Meeting the rising cost of your child’s education is one of the most important financial commitments parents have to make these days. You need to plan your children’s future needs as soon as possible. Here, a child insurance plan is 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 popular.
Its popularity has increased significantly due to rising inflation, which mainly affects the cost of education. Every parent wants their child to have a great career, a dream marriage, and many other needs that children have from time to time. Although a child’s future is always considered secure in the presence of their parents, in their absence they may face many problems.
To avoid such situations, it becomes important to invest in a child’s plan, as it not only helps your child achieve his dream but also avoids the obstacles in his life in your absence. also helps remove In the event of the sudden death of their guardian, a child plan will ensure that the children receive financial support until they are recognised as legal adults.
Compared to life insurance plans, these plans are more affordable and quite similar to an investment plan. The only significant difference between the two insurances is that in a child insurance plan, parents begin investing from the child’s birth and withdraw the savings when the child reaches the age of majority.
These policies ensure a structured savings mode for your child’s future, and any returns you get on these schemes are tax-free. So, don’t worry about taxes. If we talk about India, most of the life insurance companies in India have their own children’s insurance products. You should always choose a plan after doing a thorough market study.
Plan for Child Insurance
Insurance firms in the country provide these types of child plans. A child insurance plan comes with both insurance and investment elements to the policy. As a guardian or parent, you can plan dates and amounts for future payments to your child. Child insurance plans are further divided into sub-categories such as regular premium plans and single premium plans.
Benefits of the Child Plan:
A child’s plan includes several benefits. At the end of the policy, the child can also become insured under the same plan. Here are some of the benefits of buying a child insurance plan.
The insurance company will pay a fee up to a certain amount for the child. It is provided after the death of the parent or guardian who was providing the necessary school supplies for the child.
- Funding for the interest of the child
If your child is interested in certain hobbies, he is encouraged to pursue them to completion.Sometimes these interests can be costly, and your child may be forced to give up his hobby.In this case, you get much-needed help from your insurance provider.
Other benefits of this plan include coverage for child marriage expenses in a volatile market and higher education for the child.