For every parent, his child is the foremost priority. We work hard throughout our lives to provide the best facilities for our children. As parents, we want to secure our child’s future and ensure that he or she achieve all his goals and desires seamlessly and does not have to face any constraints. However, we never know when we might encounter an unforeseen and unfortunate event, right? Life is full of uncertainties; therefore, it is imperative to be well prepared to advance so that our child can live a seamless and smooth life.
Investing in a child plan policy is one of the best ways to financially secure your child’s future and give them the wings to achieve their dreams seamlessly.
Let us look at a few reasons to invest in a child life insurance plan.
- Financial security
A child plan policy financially secures you and your child and ensures that you do not face any financial hassle in an unforeseen and untimely mishap.
- Tax Benefits
The premiums paid by the policyholder for the child plan policy are eligible for tax benefits for up to Rs. 1.5 lakhs under Section 80C of the Income Tax Act. However, tax laws are subject to change from time to time.
- Peace of Mind
Investing in a child plan policy gives the parent (policyholder) peace of mind and free from worry when it comes to financially securing and providing the best facilities to his child.
- Increasing Cost of Living
We all know that the cost of living is touching the sky. The cost of higher education, extra-curricular activities, marriage, etc., has all seen a rise. Investing in a child plan policy covers you from the increasing cost and inflation trap.
- Death Benefits
We never know when an untimely and unforeseen situation might knock on our doors, such as the unfortunate demise of the policyholder. In this case, the child might face a financial hassle in the parent’s absence. Investing in a child plan policy provides y9our child with a lump sum amount of death benefit in an unfortunate demise of the policyholder. This will ensure that your child can seamlessly continue with his or her life, even in your absence.
- Covers Critical Illness
In case there is a family history of the critical disease, then it is recommended for you to invest in a child plan policy. In case of an unforeseen and unfortunate event, your child might get diagnosed with a critical illness; the child plan policy will help you cover the treatment cost. This will ensure that you do not face any financial hassle and your child can completely focus on his or her recovery.
- Provision of Loan
An unforeseen situation might arise wherein you might require taking an educational loan or a loan for marriage, etc.
- Investment Benefit
A child plan policy comes with the benefit of investment. Apart from financially security, a Unit Linked Insurance Plan (ULIP) child plan comes with the dual benefit of investment and insurance. One part of the premium is used for insurance and the remaining part is used as an investment in the market as shares, bonds, stocks, equity, etc.
Investing in a child plan policy secures your child’s future and ensures that he or she achieves his goals seamlessly. With child plan policy, you can be at peace of mind and can benefit from tax benefits, loan provision, etc.
While choosing a child plan policy, it is imperative to go for an insurance company that is leading and top-rated.