Your children mean the world to you, so it is only natural that when it comes to their future, you would want to do everything you can to secure it. In all likelihood, you have planned well for their future. But, given the rising cost of education and inflation rates, there’s no telling if that planning will be adequate.
It’s because of this uncertainty that protection is not just about a robust savings plan, but also includes a life insurance plan, designed specifically for children. You can take care of your children’s present and future needs by gifting them a Child Insurance Plan.
- What is a Child Insurance Plan?
Children have emotional, educationa[SN1] l, social and financial needs that, as parents, you must not ignore. These needs multiply and diversify as they grow up. You would undoubtedly have thought numerous times about your child’s future financial needs and worried over not being able to meet them. A child insurance plan takes this burden off your shoulders.
- How does it work?
It’s tough but not impossible to calculate precisely how much you will require to meet the various needs of your children at different stages of their life. An MBA degree in India costs anywhere from Rs 6 lakh to Rs 15 lakh today! Can you imagine the cost in next 10 years?
A child insurance plan will not only take care of this cost but will also ensure the costs of higher education are met even if you are not around anymore. A child insurance plan will act as a financial guardian by paying out the insured sum of money to meet your children’s needs and crossing milestones like education and marriage.
Related: [SN2] How does Life Insurance work?
- Why Child Life Insurance?
- Beats inflation: The first and foremost benefit of child life insurance is that you know that the financial burden of your children’s education, marriage, and various other momentous occasions is taken care of, no matter how much inflation inflates it.
- Integral part of a saving plan: Saving for your children is extremely important, but depositing money in a savings plan at regular intervals will only earn you a fixed return that will not suffice to meet your children’s needs in the long run. A child life insurance plan is much more reliable than that.
Related: [SN3] How to get started with financial planning
- Insurance benefit: You wouldn’t want your children’s aspirations to remain unfulfilled just because you are not around, would you? It thus is a great relief to know that even after you are gone, your children will not only receive an insured sum of money, but will also get the accumulated value of the future premiums that the insurance company pays on your behalf, which can quicken the process of them becoming financially independent.
- Additional benefit: Some child insurance plans also provide a guaranteed yearly income to your children for the rest of the premium paying period in case of early death of their parents.
As demonstrated above, a Child Life Insurance Plan can secure the financial future of your child, so you don’t have to worry about them not having the funds to have a fulfilling life.