As a responsible and proud parent, you could only wish the very best for your child. This includes providing everything that your child requires to grow further in life. Financial responsibilities towards your child’s future could seem endless – be it their education, marriage, purchasing a vehicle/dream car/bike for them, buying a house, helping them with their entrepreneurial goals and any other aspirations they could have.
It’s normal for a parent to do everything it takes to guarantee financial protection to their child and ensure a safe future for them. A powerful way to secure their dreams is by investing in a suitable and all-inclusive Child Insurance policy.
What is a Child Insurance policy?
A Child Insurance policy refers to a plan that gives you the chance to particularly invest for your child’s future. A Child Insurance Plan is a great way of investing towards a corpus as it guards the future of your child in the event of any uncertainties. A corpus is a large sum of money that you accumulate over time; in this case, for your child’s future.
Here are some advantages of investing in a Child Insurance policy:
A Child Insurance policy guarantees to provide a pre-decided sum of money to your nominated child in the event of your unfortunate demise, provided you are the investing parent. The amount your child will receive can be put to use towards their education, their marriage or career/entrepreneurial goals. This makes a Child Insurance policy important from every point of view.
There are a few child insurance plans that provide you with an inbuilt premium waiver benefit. How does the premium waiver benefit work? Well, in the unfortunate incident of you not being around, your family will not be forced to pay any of the premiums. This makes it one of the most significant features of a Child Insurance policy - to know that your child’s future is secured with no worry about the burden falling on them.
Here is something important for you to think of - while taking up a Child Insurance plan, you must always decide on a maturity date after much thought and planning; this ensures that the payout is received just before it is required. The payout also can be used for sudden expenses that arise. For instance, if you believe that there will be a need for money for college fees when your child turns 21, then the maturity date you need to choose must be at least 6 months before your child turns 21 years of age. You could also plan for their marriage and other expenses similarly.
An additional benefit to you as the policyholder is that you can enjoy tax benefits under Section 80C on premiums you have paid, up to a maximum amount of 1.5 lakhs. Further, the maturity or death benefits received from these policies are tax-free as well. Child Insurance policies also help you as an investor in developing a habit of disciplined and regular savings for your loved ones.
All these advantages make Child Insurance plans an essential requirement and a great investment for your child’s future. Get in touch with your insurance advisor today to help you choose the right policy – one that is most suitable for your child and their specific requirements.
BEWARE OF SPURIOUS/ FRAUD PHONE CALLS!
• IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums.
• Public receiving such phone calls are requested to lodge a police complaint.
Tax benefits are as per applicable laws which are subject to change. Policyholders are advised to consult tax expert for better clarification /interpretation.
In Linked Insurance Products, the Investment Risk in Investment Portfolio Is Borne by The Policyholder. The linked insurance products do not offer any liquidity during the first five years of the contract. the policyholder will not be able to surrender/withdraw the monies invested in linked insurance products completely or partially till the end of fifth year. Please know the associated risks and the applicable charges from your Insurance agent or the Intermediary or policy document issued by the insurance company.