Opting for a Child Plan: The best way forward

Ofcourse your child has his/her own dreams for the future; and as a parent you always want the best for your children. Right from the time they are swaddling in their blankets to blazing the race track on sports day, you always want your children to achieve the hopes and aspirations they might have played out in their head. You want them to be successful, be good citizens, be well-educated and carve a memorable career for themselves and ensure they accomplish everything they sought out to attain. However, in order to ensure these dreams come to life, it is vital that you start planning at the right time to meet the financial goals attached to these dreams.

The truth of the matter is that unless you have a definite plan in place, merely saving and investing in an ad-hoc manner may not always serve any purpose.So, if you are ready to kick-start your financial planning, we have got you covered! As a parent, one of the best ways you can mould a desirable future for your child is by investing in a child insurance plan. By investing in the right child plan that is specifically designed to address your child’s education needs, you can help them achieve their dreams. Additionally, with a child education plan in place, your child may benefit from comprehensive preparation and protection as well. Let’s take a look at some of the many benefits which investing in a child plan can bestow upon your child:

1.Helps plan for your child's higher education

First and foremost, investing in a child education plan equips you for a future where you can afford to pay for your child’s dream education. No matter what, you always wish the best for your children. However, the reality that faces every parent today is that besides dealing with the exponential increase in educational costs, the cost of living expenses in raising a child is also getting out of hand. As your child grows, it may put you in a financial predicament if you’re not prepared.

Having a child plan thus, helps reducing your financia burden allowing you to afford future expenses, making their journey into the future a welcoming prospect! By investing in a child education plan, you can start stashing away money regularly to help achieve your child’s educational needs at key educational milestones in their life. The amount you stand to receive would be sufficient enough to cover the fees for their higher education and even admission into a foreign university.

2.Security – to ensure your family is financially protected

child education plan not only helps you save towards the cost of your children’s education but also ensures that your family is protected at the same time. By providing a lump sum payment to secure their future if the worst should happen to you, you are handed the peace of mind of knowing that your child’s future is in safe hands. Investing in a child plan thereby provides the assurance that your child’s dream is protected, no matter what happens.

3.An array of Tax Benefits

child plan comes packed with a wide range of tax benefits as well. Premiums paid are tax-exempted under section 80C (up to Rs. 1,50,000) of the Income Tax Act, 1961. Moreover, all payouts received at the time of maturity are also tax-exempt under section 10(10D) of the Income Tax Act, 1961

4.The benefit of extra protection available

If you're looking to enhance your protection further, you even have the option to add additional riders to your existing child plan. For instance, by opting for the accidental death rider, you can extend the protection cover for your family, god-forbid you happen to meet with an accident leading to your untimely demise. It can also be extended to cover specific illnesses or permanent disability caused by an accident.

Then there’s the waiver of premium thanks to which, all future premiums will also be waived off thus ensuring that the burden of paying the remaining premiums doesn’t fall upon your family either. Opting for riders thus ensures that nothing will stand in the way of your child fulfilling their potential.

The Bottom Line

As much as we all want to, we can’t wrap our child in a protective cocoon at all times, but by investing in a child education plan, we can start protecting him/her from the unexpected complications that life may bring. Afterall, nothing must come in the way of our children dreaming of the future they deserve!

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

AN May 84/18
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