How Child Plan Helps You Plan For Your Child’s Future?

As parents you give your best efforts so that your children can have the best of everything in life whether it is best schooling, best lifestyle, higher education, marriage and many more till they become fully independent. Higher education and marriage of the children are the most important goals that every parent wants to achieve in their life. 

Planning for building an investment corpus is necessary for  higher education costs and marriage of the child in future. Building an investment corpus is not sufficient along with that you also need to protect your child's financial future too for that you need to purchase Child Plans provided by Life Insurance Companies. 

Child Insurance Plans not only help you in creating an investment corpus but also provide your child with a financial shield during difficult times. Child Insurance Plans are Life Insurance Plans often come with an additional benefit called 'Waiver of Premium'. 

In this article we will explain some important features of Child Insurance Plans which you should consider before taking any plan for your child betterment. 

How Child Plan Helps You Plan For Your Child’s Future?

Following are some of the notable features of child plan which help you in planning for your child’s future in a systematic manner - 

• Waiver of Premium

  Child Insurance Plans provide waiver benefits to you under which your child will get regular payment from the maturity amount in case of unforeseen situations such as demise and the wholesome assured amount is paid at the time of maturity. In case of demise of the insured, the policy will not end until maturity and premium charges will be paid by the Insurance Company. 

• Premium Payment Mode

  Child Insurance Plans offer you the flexibility to choose among premium payment modes. It depends on you  whether you want to pay a single lump sum premium or  
  regular premium which includes annually, half-yearly, or quarterly. 

• Partial Withdrawals

  Child Insurance Plans offer you the facility of Partial Withdrawals. Under this facility, you can enjoy a number of withdrawals from the fund value depending upon the requirement of the child whether it is for college fees, marriage or medical illness. 

• Funds Choice

  Unit-linked Child Insurance Plans gives you the flexibility to choose among different funds options in which you want to invest according to your requirements. Child Plans offers you different types of funds such as hybrid, debt, equity, dynamic fund allocation, etc. 

• Loan Benefit

  You can avail secured loans benefit on child education during the policy tenure under Child Insurance Plans. 

• Maturity Benefit

  The ideal Child Insurance Plans offer maximum maturity benefits on the premiums paid in case of unfortunate events or during financial circumstances. 

• Tax Benefit

  Under this benefit, Premiums paid during the policy tenure are applicable for tax deduction under Section 80C. Tax Benefits on demise and maturity claim are available under Child Insurance Plans as per prevailing tax laws. 

• Riders

  Child Insurance Plans offer you some specific Riders that can give you more out of the policy. Specific Riders are critical illness, premium waiver, accidental death and disability. The premium waiver benefit is already added with your plan. 

Conclusion

Nowadays, there is a wide variety of Child Plans available in the market. It is a tremendous task for you to choose best among those plans to provide best financial security to your child in future. Child Insurance Plans help in creating wealth which helps you meet the rising cost of education. Benefits avails depending on the policy you purchase. These plans offer financial security to your child in any circumstances. Consider the above mentioned features before buying any Child Insurance Policy. 

Also Read: Top 4 Things To Do As Soon As You Become A Parent

What is a Child Insurance Plan?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.