How insurance help in building your child’s dreams?
Updated On Feb 03, 2022
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As a parent, one of your most important life goals is to ensure that your children have a safe and happy future. We all want to provide our children with the tools they need to live happy lives. The beauty of life, though, is that it is unpredictable, and we never know what life may throw at us. The best method to ensure your child's future is to assist them in achieving their dreams and goals. This is where children's insurance policies come into play. These programmes assist you in securing your child's future by allowing you to save for their goals and dreams. Whether your child wishes to pursue his or her business goals or pursue higher education abroad, a child insurance plan provides you with the financial security to make all of your child's future dreams come true.
Child Life Insurance Benefits
Child Life Plans include a number of advantages that you can take advantage of.
Some of the most important advantages of Child Life Plans are listed below.
1. Investment Corpus For Various Financial Needs
Child plans assist you in building an investing portfolio to meet significant life milestones for your child, such as marriage and college. These plans are either guaranteed-return plans or unitlinked insurance plans that include a variety of funds to help you grow your money.
2. Benefit of Life Insurance
Another essential feature of child plans is the provision of a life cover, which provides financial protection to the child in the event of the life assured parent's untimely death.
This benefit enables the youngster to complete their education in accordance with their parents' wishes.
3. Good Investing Practices
Investing in Child Life Plans on a regular basis instils in your children an investment habit, teaching them how to save and manage their money. This important lesson learned at an early age subsequently proves to be useful to the children, allowing them to better handle their finances in the future.
4. Appreciation of Wealth
A Child plan helps you expand your money over time, both in terms of returns and as a bonus. If you invest in a ULIP child plan, you will benefit from market gains, while an endowment child plan will provide you with guaranteed returns.
5. Aids in the funding of a child's extracurricular activities
You can encourage your child's interests and talents in extracurricular activities by taking advantage of the partial withdrawals allowed under most child plans. Some of these investing options also allow you to take out a loan if your plan reaches a certain minimum value, which can assist you to cover your child's unexpected expenses.
6. Benefits from Taxes
Tax benefits are provided by Child Life Plans to policyholders. Section 80C of the Income Tax Act allows policyholders to deduct up to Rs. 1.5 lakh in tax from their taxable income if they purchase a child plan.
A Child insurance plan allows us to set away a specific sum for the child's future financial needs while also protecting the child from harm. Child plans are investment plans that assist policyholders in providing the greatest education and future for their children. These plans cover the entire cost of education as well as other critical expenses, allowing the investor to invest in their child's future.
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.