How Life Insurance Can Help You Fund Your Child's Dream?
Updated On Nov 08, 2021
Table of Contents
- Benefits of Investing in Life Insurance For Your Child
When it comes to securing their children's financial futures, parents go above and above to guarantee that they have a bright future. Inflation and growing day-to-day costs, on the other hand, might throw financial planning off. Child life insurance policies can assist parents in saving money for their children's future needs. It gives financial assistance at certain important junctures in your child's development.
Benefits of Investing in Life Insurance For Your Child
You might gain a variety of advantages by investing in Child Life Plans. Some of the most important advantages of Child Life Plans are listed below.
There Is An Investment Corpus For a Variety of Financial Needs
Child plans assist you in accumulating an investment portfolio in order to meet significant milestones in a child's life, such as marriage and schooling. These plans are either guaranteed-return or unit-linked insurance plans that include a variety of funds to help you enjoy your money.
Benefit of Life Insurance
Another essential feature of child plans is the provision of a life cover, which offers financial protection to the child in the event of the life guaranteed parent's untimely death. This benefit enables the youngster to complete their education in accordance with their parents' wishes.
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.
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.
Aids in the Funding of a Child's Extracurricular Activities
You may encourage your child's interests and abilities 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 expenditures.
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.
To Assist You in Fostering Your Child's Professional Ambitions.
Child life insurance is the most efficient way to protect your child's future by assisting them in achieving their dreams and ambitions. Children's plans allow them to save money for their future financial needs. Obtaining life insurance child plans that can give financial aid in the case of a need can assist your child in achieving his or her professional goals.
A child insurance plan allows us to set aside a certain amount for the child's future financial requirements while also safeguarding the youngster from any threats. It doesn't matter how much money you start with; the important thing is to start investing as soon as possible in order to optimise your long-term returns. Having a solid plan now is preferable than having a fantastic plan later in the day.