Customize your child's plan to secure your child's future
12th December 2018
For all the parents, the child’s dreams and her/his future mean everything. Every parent strives to give the best to her/his child and all their financial activities are directed towards ensuring that sufficient financial reserves are built up so that the child can receive a quality education and a top career in life. As part of this financial activity, having the right kind of an insurance plan in place for securing the financial strength for your doting child is very essential. Such plans, referred to as “child insurance plans” are instruments for both insurance coverage as well as “investment”. These plans offer extensive benefits and are best suited for assuring that sufficient corpus is secured so that the educational requirements of your child are met without any hassles.
It is very well known that the costs of education, especially of higher education in India are on a rise. The factor of inflation plays a huge role here and after some years, the costs may further add to your financial burden if due planning is not done. If your child decides to opt for an education abroad, the added costs will be immense and will have a direct impact on your financial resources. In addition to the curricular costs, there are additional costs involved and a mere savings-plan does not suffice. Moreover, tomorrow your child may decide to pursue a hobby or any sports activity and may require extra support mechanism for it. This obviously requires extra expenditure and you must be in a position to cover the expenses. As a parent, you would never like any financial woes to hamper your child’s dreams. Moreover, in the highly competitive world of today, financial edge means everything. Therefore, having the right kind of an insurance plan for your child becomes very important.
Insurance companies today offer diverse options from which you can choose as per your requirements. Generally speaking, a child’s plan comes with death benefit as well as maturity benefits. The plan entitles the subscriber’s nominee (in this case, he subscriber’s child) to corpus proceeds (sum assured) and waiver/coverage of remaining premiums, in the event of the subscriber’s demise. If the subscriber survives the policy term, the maturity proceeds are payable to her/him by the insurer. Furthermore, the payable premiums enjoy tax exemption under the sections of Income Tax Act. Therefore, a child plan is wholly beneficial and offers guaranteed coverage together with options to secure investments to meet any extra costs that may be required to fulfill your child’s educational needs.
Generally, the child plans come with flexible terms and conditions vis-à-vis the payout options and investment plans. The general entry age is 18-21 years and some plans also offer multiple modes of paying the premium for the convenience of the subscriber. The payouts are guaranteed and offer total coverage of the financial reserves required for the child’s education. The best option is to list out your specific requirements are compare the plans online before choosing.
HDFC Life offers HDFC Life YoungStar Udaan - a comprehensive plan for covering your child’s educational expenses and for securing a bright future for your child. For details, click on the mentioned link: https://www.hdfclife.com/children-insurance-plans/youngstar-udaan.
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