Life Insurances 194 views
With plenty of investment options available for an individual, it would not be wrong to say that it becomes quite easy to choose from mutual funds, share market, gold, public provident fund, etc. Moreover, some of them provide you with the healthy return on investment. However, in order to ensure the income from these investment options, you need to keep paying a particular amount. Moreover, if an individual who is investing in these schemes dies unfortunately, these schemes will be discontinued.
According to the reports shared by the National Crime Record Bureau, in every 90 seconds an Indian dies in an accident. Keeping this thing in mind, every parent is concerned about the future of their child because parenthood is not just only about the love, but it is also about the responsibilities.
Investing in a Child Plan
- Many of you will surely agree on the fact that the moment a child is born. The parents start accessing their financial requirements so that accordingly they can raise the cover of their existing life insurance policy.
- Let's try to understand this thing through this example- if the average cost for getting the higher education degree from a reputed university is Rs 8 lakhs, the assured amount should be somewhere at least Rs. 25 lakhs at the time of maturity.
- Well, to be very honest, the parents should start investing in the child insurance plan. Yes, because apart from giving the financial cover, these child plans also provide you with the tax benefits.
- Moreover, these kinds of child policies have been meticulously designed in order to meet the expenses a child will face in the future such as-higher education, marriage, and many more.
- When it comes to premiums paid for such policies, there is no denying on the fact that they are eligible for the tax-deduction under Section 80C. These days, plethora of leading insurance companies provide you with child insurance policy.
- But, some people opt for term investment over child insurance as the latter one is bit costly. While on the other hand, the term insurance plan offers a high cover at low cost, thus preferred by many.
- Not only this, in fact if the policy holder dies, the nominee will get the lump sum, but this is where the plan terminates. Thus, if an investor dies when the child is you enough, the latter will have to survive with that specific amount. Moreover, the major limitation of a term insurance scheme is the fact that it does not offer the security of a regular income.
Benefits of a Child Plan
- When it comes to child insurance plan, it has some specific features which makes it an ideal choice for many parents. So, in case if a policy holder dies, all the future insurance premiums are waived. Not only this, in fact in case of the eventuality, the company not only provides the lump sum, but also continues investing the money on deceased's behalf.
- The nominee will get the final amount, after the policy gets matured. Thus, if investor dies, the nominee will get the significant amount i.e. the maturity as well as the death benefit during these two stages of his or her life.
- However, if the insured is alive, the insurer still needs to pay for the sum assured along with the bonus as the survival benefit.
- Today, plenty of insurance providers offer best of child plans along with unmatched maturity benefits that actually result in a timely release of payout at some important junctures of an individual's life.
- Hence, the nominee might get the certain sum once he or she turns 18 or after that. Therefore, the parents should not delay in planning the future, and ensure that the child has the financial security with him/her always.