Top Reasons To Buy A Child Insurance Plan
Updated On Apr 26, 2021
Table of Contents
One of the most popular investment options these days is a child plan as it serves the dual purpose of accumulating wealth for your child while securing their future in your absence, with a life cover. The following reasons will tell you how important a child insurance plan is.
Top 5 Reasons to Buy a Child Insurance Plan
The following are some of the top reasons why you must purchase a child insurance plan.
1. Children’s Fund
Child insurance plans let you create a fund for your child. Under this fund, your child can get regular instalments of some amount of money. This is very beneficial in supporting the various milestones of your child’s life.
2. Regular Investments
Child insurance plans also help the parent have good financial habits. By putting down a certain amount of money on a regular basis, you can gather a substantial corpus for your child. You can even choose the investment fund in the case of Child ULIPs. Your regular investments in the present will help your child in the future.
3. Educational Expenses
A growing child will require increased financial support. The older your child gets, the more will be their educational costs. Child ULIPs are a great way to take care of such concerns. They are market-linked insurance plans that can adequately fulfil the increasing educational expenses of your child.
4. Great Returns
Child insurance plans payout great returns on your investments. By saving up, you can ensure your child gets a good amount of return on your investment. The premiums get compounded to payout a substantial amount in the future.
5. Premium Waivers
A child insurance plan also provides an opportunity to keep the plan in force even after your death. The addition of a Premium Waiver to your basic child insurance plan ensures that no premiums have to be paid after the death of the primary policyholder, that is you. Therefore, your child can keep the plan going for their future even in case of your untimely death.
Child insurance plans, therefore, is the best way to contribute to your child’s financial stability. Even when you might not be there for them anymore, the insurance plan remains to safeguard their financial interests. Through child insurance plans, small savings in the present culminate into great benefits for the future.