Securing your child's future with a child plan

Securing your child's future with a child planJust like every parent, you too have plans to give your children the best education and make the best arrangements for their marriage. But with rising inflation, saving for all the desires you have may become difficult. This calls for a savings strategy that specifically focuses on your child. A child plan is one of the most effective way to keep your child's future secured even when you are not around.

The plan functions by investing the premium you pay in order to give you the sum assured on the maturity date you've selected. This money can be used to fund an expensive degree abroad, starting up a business or anything else that your child may need in the future.

Apart from the sum assured here's what the plan will give you –

Systematic investments

The key to saving enough to meet your financial goals is to be systematic with your investments. Child plans help you get into the habit of saving regularly for your child. The policy is much like an insurance and wealth enhancement tool. All you have to do is pay a specific premium amount for a certain period of time and received returns on. For the plan to give you the desired results, you need to make the premium payments in a timely fashion. These savings are secluded to ensure the future of your child is not at risk.

Death Benefit

In case of an eventuality, your child's future could go for a toss. Hence, child plans provide the nominee of the policy a death benefit in case of the unfortunate death of the policy holder. This sum ensures your child is financially secured. These plans offer the nominee a certain percentage of the sum assured at regular intervals and pay out a lump sum amount at the time of maturity. In case of death of the policy holder, the company waives off the insurance premiums as well.

Customized Plans

Child plans let you customize the policy as per your requirement. You can choose the tenure for the plan, the sum assured you want and the premium payment method. This lets you plan your finances accordingly and ensures you save as required.

Choose your plan maturity date

The flexibility offered by child plans is evident by the fact that you can choose the maturity date of the plan. So you either opt to get the benefit around the time your child completes his basic education and needs funds for a higher degree or after his/her studies to help them establish their own business, or even their marriage. But remember to keep your finances in mind when deciding a maturity date.

Tax benefits

You may avail of the tax benefits on the premiums paid and the benefits received as per the prevailing tax laws under Section 80C and Section 10 (10D) of the Income Tax Act, 1961. The tax benefits are subject to change as per change in tax laws from time to time.