There’s not a parent on the face of the planet that does not want their children to have a better life than they do. When we witness real-life examples of this happening – and it happens all the time – we take notice and call it “a joy to behold”, “unfathomable”, or “a miracle from above”.
However, what if we told you that achieving your child’s financial dreams is as simple as filling out a form, handing over some cash, and maybe answering a few questions? We know what you’re thinking: “That is too good to be true!”.
Child plan is a sensible plan that combines investment strategies with the specific goals one has in mind for the present and future of the child. It essentially is a kind of insurance plan constructed to ensure an easy, financially beneficial future for your children.
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Why is a Child Plan Important for You?
Financial Help for Your Child’s Education
Early childhood education is an important investment in your child’s future because, when left untrained, it will be much harder for your child to catch up with his peers in school. As a parent, your primary concern probably is the escalating cost of education in the modern age, and how it will impact your child’s future. If you save well and invest in an insurance plan during your child’s school and college days and the policy matures when he or she has grown up, you will not have to worry about the financial burden.
Covers Medical Expenses of Your Child
If you have a family history of some serious illness, you should get a child health insurance plan right after your child is born and remains healthy. This will be useful if your child falls prey to any disease later in life. With a child plan, you can ensure that your child is protected against several critical illnesses.
Supports Your Child in Case of Your Death
You can purchase child life insurance as a form of financial planning. If you were to pass away, your child would no longer have to keep paying premiums and would receive a lump sum payment to be able to manage her day-to-day expenses.
Works As a Collateral for Loans
You can also use a child insurance plan as security if you want to take an education loan or personal loan for your child. This will greatly help your son or daughter when he or she requires a lump sum for higher studies and you don’t have the required financial resources available.
Helps You Adopt the Habit of Savings
Go back to your financial plan and calculate the need for funds during the various stages of life and your financial capability to bear those costs. Also calculate what you are saving for such as primary and secondary education, higher studies, marriage, etc. When considering a child plan, consider your current responsibilities, such as having a mortgage or other loans, and evaluate the amount of money you can spend on your child each month. Although you may feel burdened by having to pay for a child’s plan daily, it will soon become a habit and you will be able to bear all those financial responsibilities with time.
Best Child Insurance Plans in India
A child plan is certainly an important part of your financial planning that ensures the future betterment of your child. Let us take a look at the best child insurance plan available in India to safeguard your child’s future:
Max Life Future Genius Education Plan
The Future Genius Education Plan is an insurance product that helps you save for your child’s higher education. If you enrol in the Max Life Future Genius Education Plan, you’ll have a variety of useful benefits. These include guaranteed money back, maturity benefit, death benefit, premium waiver benefit, and many more.
Canara HSBC Oriental Bank Of Commerce Invest 4G plan
Canara HSBC Oriental Bank Of Commerce Invest 4G plan is a unit-linked insurance plan, where you can customize your plan as per your goals and changing requirements. This non-participating product has an unmatched combination of portfolio management options and flexibilities, which gives you complete control over your investments. If you want to make sure that your child gets the best for his/her future, this is certainly one of the best child insurance plans in India that you must check out.
HDFC Life Young Star Udaan
HDFC Life’s Young Star Udaan is a participating endowment and moneyback plan that is ideal for parents who wish to provide for the future financial needs of their child. With 3 maturity benefit options, a classic waiver option, and customization features to align your investments as per your child’s financial milestones in life, this plan is certainly a perfect choice for you.
ICICI Pru Smart Kid Solution
ICICI Pru Smart Kid Solution is a unit-linked insurance plan that helps you easily invest in your child’s education. It also helps protect her future by allowing you to make financial investments for a certain timeline and allow your kid to reap its benefits in the future. In the event of the unfortunate demise of the parent, the plan waives off the pending premiums and provides a death benefit to the child.
The time to start planning for your child’s future is before they are even born. By investing in a child investment plan, you can protect your child from the financial burdens of adulthood, while giving them more financial security in their lives.
In this article, we have discussed the importance of child investment plans and why they are required. We have also listed the reasons to invest in your child’s plan and how you can go about investing in your child’s future.