Know how life insurance can help your child fulfil their goals
Once you have a child, all your financial decisions revolve around them. Be it your investment or expenses, your child’s needs are prioritized over anything else. With an increase in the quality of lifestyle and living expenses, planning your child’s future has become more important than ever. This is because when you have a child, you have to take into consideration their education costs, health care costs, and the cost of their overall living. Securing your child’s life by choosing the right insurance that aligns with their goals is one of the most important financial decisions that you will make. This is where a child’s life insurance comes into the picture.
When you buy life insurance for your child, along with a life cover, you also get to enjoy several benefits that could be useful for your child to achieve their goals in the long haul. Here are the benefits of a child insurance plan from which your child can benefit:
- Helps in building funds for your child’s milestone goals
Be it education or marriage, an enormous pool of money is required to fulfil the big milestones of life. In today’s times, the cost of education is on the rise. With the help of a child insurance plan, you can also save up on funds that can help your child achieve these goals over the years. Here, the earlier they begin, the bigger corpus you will accumulate for your child. With a sizeable corpus, you ensure that no financial limitations are standing between your child and their goals.
- Provides collateral for education loans
If your child eventually plans to study abroad or wants to enroll in an expensive university, this plan ensures that money does not stand between them and their dreams. The cost of education has been rising and this may compel parents to opt for education loans. With a child insurance plan, you can easily opt for this type of loan simply by keeping your policy collateral.
- Allows customized pay-out
There are different life insurance pay-outs you can choose from to secure the life of your child. Usually, people opt to get a lump sum when the policy matures or milestone benefits that one can avail of during the duration of the policy, or a combination of both. The option to customize the pay-outs of the plan ensures that the funds are avail when your child needs them to achieve their goals.
- Protects your child in your absence
At the core, just like any other insurance, a child insurance plan provides life cover. In case of the sudden demise of one parent, financial coverage is provided to the child and the surviving spouse. This ensures that, even in the absence of a parent, the financial health of the child is not hampered. Also, when you buy life insurance, there is the option of waiver of premium rider which waives off any future premiums. Use a life insurance premium calculator while buying insurance for your child to get an estimate of the premiums of different insurance plans.
- Withdrawals during emergencies
Sometimes you may need funds urgently to fulfill a financial need. During such urgent times, there are some child life insurance plans which allow you to make withdrawals partially. Knowing that the option of partial withdrawals exist can provide a mental relief to you in times of unforeseen emergencies.
With child life insurance, to ensure that your child gets the maximum benefits to achieve their goals, start as early as you can. Use a life insurance premium calculator to ensure that you get the coverage you need for your child at a premium you can afford with ease. Factor in the inflation while choosing the sum assured you need. Ensure that you get quotes from different insurance providers, compare their plans, and then choose the one that suits your child the best. Also, note that there are several tax benefits one can avail of when they buy a child insurance plan for their child.