Actor, pilot, doctor or architect? Secure your child’s financial future today!

Child's Future

What do your children want to be when they grow up? Whether your child has showcased a mega interest towards becoming a doctor or alternatively, looking to etch a career as an architect, parents are always keen to find out where their child’s strengths and interests lie.

All parents hope that their child can get the best possible childhood along with a safe and secure future. As children grow up, so do their dreams. For instance, if your child initially harbored ambitions to become a pilot when he was five, maybe now his inclination lies towards becoming an actor instead. Whatever your child’s dreams maybe, as a parent you want the best for your children. Further, wouldn’t you like your child to have ample of opportunities along with the chance to develop every bit of potential they have?

Be an early bird

Today, the truth of the matter is if you’re looking to enroll your child into a decent school, then a college and thereon a management b-school, whether in India or abroad, is going to prove to be outrageously expensive. The cold-hard fact is that these costs are here to stay and they are going to be unavoidable in the near future as well. So by the time your child comes of age, unless you’re financially prepared, be ready to be hit by some rude financial shocks. Moreover, today, a lot of parents also wish for their children to study abroad for the benefit of emancipation as well as the cultural diversity experiences it bestows upon them. Here lies another conundrum – unless your child scores a scholarship or you hit a jackpot overnight, the reality is that it’s going to be incredibly hard to keep up with the rapid level of inflation of education as the years go by.

Of course, we all want to do as much as we can for our kids and having a child should never impede such a prerogative either– there are always counter-measures you can take to overcome such obstacles. So, what should you do to ensure you can give them the best possible future they deserve? You need to prioritize saving for your child’s education now. In the wake of such developments around you, it’s but natural to get a bit overwhelmed and uncertain in the scheme of things. Don’t be surprised if you get caught up in the moment and start wondering when and how to start the financial planning process in order to ensure that you have a sufficient enough financial backing for them.

Although, ideally you should have started saving for them as soon as they were born, the good news is that even if you haven't started already, it's never too late – what is important is to get started and keep going. The best gift you can give your child is a secure future. Whatever your child's future ambitions may be, now you can make them come to fruition with the help of an investment in a child plan.

Child Plans: An Investment for the Future

Without a doubt, the cost of children's education is a big worry for many parents nowadays. Right from Kindergarten to securing a good enough college, the cost of education is on the rise. The numbers are truly eye-opening, especially considering that these costs generally don’t include the extra school fees, books, supplies, special interest classes, equipment, private tuition, and transportation. One common theme that all parents can unanimously agree upon is that help is always welcome especially when it comes to their children. By investing in a child plan while your child is relatively young, undoubtedly you’ll be in better shape when he/she is ready to head off to college.

Life is unpredictable. Have you ever wondered what would happen to your children if something untoward were to happen to you? If your answer is no, you may want to consider investing in child plan. Investing in right plan will help shield your children from this uncertainty. It will provide you with the peace of mind by knowing that your children’s financial future will be secure.

Besides, a child plan comes packed with an array of tax benefits as well. Premiums paid are tax-exempted under section 80C (up to Rs. 1.5 lakh) of the Income Tax Act, 1961. Additionally, it also yields tax-exempted income when the maturity claim/death benefit is paid under section 10(10D) of the Income Tax Act, 1961.* 

The Bottom Line

Bringing up a child can be extremely fulfilling but it also brings with it, several new responsibilities and financial obligations. Today’s world is a hyper-competitive place and to ensure that your child makes an inedible mark in the world, it’s vital that you take necessary action.

Disclaimer: Taxes are subject to change as per tax laws.

AN May 82/18
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