How Much Should You Invest In Child Life Insurance Plans?

In our Child Education Insurance Plan, you pay premiums for a specified period (monthly, half-yearly, yearly or single pay). Once the policy term ends, you receive a lump-sum amount called the Maturity Benefit. In case of an unfortunate event during the policy term, the company offers your nominee the life cover amount. The company also waives the future premium payments for the remaining policy term to ensure that your children’s future is always secure. This benefit is available, provided all due premiums are paid.

Why Do You Need A Child Education Plan?

• A Child Education Plan is an insurance policy that offers protection as well as an opportunity for saving money to ensure a secure future for your child.
• It makes sure that your child receives the education he/she desires with a lump-sum payout at maturity or when any unfortunate event occurs to you.
• It acts as a safety net to make sure that your child’s education does not get affected even if you are not around. In case of an unfortunate event, your child receives the life cover.

How Much Should You Invest In A Child Plan?

Education is the key to a bright future. Regardless of what stream or career your child chooses, ensuring that they go to a good school and college is your prime responsibility as a parent. Considering the fact that India is a developing country, the children of today have a massive role to play in the growth of the nation tomorrow. All of this can be achieved with a proper education. Not only does education open the realms of a financially secure life but can also help children develop an open mind and live a more mentally and physically balanced life.

However, the cost of education can be overbearing in some cases. As per a study conducted in 2019, it was found that the cost of education from primary classes up to post-graduation was Rs. 8,331 a year for each student. This is only a general estimate that includes all types of schools and colleges across the country. The fee for private schools and colleges is a lot more than a public or government one. Professional courses such as engineering, medicine, and others can be even more expensive. If you combine these costs with inflation, the final figure will drastically increase further. It is hard to cover these costs with a limited source of income.

That is why, with a life insurance plan, you can ensure that your child’s future and dreams are financially secured, even in your absence.

Conclusion

For any child insurance plan, there is no such strict entry age as it varies from insurer to insurer. However, the minimum age to avail of a child insurance plan is 18 years (for the parent).

Also read: Features Of Child Plans

Importance of Child Insurance Plans