Why Should You Invest In A Child Insurance Plan?

Jun 02, 2018 | 6 months ago | Read Time: 3 minutes | By iKnowledge Team

As parents, nothing brings us more joy than seeing a smile on the faces of our children. Cliché as it maybe, we always want to protect our children and make sure their futures are safe and secure no matter what happens. A key to that security is ensuring that their financial needs and future are rock-solid. It doesn’t matter if your child is a day old or 5 years old, it is never too late or early to think about securing their financial future. With the uncertainties of the market and life, one of the most secure ways to do so is to invest in a child insurance plan, as this is one of the few ways whereby you can make sure your money is invested and insured for the future of your children. While it may seem daunting to start thinking about your child’s financial future the minute he/she is born, as parents we need to understand that investing into a child insurance plan is critical in securing the bright future of our children due to several reasons:

Investment in your child’s education

One of the biggest worries, given the consistent rise in prices of education, especially higher education in India and abroad for parents is: how will we pay for your child’s education? It is no secret that the cost of private and higher education in India is skyrocketing and we as parents only want to send our children to the best of schools, colleges and tuitions.

According to a report by the National Sample Survey Office (NSSO) average private expenditure for general education has increased by 175% to over Rs. 6,788 per student, while the cost of professional and technical education has increased by 96% to Rs. 62,841 per student. In Delhi itself the cost of general education has increased three-fold since 2009. This makes one thing clear: no matter what field of education or training your child decides to peruse the cost of the same is likely to be substantial.Average Expenditure of Education in India

 

To make sure that majority of your savings are not drained, leaving you nothing for a rainy day or for retirement, it is a necessary to invest in a child education investment plan. Child insurance policies lessen your financial burden as they involve a long-term plan for your child’s future. Due to this, once the plan matures and your child gains adulthood, he/she can use the sum of the plan for their education. The policy is a great financial planning tool which secures your child’s long-term future without increasing the burden on you exponentially.

Protection against medical emergencies

As parents we never want to think about your children’s ill health, however, the reality is that sickness and accidents are a part of life and we want to secure our children in case something like that ever happens. Child insurance plans allow you to withdraw sums of money in case of hospitalisation or big medical emergencies from a plan that is not yet mature, which can then be used to pay for any necessary medical treatment. The policy is especially important for children with family history of serious illnesses.

Unexpected demise of a parent

Unanticipated death of a parent is undoubtedly one of the hardest things for a child and to ensure that your child’s future is secure, child plans are very helpful. Upon the death of a policy holder, the insurance company provides a policy premium waiver to a child or beneficiary, which means they will get a lump-sum after the death. All premiums for the policy are then waived, however, the company continues to invest money for the policy holder which ensures the child receives money at intervals as specified by the policy. This ensures that no matter what happens you child’s future will be taken care of.

Loan Collateral

Another key advantage of child insurance plans is that they help in acting as collateral for most personal, educational or home loans from banks or other financial institutions. This can be a great advantage when your child wants to take out a loan for his/her education or wants to make a down payment on a new house, as the policy can act as a security for the loan.

Child insurance plans such as iMaximise from Aegon Life are a great financial planning tool and ensure investment for child future. They offer you a long-term investment and savings plan whereby, your money is well invested and your child’s future is secure. What more could someone ask for? While the plethora of investment options can be confusing on how to save and invest for your child’s future, such plans offer you a clear and concise plan about doing so.

Advt. no.: IA/MAY 2018/3984


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