Every parent wants what’s best for their children, and planning for their future begins as soon as a baby is born. The provision of world-class schooling for the child is at the heart of this planning. With the rise in inflation, most parents are concerned about saving for their child’s future. It is critical for parents to create a corpus to fund their child’s education.
When saving for your child, you must consider the costs of education, marriage, unforeseen medical conditions, and other expenses. Also, it is crucial to incorporate an insurance policy in the financial planning of your child.
Let us discuss why a child insurance policy is important for your child’s financial planning.
What is the Importance of a Child Insurance Policy?
If you haven’t yet purchased child insurance for your kids, here are a few compelling reasons to do so right away! The following are some of the factors that contribute to the importance of child insurance:
A child insurance policy will protect your beloved child’s future even if you can no longer provide for them. When you purchase a child plan, you will be assured that your child will have a substantial amount (sum assured) that the insurance provider will provide upon maturity, regardless of whether you are alive.
It can helps you save tax under Section 80C up to Rs.1.5 lakh. Note that any death benefit or maturity benefit received under the plan will be tax-free as well.
A child insurance plan (ULIP) will assist you in beginning diligent savings to meet your child’s future needs. This constant and reprimanded savings method will provide your children with the best possible returns.
It will assist you in building a corpus for your child’s future financial needs. The plan will include coverage for premature death, preventing your child’s financial plans from being disrupted in the event of your death.
Best Child Insurance Policy to Invest in 2022
Here are a few of the best child financial plans for children in 2022:
Young Assurance by Bajaj Allianz
Young Assure is one of Bajaj Allianz’s child financial products. It is a standard child insurance policy with the addition of accidental total disability coverage. This plan is available to people as young as 18 and as old as 50. You can make monthly, quarterly, semi-annual, or annual payments.
HDFC SL Youngstar Super Premium
This is a ULIP plan from HDFC that includes life insurance. It provides an excellent financial plan for your child, with two flexible benefit payment options: Save and Save-n-Gain Benefit. Depending on the needs, you choose from Mutual funds, including Income Fund, Balanced Fund, Blue Chip Fund, and Opportunities Fund.
LIC New Children’s Money Back Plan
The LIC New Children’s Money Back Plan is a non-linked participating money back plan. It aims to offer young people with survival benefits to meet their educational, marital, and other needs. Also, the insured can avail of an additional premium. It is available for the life of a proposer aged 18 to 55 years old.
Child Advantage Plan from Bharti AXA Life
This is a simple Child investment plan with two maturity benefit options: money back or endowment, where you can opt-out whenever you wish. In the event of your death, the insurer will continue to pay the payment so that your child can benefit from the insurance. The policy term could range from 11 to 21 years.
Conclusion
Now that we know the importance of adding an insurance policy to a child’s financial planning, let us not delay. However, if you are worried about where to buy from, we have a solution. Visit Cover 360 and buy an insurance plan for your child right away.
