Protect the financial future of your child with a life insurance

As parents, you always want to provide the best to your child. While you ensure their basic needs like food, clothing, education etc. are fulfilled, it is an important responsibility to secure their financial future to take care of their key milestones.
With soaring inflation and interest rates on basic necessities, higher education, marriage etc. one has to be prepared to manage the increasing cost of living. This is where, having a proper financial vehicle helps in building a sizeable corpus for your child. What better than a life insurance plan that provides dual benefits of insurance and savings.
It is one of the safe and secured ways to provide a financial cushion to your child at important junctions of his/her life such as education, marriage, career goals, and so on, in your absence.
Let us look at the benefits offered by a child insurance plan:
• Dual benefit: A child insurance plan provides dual benefits of insurance and savings. It safeguards the various milestones in your child’s life by providing an insurance cover at all times. On maturity, the proceeds can be used for any of the financial needs
• Supports education: Cost of education is rising each passing year. Providing quality education has become a crucial measure for your child’s better future. One should have an insurance plan that assists in fulfilling this goal
• Income Protection Cover: When the breadwinner is not around, income flow is affected. Many child insurance plans offer you regular pay-outs in installments as well as lump sum amount. This can help replace your income and makes sure your child doesn’t suffer
• Waiver on Premium: Child insurance plans come with a waiver of premium feature. This ensures that in case of the proposer’s death, all the future premiums will be waived and the policy remains inforce. So, in case of the unfortunate insured event, your child is entitled to the product benefits.
• Tax benefits: You may be eligible for income tax benefits/exemptions as per the applicable income tax laws in India, which are subject to change from time to time.
The bottom-line
An insurance plan that specifically focuses on building a robust future for your child is the simplest and smartest way to help them be independent and financially secure. Having a child insurance plan can be viewed as a safety net, as it allows you to create a corpus that can be used to secure the future of your child financially, during an uncertain life event.

Related Articles

Back to top button