Child plans- how to use them to secure your child futureby Jessy Jose An Insurance Advisor
Having 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.Planning for a child’s future is not simple. But these investment tools can help you a great deal. Invest in these at the right time to help your child have a bright future.
Created on Nov 30th 2017 00:18. Viewed 638 times.