A good education is a foundation for a strong career. Parents aspire to provide best education to their child but we all know how expensive education is getting with every passing year. If we look at the last 10 years, education costs have grown at a much faster pace than consumer inflation.
Whether or not their limited savings would be enough to meet the growing expenses is the common anxiety that most breadwinners of the family face. Uncertainties of life and health aggravate further aggravates the anxiety that parents hold about their child’s future.
Much of these worries can be allayed if things are planned early. Insurance companies offer child plans which guarantee a financially safe future for the child. Buying a child plan is an effective way to calm parent’s anxieties and safeguard the child’s future.
You would be wondering on how a child plan can help. There are two benefits of a child plan which assure that the child’s financial needs are met in all circumstances.1. Death Benefit along with Premium Waiver Rider
In case a parent meets with an early death during the Policy
tenure, the family/ child receives a death benefit and the policy remains in force. Not just that, the insurance company takes up the responsibility for the payment of future insurance premium on the policy.2. Maturity Benefit
The maturity benefit is a guaranteed sum Assured
that the insurance company pays upon the completion of the policy tenure. The maturity benefit can be either received as a single payment upon maturity or as periodic payments at predetermined milestones. These predetermined milestones are essentially those points in time when you expect your child to enter college, pursue further education or get married. These periodic payments will help your child get the necessary funding to meet the expenses related to these milestones.
Remember that just buying a child plan is not going to serve the purpose. It is equally important that you buy a child plan quite early. In fact, the ideal gift on your child’s first birthday would be a child plan
which would go a long way in shaping up a bright and secure future for your child.
The key benefit of buying early being that the annual premium burden becomes much more affordable. So you can look to save a corpus for your child that would be big enough to comfortably take care of his needs even in your absence.