When you become a parent, it is your responsibility to take care of their needs. And one of the best ways to ensure that you give the best of everything to your child is to secure their future with a child insurance plan. Read on to know why it is the best gift.
If you have recently become a parent, you may be going through a roller-coaster of emotions. You may feel immense joy, but at the same time, you may feel anxious about bearing an additional responsibility. You would know that your financial expenses will increase as you must take care of your child’s needs.
As a parent, you would want to provide the best of everything to your child, right? But, how to ensure that you never fall short of funds to help your child accomplish their goals? The answer to all your questions – Child Insurance Plan.
Of all the gifts your child may receive, you can give your beloved one the most precious gift of all, i.e., secure their financial future. Child insurance plans are specially designed to help you meet the child’s financial needs and future goals.
If you are sceptical about buying child insurance, here are its benefits.
· Financial protection
One of the most significant benefits of buying a child insurance plan is that it assures financial support to your child in an unfortunate event like your sudden demise. Your child may be entirely dependent on you for every comfort and security, and life. However, what if you are not around anymore?
The child insurance plans provide a life cover and lump sum payout that your family can use to take care of the child’s future needs.
· Investment opportunity
Apart from providing life cover to your child and securing their future against uncertainties, some childcare plans give you investment opportunities and get market-linked returns. You can invest in various assets and leverage the market potential to accumulate a significant corpus.
Also, such plans give you the flexibility to invest in different asset classes like debt bonds, hybrid mutual funds, equity funds based on your financial goals and risk-taking capacity.
· Lumpsum pay-out on maturity
Child plans offer a lump sum amount on policy maturity. You can choose the maturity term as per the timeframe matching your child’s future needs. Throughout the policy term, your investment continues to grow, and until maturity, you can accumulate a decent corpus to fund your child’s aspirations.
· Partial withdrawal
Most child insurance plans allow you to partially withdraw the funds to meet urgent requirements like paying school/college fees or medical emergencies. However, you must know that withdrawals may be permitted only after a specific number of years from the date of buying the policy.
· Tax benefits
Just like other insurance products, child insurance plans are also an excellent tax-saving instrument. The premium you pay for the policy is eligible for tax benefit up to a maximum limit of Rs. 1.5 lakhs under Section 80C of the Indian Income Tax Act.
Now that you are aware of the exciting benefits of a child insurance plan make sure that you give your child the gift of financial security and secure their tomorrow.