If you ask any parent to name the happiest moment of their life, more often than not the response will be the day their child was born. A good parent ensures that their child’s every need is met by planning for it in advance. Investing and saving money is very important in order to comfortably meet any future needs. You must factor the time value of money because an item that costs Rs 1,000 today will probably cost twice that much in a few years’ time.
Education expenses of children like school fees, tuition fees, cost of books and stationery etc are increasing at a fast pace. With the advancement in technology, most of the schools have made computer education as a compulsory part of the curriculum early on for children. Parents aspire to send their child abroad for further studies. Most parents feel that they will be in a position to provide for all of this and more to their child in the future however the truth is only few of them succeed.
These successful parents can be termed as ‘visionaries’ or ‘smart thinkers’ as these are the people who plan ahead in life. Apart from showering love and affection, these parents are disciplined enough to secure their child’s future.
Most parents try to fulfill their child’s dreams and aspirations by working hard every single day until their child becomes capable enough to take care of himself. But have you ever thought about what if you are not alive to see your child through these years? Future is uncertain and there are many things that can go haywire in the process. Accidents or death of breadwinner of the house results in a crisis for the entire family and will definitely shatter the child’s future.
There are many steps that a parent can adopt to ensure that the child’s needs are taken care of no matter what happens. A certain way to protect the child’s future from any kind of uncertainty is by investing in a good child insurance plan.
How does a child plan work?
A child insurance policy will have the child as the beneficiary of the policy. The earning parent is usually the policyholder but in most of the policies either of the parents can be the policy holder. While some policies cover both – the parent and child, there are a few policies which cover only the parent. The policies can be availed anytime after the child is 3 months old and the maximum entry age is often 16 years. Such policies also consider children who want to pursue further studies and extend cover till the age of 24 years for such children.
Attractive Features of a Child Insurance Plan
A child insurance policy is designed with many special features to take care of the child’s needs at every step. The standard benefits which are offered in a child insurance plan are :
1. Limited premium payment term whereby the parent has to pay the premiums only for a fixed number of years but the policy continues for much longer
2. Regular money back at important stages (like at the end of schooling, when the child turns 18 or 21, etc)
3. Waiver of premium in case of death of the (earning) parent
4. Planned maturity benefit at important stages like marriage and higher education
5. Education allowance is given every year in case of death of the parent (policyholder)
Variants in a child insurance policy
There are many variants available in child insurance plans. There are plans which let you invest money now and the company will pay a lump-sum to you after a certain number of years. You can utilize the money for your child’s higher education or marriage. On the other hand, there are plans where you get a specific amount every year. In short, no matter what your needs are, there are a variety of plans available to take care of them. Take a complete look on all child plans and compare the benefits and features.
Don’t delay in planning your child’s future. Act now. The art lies in being a smart parent and not just a loving one.
