Surely, you want to give your child everything he/she wants. But this may not always be possible. With the rising cost of living, sometimes fulfilling all their demands may get a little stressful. Dealing with their small time demands can still be handled, but it is important you ensure you are capable of helping them achieve their ambitions. The cost of higher education is increasing by the day, and one can’t imagine what heights it will reach in the near future. Hence, having a proper investment plan in place for your child is very important. And what better option than child plan.
A child future plan forms the best option to stay prepared for the key education years of your child. Child plans ensure you can achieve all the ambitions of your child by offering you the required financial help at crucial times. Following are some of the benefits that child plans in India can afford you –
A regular investment plan for your child – With the constant rise of everyday expenses, it gets difficult to save enough to meet your needs. This however, cannot be an excuse for not saving enough for your child. A child future plan gives you a systematic process to put aside a particular amount for your child regularly. The policy functions like an insurance and wealth enhancement tool, so even in your absence your child will get the required funds to complete his/her education. As per the plan you need to invest a specific amount (premium) towards the policy at regular intervals for a specific period of time. On maturity the amount is handed to the policy holder and to the nominee in case of an eventuality.
Death Benefit – This is a major benefit that child plans offer. Under this benefit the nominee gets the sum assured as the death benefit in case of the unfortunate death of the policy holder. A few plans in the market also offer a percentage of the sum assured at regular intervals and pay out the sum amount at the time of maturity. Also, in case of death of policy holder, the remaining premiums are contributed by the provider. This ensures continued protection.
Ability to select Plan Maturity Date – It is important to have the fund you saved for your child in hand when you really require it. This is why child plans let you select the date of maturity of the policy. So you can either choose to take the money for further education of your child around the time he/ she completes his/ her graduation or after his/ her studies to help them establish their own business, or whenever. But do keep your financial conditions in mind while selecting the maturity date of the plan. It is advisable to opt for a child future plan sooner in life as you have chances to get a good sum assured at lesser premiums.
How a child plan can secure your little one