How do you intend to raise a family member that is a sports fan?
Published On Mar 14, 2022 10:15 AM By InsuranceDekho
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Child Life Plans are plans that allow parents to meet criteria at key points in their children's lives, such as education, marriage, or following their entrepreneurial dreams. These plans also contain life insurance, which provides a financial safety net for you and your family in the event of your death. Child plans help you build an investing portfolio in order to meet crucial milestones in your child's life, such as marriage and education. These are either guaranteed-return plans or unit-linked insurance plans that incorporate a variety of funds to help you get the most out of your money.
The Benefits of Child Plans Which Helps To Raise A Sports Fan
Investing in Child Life Plans might provide you with a number of benefits. The following are some of the most significant advantages of Child Life Plans. -
1. Great Investing Habits
Regularly investing in Child Life Plans instils an investment habit in your children, teaching them how to save and manage their money. This crucial lesson learned at an early age proves to be beneficial to the children later in life, supporting them in better managing their finances.
2. Gaining More Money
Returns and other benefits are provided through a child plan, which helps you develop your money over time. You will profit from market gains if you invest in a ULIP child plan, whilst an endowment child plan will give you with assured returns.
Returns on child plans might be as high as 12%, which is greater than the long-term rate of inflation. Child Insurance Plans not only safeguard your investment but also help it grow quicker.
4. Benefits from Life Insurance
Another significant benefit of child plans is the provision of a life cover, which gives financial stability to the child in the case of the life guaranteed parent's untimely death. This advantage allows the child to finish their education according to their parents' preferences.
5. Contributes to the financial support of a child's extracurricular activities
By taking advantage of the partial withdrawals allowed by the majority of kid plans, you may foster your child's interests and talents in extracurricular activities. Some of these investment alternatives also enable you to borrow money after your plan has reached a specific minimum value, which can help you pay for your child's unforeseen expenses.
6. Tax Benefits
Child Life Plans offer tax benefits to its subscribers. Section 80C of the Income Tax Act allows policyholders to deduct up to Rs. 1.5 lakh from their taxable income if they have a child plan.
Child plans are investment plans that help policyholders provide their children with the best education and future possibilities. These programs cover the whole cost of education as well as other required expenses, allowing the investor to set their child up for a successful future. A child's life insurance policy can assist you in paying for your child's education, especially higher education expenses, as well as other extracurricular activities. It also encourages you to save more money so that your child will be able to cope with inflation. As a result, a child life insurance policy aims to safeguard and protect your kid for the remainder of his or her life.
Also Read: In India, you should be aware of the LIC policy for girl children.
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.