Child plans- how to use them to secure your child future
by Jessy Jose An Insurance AdvisorHaving a child is a big decision for a couple. It means a
lifelong commitment to taking care of the child, his or her needs, planning for
their future, education, marriage and business and providing all you can for
them even in your absence. There are ways to ensure that your child is taken
care of even if something were to happen to you. These tools are in the form of
investments, insurance and child plans.
A good parent plans for their child’s future right from the
time they are born. Children need money at various stages of their lives, be it
for higher education, going abroad or starting their own business venture.
Parents need to always be prepared for whatever financial needs their child may
have as long as they are dependent on them. There are various child investment
plans and child insurance policies that ensure the financial security of your
child. There are two major tools that help you save for your child’s future.
Here’s what they are and what they do.
1. Child Life Insurance Policy: The
value of a child life insurance policy is highly debated. The basic function of
these policies is to help you save the insurance amount for your child so they
can use it as per their need. Here’s how a child life insurance policy works,
you buy the policy when your child is young, say 10 or 12 or even when they
turn 18. When your child completes the term of the life insurance plan, they receive the insurance amount. This money can then be used for
their education, for the down payment on their own home or as an investment in
their business.
2. Child
Plans: Child plans are mostly created with a goal to save for your child’s
education. But some child plans are not only education oriented. They even
allow the option of withdrawal during the tenure of the child investment plans.
This
can be used for medical treatment of the child when he or she falls ill. Such
partial withdrawals come in very handy when the child is hospitalized due to an
ailment, minor accident or a more serious medical condition. The best child
plan
helps to reduce the financial burden caused by medical expenditure and such pay-outs
act as an add-on for one’s health insurance plan.
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Created on Nov 30th 2017 00:18. Viewed 854 times.