to meet these expenses.
That is why, with a life insurance policy, you may assure your child’s future and goals are financially secure even if you are not present.
Try our child education plan calculator to calculate the correct amount that you need for your child plan.
Wrapping It Up
It is critical to plan ahead of time for your child’s education. A kid education plan can assist you in being financially prepared for any obstacle that may otherwise jeopardize your child’s career. You may begin by paying a little fee today and be future-ready.