Child Insurance Plans: Best Purchased when Kids are Still Young

Child insurance plans started at your kid’s young age provide a secure future and timely financial assistance for higher education, marriage, etc.

Successful parenting comes with its own set of challenges, with skillful financial planning for the child’s future being one of them. As a concerned parent, you may be on the lookout for a solution to secure the career and future of your young child. You need to start at the right age with regular investments to accumulate adequate savings; especially for the purposes of higher education which can be quite costly. Insurance companies have offer suitable solutions help you accumulate the adequate corpus to fund the child’s education. How do Child Insurance Plans Work?

  • Child plans serve the dual role of helpful investment tools and insurance products.
  • Insurance component: In case of death of the insured parent, the insurance company funds the premiums such that the planned corpus is accumulated and the child’s future is secured
  • Investment Component: Child insurance plans create a fund of the desired amount to be drawn upon at regular intervals to cater to multiple needs such as education, marriage etc.

Starting Early is the Right Way

Hypothetically speaking, if you are bringing up a 5-year-old; 10-15 years later, education costs like course and hostel fees, travelling expenses, etc. will be much higher considering the average inflation rate. Given this, you may want to consider adequate suitable child plan that will provide for such expenditure in future. The same rings true for your child’s marriage expenses, costs of setting up home, financing a startup, day-to-day future expenses till his/her earnings start, etc.

Most child plans provide smart maturity benefits by the time your child turns 18. By starting on a plan early, payouts can be made available at important milestones to fund urgent financial requirements.

Importance of Buying Child Insurance Plans

The following table explains why it is essential to invest in a child plan at the earliest.

With Child Plans

Without Child Plans

Secure the child’s future without any concerns of financial losses

Child’s future gets affected in case you lack funds / resources at critical life milestones

Better education, both in India and abroad

Higher studies at the institution of choice may be impacted in the absence of adequate savings

Financial and day-to-day needs of the child are met even if the insured is no more

Child becomes dependent on external financial aid after the insured expires

Future planning for marriage costs are taken care of beforehand

Marriage expenses may become burdensome without prior investment plans

By providing appropriate financial protection through child plans, you can be assured of giving your child the best in life even if you are not around. So, are you ready to buy one such plan and focus on the other aspects of your child’s development?

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