5 Reasons To Purchase A Child Plan

Child insurance plans are a blend of life insurance and an investment tool which helps you in building up a corpus to financially secure your child’s future. As a parent your first priority is to protect your child’s future and provide him with the best facilities and child insurance plans are a good way to create a corpus that will help you provide your child with best facilities and fulfill his/her financial requirements.

5 Reasons To Purchase A Child Plan

Below mentioned are 5 good reasons why you should consider to purchase a child insurance plan.

1. Helps In Financing Your Child's Education

Education is the greatest gift that a parent can provide to their child. Quality education, however, is expensive in the time that we live in today. In fact, putting your child in a good school will never be cheap as the cost of extracurricular sports, field trips, etc. adds up to a considerable amount. A market-linked investment strategy would help you generate higher returns by keeping your portfolio inflation-proof. If you plan in a child insurance plan that matures at a specific time you will be able to finance your child’s higher education expenses as well.

Read More: Things You Must Know About Child Insurance Plans

2. Helps You Finance Your Child’s Marriage Expenses

As discussed earlier that child plans are investment cum life insurance plans i.e investing in a child insurance plan can help the parents to fulfil their child’s future needs such as marriage expenses. Marriages are quite expensive to carry out and every parent wants that their child’s most important life phase i.e. his/her marriage is celebrated with utmost joy. With the help of maturity benefits amount receivable upon the maturity of the policy can be used for your child’s marriage expenses.

3. Helps You Support Your Child’s Dreams

Child insurance plans are a great type of life insurance plan that helps to ensure that your child’s future is secured by helping them achieve their goals and aspirations. Child plans help the parents in saving and creating a corpus to fulfil their child’s future financial requirements. You can help your child fulfil his/her entrepreneurial dreams by investing in life insurance child plans that will provide financial backup when the time calls for it. With the help of this plan you help your child kick-start his/her career.

4. Collateral For Loans

If you want to take education loan or personal loan for your child’s higher education expenses, banks accept child insurance plans as collateral for loans. This way you can avail loan to finance your child’s higher educational expenses.

4. Tax Benefits

The premiums paid towards child insurance plans qualify for tax exemption under Section 80 C of Income Tax Act, 1961. The maturity benefit receivable under child plan also qualifies for tax exemption under Section 10(10D) of Income Tax Act, 1961.

Must Check:

Features of Child Life Insurance Plans

List of Top 5 Child Plans In India 2021

Conclusion

Investing in a child plan is a wisest decision a parent can make because this type of life insurance plan helps you ensure that your child’s financially secured future. With the help of a child plan you can financially plan to fulfil your child’s future financial needs such as higher education, marriage expenses or even help them achieve their entrepreneurial dreams.