Here's Why You Need A Child Plan Today!
Published On Jan 09, 2022
Parents are always worried about their children. Whether it's their child's health, education, or marriage, everything linked to their child's well-being is important to parents. If you are a parent who is concerned about their child's future, you should underline the need of child insurance. If you are astonished by the mention of Child insurance and doubt its necessity, know that you, as a parent, may easily ensure that your son or daughter has a stress-free future ahead of them even if you are no longer by their side to give.
5 Reasons You Must Buy Child Insurance Today
Below mentioned are some of the prime reasons you must buy child insurance as soon as possible:
- Death of Parents
Life is unpredictable and can take away everything you care about and live for. If you haven't already considered your children's future in your absence, get a Child insurance policy. Why? It is because having this insurance by your side ensures that even if you are no longer able to care for your children, they will not have to pay in your place. In the event of your untimely death, the insurance company will waive the child insurance premiums and provide a lump payment to the beneficiary (your Child). Your Child will no longer be obliged to pay any premiums.
- Education Assistance
Education, like healthcare, is not inexpensive in India. Remember that school fees and other expenditures linked with your child's education will not be cheap. In fact, if and when your child decides to pursue further education, your overall expenses will skyrocket. However, with the availability of a Child insurance plan, you will be able to reduce the financial load associated with your children's education.
- A Financial Safety Net
You may establish a financial buffer for yourself and your dependents against future uncertainty by electing to acquire a child education plan. If your income decreases or an unanticipated catastrophe occurs, resulting in your death during the plan's lifespan, a child education plan will provide financial stability to your Child and will assist them in achieving their future goals and aspirations.
- Creates a Savings Habit
Investing your hard-earned money in a Child insurance plan will not only provide financial security for your child in times of disaster but will also assist you in instilling a saving habit in your child. The skill of saving assists you in reaping the benefits of years of discipline and devotion in the shape of a comfortable corpus at a later point in life. Committing to investing in a Child insurance plan would assist an individual in developing the habit of disciplined savings.
- Tax Deduction
A Child insurance plan provides tax advantages for both the cash invested and the reward received. This is done primarily to encourage policyholders to enroll in a Child insurance plan and to alleviate financial hardship as a result of it. Furthermore, another advantage of a Child plan is that you may reinvest the money you saved on taxes. Section 10 of the Internal Revenue Code exempts child insurance plans from paying taxes on maturity payouts and capital gains (10D).
You may safeguard your child's financial security in attaining their future ambitions even if you are not around by investing in a child insurance plan. Investing in a substantial Child insurance policy is a wise choice for any parent who wants to financially protect their child's future.
Also read - Top Child Insurance Myths Busted
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.