Important Information You Need On Investment Plans For Your Child

You as parents do everything that is in your power to make your child happy and satisfied. You encourage your child to dream big, there is no dream in the world that you cannot make it come true. This is where Child Insurance Plans come into rescue. Child Insurance Plans help you in giving wings to your child's dreams. Planning forms an essential part of any investment process. The early you plan, the more you  invest and the more you will add towards a child's bright future. 

Child Life Insurance Plans act as a financial backup to achieve major milestones in life such as education, marriage, etc. It offers you guaranteed returns on investments along with a vested bonus. Getting a child plan is not an optional choice; it is a responsibility which you have to fulfil towards your child's development. 

Eligibility Criteria

• Minimum entry age of the policy is 21 years whereas maximum entry age is 45 years
• Premium Payment term is between 7 to 14 years
• Flexibility to choose premium payment mode and premium payment terms whether it is monthly, quarterly, half-yearly and yearly. 
• Minimum Sum Assured for premium payment term between 7 to 9 years is 1,50,000 whereas for premium payment term between 10 to 14 years is 2,00,000 and there is no limit for maximum sum assured. 

Benefits of Child Investment Plan

Following are some key benefits enjoyed by the investors of child plans - 

• Education Cover

  Child Investment Plans provide your children with the benefit of education cover. Nowadays, rising education costs are a concern for every parent but after availing these plans will help you in fulfilling the educational expenses of your child starting from best schooling, high schooling, etc. 

• Systematic Withdrawals

  Child Investment Plans offer you the option of partial withdrawals or systematic withdrawals from the fund value depending on the requirements to meet the needs which may arise gradually. 

• Life Cover

  It is the most important part of most investment plans. Child Plans provides coverage of the life facility to you and will take care of your child's dreams and expenses if something unfortunate happens to you. 

• Goal Protection from Death and Disability

  The Investment Company will continue to pay the due premiums of your child's policy after your untimely demise. The option ensures that your child can achieve their goals in a worry free manner even after your death, and no need to pay any extra premiums.

• Creating a Corpus

  Child Plans help you in creating an essential corpus for your child's future needs By providing coverage for premature death the plan also protects your financial plans for your child from going haywire in case of death.

• Tax Benefits

  You can avail tax benefits with a child insurance plan. The premiums you paid during the policy are deductible under section 80(C) and Section 10(10D) and the maturity amount is not liable from tax, unlike plans like fixed deposits which attract a long-term capital gains tax.

• Maturity Amount

  Under Child Plans maturity amounts are received at the end of the policy term or on the demise of the parents. Also there is an option available under which you can withdraw the amount after 5 years depending upon the needs of the child. 

• Collateral Security

  Under Child Plans you can avail secured loans against the policy without breaking the investment for fulfilling requirements of the child. You can use the plan to raise your funds.

Conclusion

Having a Child Plan is essential for every parent to make their child's future bright and extraordinary even in their absence. It will give your child the power to realize their dreams and to work hard for the same without need to worry about finances. The ideal plan will make sure that your child receives all financial aid that he/ she requires during the policy. 

Also Read: Automate Your Children's Education Goals With These Investment Solutions

What is Waiver of Premium Rider in Child Plans?

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.