Worried About Covid-19? Safeguard Your Child's Financial Future Today!
The raging coronavirus pandemic left a path of destruction wherever it went. Families continue to grieve from the losses while survivors struggle to pay their hospital bills. At such a difficult time, many parents found themselves worrying about their children’s financial future. If you’re a parent, we’re sure you’re concerned about your little one’s future as well. Luckily, you do not have to worry. Many insurers provide child plans in India. These policies allow you to build up a corpus that your child can use to fulfil their future dreams.
What Is a Child Future Plan?
A child plan policy allows you to invest money specifically for your child’s future. Apart from providing you with investment opportunities, these financial options also provide you with life cover. So, if something were to happen to you, the policy offers your child a death benefit payout. But, the policy doesn’t end there. All future premiums get waived off, and the insurer now takes over paying the premiums on your behalf. When the plan reaches maturity, your child receives the collected corpus. They can then use the money to fund their higher education or even build their own company.
How Does It Benefit My Child?
Thinking about a time where you aren’t physically there for your child anymore may seem heartbreaking. But, none of us knows what life has in store for us. The pandemic proved to us that tomorrow is never promised. So, we need to do our best today to safeguard our children’s financial future. A child plan policy does this. It helps build up a large corpus that your kid can use to fund their dreams and achieve their life goals.
Financial Planning Tips for Your Child’s Future
When it comes to investments, especially for your child, the earlier your start, the better. Most high-earning investments require time to provide you with the kind of returns you’d like. When you start investing early, you have more than enough time to build up a significant corpus for your little one’s dreams.
Find a Child Future Plan That Works for You
As with most insurance and investment products, there are several child plans available in India. You must find the perfect child plan policy based on your financial standing and your child’s needs. Always look for financial options that offer a waiver of premium benefit. When it comes to safeguarding your child’s financial future, this feature is of utmost importance. You should also select a policy term that makes sense. For example, let’s say you’re saving for your child’s education. The policy should mature by the time your kid turns 17 or 18. If you opt for a longer period, your child will not receive the maturity benefit on time.
Find a Nominee You Can Trust
The nominee will ensure that your child receives the benefits from the child plan policy on time. They might even guide your little one and advise them on how to spend the money. So, make sure you select somebody you trust wholeheartedly. Most people choose their spouse as the nominee. If you like, you can pick a trustworthy family member, like a sibling, to be the nominee.
Budget Your Expenses
Once you complete all the hard work, all you have to do is make the annual payments to keep the plan going. So, you need to create a budget that allows you to save up enough for the premium. If you default on a single payment, the policy could lapse, and you and your child will end up with nothing. By avoiding unnecessary expenses, you can easily save up the amount you need to safeguard your child’s financial future.
The coronavirus pandemic has caused a lot of pain and heartache. But, it has helped us reconsider our priorities. People are now making prudent choices to safeguard not only their future but the financial future of their loved one’s as well. You can opt for a good child future plan to build up a significant corpus for your child to rely on when they need it the most.
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"The thumb rule for retirement planning is - the earlier you start, the more you save. However, with age, your priorities change too. So, you need to factor in the cost of living in the present vis- a -vis future."
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