How To Fund Your Child's Extra Curricular Activities With Child Life Insurance Policy?
Published On Sep 28, 2021 10:00 AM By InsuranceDekho
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Child Life Plans are plans that allow parents to satisfy criteria at significant milestones in their child's life, such as school, marriage, or pursuing their entrepreneurial aspirations. These plans also include life insurance, which protects you and your family with a financial safety net if something tragic occurs to you. Child plans assist you in accumulating an investment portfolio to meet important milestones in a child's future, such as marriage and school. These plans are either guaranteed-return plans or unit-linked insurance plans that include various funds to help you enjoy your money.
Key Advantages of Child Plans
You may obtain a variety of advantages by investing in Child Life Plans. Some of the most important advantages of Child Life Plans are listed below. -
1. Generous Profits
Child plans may yield returns of up to 12%, which is higher than the long-term rate of inflation. Child Insurance Plans not only protect your investment from deterioration but also help money grow faster.
2. Life Insurance Benefit
Another major advantage provided by child plans is the provision of a life cover, which provides the kid with financial security in the event of the untimely death of the life assured parent. This benefit enables the kid to complete their education by their parent’s wishes.
3. Excellent Investing Habit
Investing in Child Life Plans regularly instills in your children an investment habit, teaching them how to save and manage their money. This important learning at a young age comes out to be useful for the children, later on, assisting them in better managing their finances in the future.
4. Increase In Wealth
A kid plan helps you build your money over time by providing returns and other benefits. If you invest in a ULIP child plan, you will benefit from market gains, whereas an endowment child plan would provide you with guaranteed returns.
5. Aids In The Funding Of A Child's Extracurricular Activities
You may cultivate your child's interests and abilities in extracurricular activities by taking advantage of the partial withdrawals permitted by the majority of child plans. Some of these investing options also allow you to take out a loan after your plan reaches a certain minimum value, which can assist you to pay your child's unexpected expenditures.
6. Tax Advantages
Tax advantages are provided by Child Life Plans to policyholders. Child plans allow policyholders to claim a tax deduction of up to Rs. 1.5 lakh from their taxable income under Section 80C of the Income Tax Act.
Child plans are investment plans that assist policyholders in providing the greatest education and future for their children. These plans cover the whole cost of school as well as other necessary costs, allowing the investor to establish a bright future for their child. A child's life insurance policy can help pay for your child's education, particularly higher education fees, as well as other extracurricular activities. It also helps you to save more money so that your child has the financial stability to deal with inflation. As a result, a child life insurance policy attempts to protect and secure your child for the rest of their life.
You may also like to read - Frequently Asked Questions For Child Life Insurance Plans
All Information You Need About Investment Plan for Your 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.