Tips To Keep Your Child's Future Financially Secured
Updated On Sep 18, 2021
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As a parent, financially securing your child’s future is your moral responsibility. A financial crisis of any sort can be a barrier to their progress at different stages of your child’s life, the financial barrier can also be your untimely demise. A good way to secure your child’s future is to invest in a child life insurance plan which provides comprehensive protection that will provide financial protection to your child from any unforeseen events.
Child plans are a combination of savings and insurance plans. By investing in a child life insurance plan you can have financial security to cover their medical, education, marriage and other financial needs of your child, in your absence. Apart from choosing a child life insurance plan, it is very important to have financial planning to ensure financial security of the child. Below mentioned are some tips that can help you keep your child’s future financially secured.
Few Tips to Secure the Financial Future of your Child
Following are few tips which can help you keep your child’s future financially secured:
1. Build a Financial Plan: Financial planning is the first most important step taken to secure your child’s future. It is advised to make a plan considering your current financial situation such as your current expenses, future long-term/short-term expenses, outstanding debts etc. It is also important to keep inflation rate into consideration while making a financial plan. Your financial plan should cover all of the above mentioned aspects and provide financial aid to your child in case of your unforeseen demise.
2. Get an Ideal Child Life Insurance Plan: An important factor to be considered while financial planning for your child’s future is to purchase an ideal child life insurance plan. As sole breadwinner of the family and a parent you should consider purchasing a child life insurance plan which provides you life cover and help you create a corpus for your child’s financially secured future. An ideal child life insurance plan can help reduce the financial burden which may fall on your child in case of your untimely demise.
3. Add Waiver of Premium Rider: Waiver of premium rider is a good choice of additional coverage for a child life insurance plan. Under this rider, all future payable premiums for the policy term, shall be waived off in case of an untimely demise of the life assured i.e. the parent during the policy tenure. The remaining premiums shall be paid by the insurance company on the behalf of the parent/life assured which enable the child i.e. nominee will be able to avail the benefit of the policy. This rider ensures policy continuance even if the life assured passes away during the policy tenure.
4. Appoint a Guardian: If your child is a minor i.e. below the age of 18 years, you should appoint a guardian/appointee under the policy, who shall receive the death benefit on behalf of the child, giving your child the opportunity the fulfil his/her expenses and achieve his/her dream even in your absence.
As a parent you would want a lack of financial resources to become an obstacle for your child’s future and aims, this why financially securing your child’s future should be your first priority as soon as you become a parent. It is important to choose a right child life insurance plan that provides financial support to your child when required.
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.