Today, many modern parents purchase a child insurance plan to secure their beloved’s future. But is it a worthy investment, or can you avoid buying a child insurance plan? Read on to find out.
As a parent, one of your most important goals in life would be to save for your child’s future. You may want to give your child the best education, lifestyle, and opportunities to build a rewarding future for themselves. You may even postpone your own life goals to fulfil your child’s needs.
But you need not give up on your aspirations and goals for your child’s sake. Instead, you can plan your finances meticulously to secure your child’s future, accomplish your personal goals, and enjoy your life. How is that possible, you may ask?
Yes, it is very much possible. The best way to secure your child’s future is to purchase a child insurance plan. But some may believe that it is better to buy a term insurance plan for security and invest in mutual funds for wealth accumulation.
So, what should you do? Should you avoid buying a child insurance plan, or should it be an indispensable part of your financial planning? Let us understand why not investing in a child insurance plan could be a costly mistake.
· Premium waiver benefit
All child insurance plans offer a premium waiver benefit. In the event of an unfortunate incident like the parents’ death, the child may be burdened with paying the premium. However, with premium waiver benefit, the insurer waives the future premium, and the child continues to have insurance cover.
· Valuable returns
Today, the insurance companies in India offer a wide variety of child insurance plans. Some of these plans also have an investment component that allows you to invest in different money market instruments and get market-linked returns. This allows you to build a larger corpus for your child’s future.
Thus, with a child insurance plan, you get a life cover and the opportunity to earn returns on your investment. You can use the money to fund your child’s expenses, including school fees, etc., without disturbing your savings.
· Partial withdrawal
Another significant feature of a child insurance plan is that you get a partial withdrawal facility. However, this will be subject to policy terms and conditions. You can withdraw a portion of the funds from your accumulated corpus to meet expenses like paying your child’s college fees or more medical emergencies.
· Leaving a legacy for your child
As a parent, you would want to be a role model for your child and set the right examples for them to follow your path in the future. And one of the best ways to leave a good legacy for your child is to educate them about the importance of saving for the future.
When the child is old enough to understand monetary matters, you can help them understand why they must start saving early to secure their future. This will help them make an informed decision when they become a parent someday.
Thus, with so many benefits of a child insurance plan, you must not avoid buying it. Purchase the best child insurance policy today and secure your child’s tomorrow.