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Secure your child’s future with the insurance plan

Posted on November 29, 2021

Parents will agree that the best gift they can give their children is an education that will secure their future. The very idea of ​​leaving a child without access to one of the best universities or colleges is scary for any parent. However, the “best” colleges usually come at a premium. Investing in a child’s education in India is largely unstructured. In addition, they invest money in general financial products such as term deposits or mutual funds without considering how much they would need to graduate the child. The best way to plan for your child’s future is children’s insurance.

Child insurance, what is it?

A child insurance plan provides a substantial amount of money for your child’s future educational needs. As the costs of higher education increase every year, many parents have to accumulate large sums of money in a short period of time to pay for tuition, accommodation, study materials, project expenses. , school trips, etc. As a parent, you must meet all of your children’s primary higher education needs, but tight financial conditions can sabotage your plans. Investing in a children’s insurance policy that pays for future education costs – so you don’t have to – is a better strategy than rushing to raise the funds at a later date.

What is child insurance used for?

The pension market has been around for decades. With many adults approaching their sunset years, they have secured their future. It is always assumed that a child’s future is secure and protected when their guardian or parents are present, but they could have a lot of difficulty if they are not there.

An investment in your child’s future becomes a necessity to avoid this unpleasant scenario since it will allow him to realize his dreams and overcome all the obstacles in his life, even when you are not there. Financial support for children will be guaranteed as long as they are legally recognized as adults in the event of the sudden death of their guardian.

Children’s insurance plans

Insurance companies offer many children’s insurance packages that can be customized to suit your needs. The general needs of the population have made some of them quite common.

Unit-linked investment plans: This allows you to invest in both debt and equity products. High risk stock products have a higher percentage of the amount, but this is precisely what gives a higher return on investment, which makes it a smart move for your child.

Unique-Premium Insurance plans: Often times, parents don’t want the stress of remembering dates and putting money aside for bonuses, so they refuse to end up with an annual payment. In such situations, you might even be able to get discounts on a single large payment.

Children’s endowment plans: The company decides which debt products to use with your investments. Although it does not generate good returns, your money is guaranteed to be safe because the risk is low.

Regular premium insurance plans: Parents often choose which benefits their child will receive and forgo others. Plus, they can pay monthly or quarterly premiums rather than annually. In addition to being suitable for many people, these payment cycles come with a variety of benefits depending on the schedule.

Can you tell me what child insurance is?

By paying for your child’s education, the child’s plan protects their educational dreams.

If your child is given the right education and the right tools, their career will flourish – and a plan for the child gives them the academic foundation they need.

You don’t have to worry about taking on expensive student loans or using your savings to pay for your child’s education.

When the child turns 18, your child’s children’s insurance plan begins to pay. One of the main advantages of this plan is that it pays the child whether or not you are present. For example, in the event of death, your insurer would stop collecting all future premiums while keeping the insurance policy active. Benefits such as payment, for example, would continue to be paid. So, whether you are present or not, your child’s career is protected by the child plan.

Childrens insurance plans in India offer maturity and death benefits, waiver of premiums, flexible and prompt payment options, and affordable premiums. Payment can be scheduled for specific intervals if desired. Choosing a reputable provider and using an online premium calculator will help you decide how much you need to pay for your policy each year.

It is possible to buy market related children’s insurance policies. As the corpus grows due to exposure to debt and stocks, but staying invested for longer periods of time (i.e. getting the policy when the child is a child) will result in greater growth.

The child is not prohibited from using the sum insured solely for educational purposes within the framework of the child plan. They can, for example, use the money to finance a business idea.

Investing in education ensures a bright future. You need to make sure that the child goes to a good school and college, no matter what field or career they choose. India being a developing country, children have a huge impact on the future development of the country. Education can help achieve all of this. Education opens the door to financial security and allows children to develop an open mind and live in a more balanced way mentally and physically.

You can use children’s plans to secure funds for your children’s future needs. Several modern policies offer several features that allow you to grow your investments and provide funds for your children’s education. If you regularly invest small amounts rather than a lump sum, you will avoid the burden of a large investment. As a result, children have access to a significant amount of money once they are ready. To make your children’s dreams come true, invest in a strong financial plan today.

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