How Child Life Plans Can Help You Plan Your Child's Bright Future?
Updated On Jun 18, 2021
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Being a parent you wish to provide the best education facilities to your child so that they can achieve their future goals without facing any hassles. However, rising costs of education emerge as a major challenge that parents face in this pursuit. Thus, it becomes imperative for parents to plan for their child’s education and other key life stages in advance so that all of their child’s dreams can be fulfilled in time without financial hassles.
What are Child Life Plans?
Child Life Plans are the policies that can provide parents with an opportunity to meet the requirements at key milestones in their child's life which can be related to education, marriage or their entrepreneurial dreams. These plans also offer a life cover that provides you and your family members with the financial safety net in case something unfortunate happens to you.
Benefits of Child Life Plans
There are various benefits which you can avail through investment in Child Life Plans. Below we have mentioned some of the key benefits of Child Life Plans -
Investment Corpus For Different Financial Needs
Child plans help you build an investment corpus to meet the major milestones in a child's future such as marriage and education. These plans either function as guaranteed-return plans or as unit-linked insurance plans featuring different funds to help you appreciate your wealth.
Life Cover Benefit
Another important benefit offered by child plans is the benefit of a life cover which provides the child with a financial cover in case of an unfortunate demise of the life assured parent. This benefit helps the child to continue their education as planned by their parents.
Good Investment Habit
Investing in Child life plans at regular intervals develops an investment habit amongst your children teaching them how to save and manage their money. This key learning at a young age turns out to be beneficial for the children later, helping them manage their finances better in future.
By way of returns and additional bonus, a child plan helps you grow your money over time. If you have invested in a ULIP child plan, then you enjoy the benefit of market returns and if you invest in an endowment child plan, you receive guaranteed returns.
Helps Fund Child's Extra-Curricular Activities
By the way of partial withdrawals allowed under most of the child plans, you can nurture your child's interests and talents in extracurricular activities. Some of these investment solutions also allow you to take a loan once your plan attains a minimum value which again helps you meet the unplanned sudden expenses of your child.
Child Life Plans provides the policyholder with the Tax Benefits. Child plans provide the policyholder with an opportunity to avail a deduction of tax up to Rs. 1.5 Lakh from their taxable income under Section 80C of the Income Tax Act.
Child plans are investment plans that help the policyholder provide their child with the best education and future. These plans cover entire education expenses along with other essential expenses to help the investor build a bright future for their child.
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.