Child Insurance: Need of the hour

Wishing that your child reaches the boundaries that cannot be defined by success?

Are you those parents, who want to simplify the requirements of your children and give them a push one step ahead to making achievements? If yes, then you also understand the relevance of saving money. A responsible parent starts planning and working to protect their children from the odds as soon as they are born. They may have bigger dreams but the funds to accomplish the goals may not be sufficient.

Possible? Yes, it could be the case. Several salaried individuals start a new family but at times they fall incapable to complete their desires due to the rising cost of living expenses and inflation. Their financial conditions leave them to think of buying a child life insurance plan. Why?

Let us explore that.

What is Child Insurance?

A child insurance is a plan that prepares you financially to secure your child’s future needs. The insurance policy pays maturity benefits as well as life cover. The insurance policy pays when your child completes a milestone in life. In case of any unfortunate event, the insurance plan will still pay on the completion of the milestones. The policy protects the child’s future even in the case of the parent’s demise.

The child plan works on the concept of investment enabling you to create a considerable fund to provide for a child’s important stages like marriage or education. Under the child insurance plan, the insured is the parent and not the child. 

Further, let us read about the importance of child insurance.

Importance of Child Insurance

Child insurance is a financial plan that prepares you financially for your child’s future needs. As a parent, you can dream big rather than the best for your child. But do you have enough resources to support the desires of your child? If not then the child insurance plan is going to be the most meaningful purchase for you. 

Fund your child’s education: Understand that education inflation is 10%-12% in India. Suppose you want your child to be an engineer. The current cost of education is Rs.20 lakhs but after some time the total cost needed will be Rs.30 lakhs. This makes buying a child insurance plan relevant.

You can use the policy as collateral: The child insurance plan gains cash value after a few years of premium payment. Once the policy gains value, the insurance policy can be used as collateral for loans.

Get life cover: A child insurance plan gives you life protection. If anything happens to the parent, the child’s future is still protected. They get the benefit at the desired milestone in life.

Savings: The opportunity to save for the child’s future is easier with the child insurance plan. The insurance company pays the lump sum benefit at the maturity of the policy.

Plan a grand wedding: You are dreaming of hosting a grand wedding for your child. Great! But is money a constraint? With a child insurance plan, you can easily save over the years to fund your child’s destination wedding when required. A destination wedding at Goa today may cost you Rs.1 crore. The same expenditures will amount to Rs.1.5 crores approximately considering the rate of inflation as 8%. When you know that you won’t be able to own this fund, buying a child plan is beneficial.

Why is there a growing need for child insurance?

The rate of inflation and the rising cost of living expenses pushes the need of owning a child insurance plan. When you have sufficient savings to protect your child’s future, you live with peace of mind.

• With the changing times, the cost of education is rising fast. The insurance will help you save better and faster. 
• The life expectancy of individuals has also reduced. People die from heart attacks and other critical illnesses more than earlier times. Changing lifestyle and increase in the level of stress has contributed to this increase in number.  With this fact you cannot leave your child’s future at stake. Hence buying child insurance is a must.

Benefits of a Child Insurance Plan.

A child plan offers these benefits:

1. It helps you build a huge corpus for a child’s higher education or marriage.
2. The insurance plan allows you to have partial withdrawal for the child.
3. The child plan offers financial assistance in case of any unfortunate event.
4. The insurance plan comes with a waiver of premium benefits. If the parents are not able to pay the premium, the in-built waiver of premium cover saves the premium for the remaining period.
5. The policy can be extended to increase the scope of coverage with multiple rider covers.

Best Child Insurance Plan that you can buy.

The best child insurance plan that you can buy is 

ABSLI Child Future Assured Plan

• ABSLI Child Future Assured Plan is a life insurance savings plan. It offers assured benefits to take care of the important milestones of education and marriage in a child’s life. 
• The plan gives the flexibility to choose from various pay terms and policy terms.
• The Child Future Assured Plan gives the death benefit to the nominee.
• The policy offers worry-free goal achievement through policy continuance benefits.
• The child plan comes with the loyalty addition of 20% as assured benefits at the end of each scheduled pay-out.
• The insured can also enhance the sum assured by 50% or 100% under the policy. The enhancement can be done by paying an additional premium. 
• At the end of the policy, the insured will get the maturity benefit.

Conclusion

Thinking of a child’s safety is a part of parenthood. Buying a child insurance plan is a better option to financially secure your child’s future. You can even expand the coverage under the policy with the rider cover. If in case you suffer from anything that falls under the purview of the rider, the insurance policy will pay you or the child. If you are interested in buying a child plan, you may read here for detailed information.