Wanting to provide the best for your child is what most parents aspire to. But with inflation that increases the cost of everything as the years pass by, this aspiration may seem like a steep mountain that cannot be conquered without some additional support. Child plans are the kind of support that you can get for yourself and your child so that their needs are fulfilled without you experiencing additional financial stress.
Insurance for children may not be the most popular form of insurance that you may come across. However, if you are already a parent or planning to be one, these plans can be of significance to you. Depending on your priorities, you can choose from a range of child plans, including the ones focused on education.
Here is a look at five reasons parents should purchase child plans in India.
- Secure future for the child
A child plan is a way to set aside a specific amount of money for your child, which they will receive when it is due. The plans stay in force even in the event of the death of the proposer (the parent). Thus, you can set aside money to provide your child with the future they dream of, and they can achieve it even if you are not there to protect them anymore.
- Shielding the child from payment burdens
Most child plans in India offer a premium waiver feature, either as a rider or a benefit. If you can opt for this feature, you will be saving your child from the possible burden of paying remainder premiums after your demise. The policy will be in effect, your child can avail of benefits, and any remaining premiums will be waived off.
- Helps save taxes
As with most insurance policies, child plans may also earn you some tax exemptions and benefits. These benefits may apply to premiums as well as death and maturity benefits. To see how you can make the most of it, consult the policy provider or your financial advisor.
- Helps create a corpus
Several unforeseen needs may arise in life and catch you off-guard. But with the right child policy, you can plan a secure future for your children. With child plans, you can build them a corpus to utilise when they want to fulfil their dreams. Such plans include death benefits, so you can rest assured that their dreams won’t be hindered even through major life events.
- Helps inculcate discipline in savings
Without a child plan, your savings for your child’s future may not be as regular and well-organized as you would like. On the other hand, child plans in India will require you to pay regular premiums. Thus, you will be accountable and therefore, pay the amount regularly for your child’s future, lest you risk a policy lapse. Not only does this discipline steadily build your child’s future, but it also sets an example for your child and teaches them the importance of saving and wealth creation.
A secured future is one of the best gifts you can offer your child. Therefore, it is best to buy a child plan as early as possible. In doing so, you can opt for a long-term plan and get all the probable benefits of such plans.
