If you have a newly born child or a few years old, then investing in a child insurance plan won’t sound like a great idea to you as the child at present is free from liability and dependency of others. But this does not mean that you ignore the importance of securing your child’s life with a life cover. A child insurance plan is a plan that not just covers the child’s insurance factor but also works as an investment to support his future. As a parent you must have dreamed for your child to have certain education, when your child grows-up he/she will too have some ambitions and goals.And to accomplish all of these you need a good corpus, in building to which a child insurance plan plays a major role.
A child insurance plan takes into account various factors related to the child’s future like the cost of education in country, in abroad, inflation, etc. The rising cost of education is the major cause of worry for every parent. Moreover, life can be uncertain and one needs to make sure that the child’s future does not get compromised at any cost in your absence. A child insurance plan takes care of all such factors and more.
Here are few important benefits of investing in a child insurance plan at the earliest.
- Secured future goals – Today majority of the income of every parent goes into paying-off fees of schools and colleges. The better the university the higher is the fee. No parent would compromise on the quality of their child’s education as his/her future depends on it. In case the child wants to pursue MBA or higher education in abroad, then the cost hikes up even further. A child insurance planif bought factoring all such points can be useful in funding the child’s education without causing financial burden on parents.
- Helps in medical emergency – Life can be uncertain at times, and the current pandemic is the biggest example of how prepared one should be to face the unknowing illness. In case your child needs to be treated or hospitalised due to certain illness or mishap, then a child insurance plancan work as a financial cover to where you are allowed to withdraw a lump sum amount and ensure that the child gets proper medication.
- Secures financially in the absence of parent – Death is inevitable, and one should be prepared to face this truth. As a parent it should be your first priority to secure your child’s future even in your absence. A child insurance plan will extend financial support to support your child’s future plans. The beneficiary will receive a lump sum amount and will have no burden to pay premiums.
- Provides income security to your child – In case your child wants to pursue career in performing arts like acting or dancing then there are chances that the income will hike significantly at some point. At such a point a child insurance plan works as a smart investment plan.
- Proves to be thoughtful investment – While buying a child insurance plan one needs to be mindful and factor in all the points that are related to your child’s future. The corpus you select shouldn’t be less than needed and at the same time premium amount should be within your income range. Make sure you think well and take a wise decision.