Plan early for your children’s education expenses

Your child is the apple of your eye, and one of the most important things in your life. You aspire to see your children becoming something in life, getting a good education and living a good life. How would you plan to do all this when life as it is today is very uncertain and you never know what will happen to you.

What you would need to do is save over the long term so that you can fulfill any financial needs with regards to education, marriage etc. One way to achieve your  goals is to buy child plans. These plans can be bought with a specific goal such as your child’s higher education, his or her marriage etc.

A child insurance plan; is a type of lifetime insurance that offers protection to the minor during his or her lifetime. These plans are usually bought to secure inexpensive and guaranteed life cover for the child. Some plans offer guaranteed growth in the cash value during the life time of the plan and sometime allow a certain sum to be withdrawn after the child matures.

Such plans are issued for lower maturity value as compared to college funds etc. Child insurance plans in India are planned in such a way that they meet the needs of your children monetarily whenever needed. You can save money in the longterm and get to use the same, when you make sure that the year of maturity coincides with the beginning of your child’s higher education.

A child insurance plan would allow you to save in regular installments over a period of time,  which is then invbested by the insurers who pay a lump sum on maturity of the plan.

How do such plans work?

The child is the nominee of the insurance plan. The plan makes sure the financial needs of the child are taken care of, incase something happens to the parents. This would mean that the insurance policy is able to provide life insurance cover for any monetary needs your children may have in the future.

To explain further this mean that a certain sum is paid to the child on the death of the parent. Only a child insurance plans offers a premium waiver benefit. This means that the child insurance plan continues to remain active even after the death of the parent where the insurance company pays the premiums for the policy.

In such a case the child will be paid on the death of his or her parent; but will also get another sum on maturity of the plan.  Some plans also have an option of regular payouts so that your child has the funds he or she needs for education or even marriage.
Estimating the future financial needs your child may have, before deciding on the Child Insurance Plans, is a prudent choice you can make today. Opting for a plan that offers the premium waiver benefit is very important when deciding on a plan for your child.

[Source: https://tackk.com/eques5]