As a parent, you would want to give the best of everything to your child – the best career opportunities, the best lifestyle, the best education, etc. Also, you may strive hard to secure their financial future. But the truth is amidst the rising inflation and the cost of living, many people struggle to fulfil the basic necessities.
While the rising expenses is a cause of worry for many, you need not fret. You can accomplish your long-term goals and secure your child’s future by investing in a child investment plan. It can help you build a significant corpus in the long run so that you can easily take care of your beloved’s healthcare, education, and marriage expenses when the need arises in the future without any hassles.
Let us look at the benefits of investing in a child investment plan.
It helps you accomplish future goals
One of the most significant benefits of child plan investment is that it serves the dual purpose of insurance and investment for the future. Before you invest in any child investment plan, it is vital that you assess your current and expected future expenses and then start saving accordingly so that you can accumulate enough corpus for your future goals.
When you start investing a small amount periodically towards a child investment plan, you will soon develop the habit of regular savings. Slowly, you may be able to give your child the best life you want to give them when they grow up.
Provides education cover
Over the years, the cost of education has increased significantly. According to a recent survey, many parents suggested that they are worried about the rising cost of education the most. As your child grows, you would want them to pursue higher studies of their choice, but if you don’t have enough funds to pay the fees, their future could be at risk. Therefore, it is wise to choose a child investment plan in advance so that you can be tension-free.
Typically, a child investment plan’s sum insured is about 7-10 times the premium you pay. So, the premium cost may not pinch you compared to the benefits you get in the long run.
Serve as collateral for loan
If you wish to avail of a personal loan or education loan to meet your child’s needs, then it is wise to invest in a child investment plan. Many financial organisations accept this as collateral for a loan. For example, if you need immediate funds to pay for your child’s education fees in an Indian or overseas university, a child plan can be of great help.
Coverage continues even after your demise
It is impossible to predict death. But, you can safeguard your family’s financial future against unfortunate incidents like sudden death by buying a child plan. In case of your untimely demise, the insurance companies may waive the future premium, and they continue to get the insurance coverage till the end of the investment term.
On maturity, your child will be entitled to receive the sum insured. The money may come in handy to meet their everyday expenses, and they can continue living the same lifestyle they are used to even in your absence.
It is said, a stitch in time can save nine. This adage perfectly applies to investing in the best child plan. The sooner you start investing in one, the earlier you can ensure the safety of your child’s future.