Importance of Child Insurance Plan
Updated On Jul 24, 2021
Each parent wishes the best for their child. Be it buying the best possible toy or providing education at the topmost school, parents do whatever they can to ensure their child’s happiness and bright future. While dreaming the best for their children, the most important thing that parents forget is that their child needs financial security the most. Parents often forget that while they may want to see their child do the best, they may not contribute to it due to uncertainties of life. This is where the role of child insurance comes in.
Understanding the Importance of Child Insurance
If you are yet to consider buying child insurance for your son or daughter, here are a few reasons for you to do so right away! The list of aspects that makes child insurance important includes:
- A child insurance plan will secure the future of your beloved son or daughter even if you are no longer to provide for them. On buying a child plan you will be assured that your child has a significant amount (sum assured) that the insurance company will provide on maturity, irrespective of you being alive or not. What's best is that this fund could be easily used for your child's education or marriage, thereby securing their financial future.
- A child insurance plan will make sure your child does not bear the burden of paying the premium in the case of your death due to the unique feature of an inbuilt premium waiver benefit. This way your child will get financially secured without having to worry about the premium payment.
- A child insurance plan will come with the facility of being customized with the help of optional riders, which work towards increasing the scope of coverage. So, if you think your child might need extra coverage, you could easily provide them the same with optional riders.
- A child insurance plan will help you save tax under Section 80C up to a maximum of Rs.1.5 Lakh. Take note that any death benefit or maturity benefit received under the plan will be also completely tax-free.
- A child insurance plan will help you in creating a corpus for the future financial requirements of your child. The plan will come with coverage for premature death, thereby securing your financial plans for your child from getting disrupted in case of your death.
- A child insurance plan (ULIP) will help you start disciplined savings to get the future requirements of your child fulfilled. This consistent and disciplined savings approach will provide the best possible returns to your children.
So, are you all set to buy child insurance?
Make sure you choose the maturity date after careful consideration and finalize the date a few months prior to the date before which you would require the amount.
Also, make sure you buy child insurance at the earliest and not wait for your child to grow up so that you can ensure their happiness and financial security even during your absence.
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.