Monday, September 10, 2018

Benefits that come with a Child Insurance Plan – Find them out

child insurance investment
A number of responsibilities and joys mark the beginning of a unique journey for a new parent. Parenting remains shrouded by challenges and at times it seems to be an uphill task. Successful parenting is all about nurturing the child and bringing him up to be a responsible and honest individual.

A parent is always concerned about brightening the future of their child. Security is one word that remains associated with your love for the little one. Right through the initial stages of growth, a child needs financial security. That’s one reason why financial planning is so necessary for securing your child’s future. You must identify the financial needs pertaining to your child’s education when the time is right and you actually feel the need to plan things. You’ll even need to allocate a portion of your savings for his college fees, professional courses and boarding charges among other things. It’s truly crucial for you to make your investments on a timely basis. A number of child education plans are now being rolled out by some of the most eminent insurance providers in their attempt to retain policyholders. A child education plan is also a good way of luring investors that keep an eye on the tax exemptions.

Child Education Plans Offer Benefits that Secure the Future of a Child:

Paying off College Expenses with the Maturity Benefit

Parents often want their children to grow up as successful professionals in the field of medicine, law, architecture, and engineering. In order to become a successful professional, it’s necessary for your children to pursue some professional courses in any of these areas. However, it has become increasingly difficult for you to meet all the expensive course fees for a long duration. You may even be compelled to apply for a children’s educational loan that meets the needs of fulfilling your child’s higher studies. The college fees may be inflated but the investment corpus accumulated during the maturity of a child insurance policy can be substantial if you aren’t wasting any opportunity of investing in such plans.

Escaping Deduction of Capital

The return on investments tends to vary with the fluctuating marketing conditions. You must consider adopting some dynamic allocation strategy for funds if you wish to make the most of your vested amount and keep capital erosion at bay. Certain privileges are offered under child plans in the form of Systematic Transfer Plans and Fund Selection benefits. These benefits enable you to make an investment planning according to your expected outcome through the various stages of your life. With an STP, you can even make the most of market fluctuations by transferring all of your fund units automatically.

Choosing Optional Riders

With some plans, the nominee of the insured person is entitled to achieve a waiver for the entire premium that’s to be met during the coverage tenure. Likewise, certain riders are developed to cover the insured if he suffers from a severe injury or ceases to exist during the policy period.

Meeting the School Fees

About 10% of the sum assured is to be paid by the insurance provider as soon as the parent opting for a child plan passes away. Again, till the end of the policy period, 10% worth the sum assured is supposed to be paid out towards the child’s education periodically every year.

Alongside a lucrative maturity benefit, certain comprehensive life coverage benefits are also offered under a child education plan. Compared to a few distinctive investment plans, there are a few unique advantages of investing in child education plans. While applying for a child insurance plan, you must check out if it yields adequate returns for securing the future of your child. Once you narrow down your choices, there’s nothing restricting you from securing your child’s future.

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