Creating a galaxy of opportunities for your child

Enjoying parenthood is the happiest phase of couple’s life. Life takes a giant leap from a fun frolic couple life to responsible parents. As a parent you start thinking in the direction of child’s present and future security especially if it’s a girl child as it is being prevalent in Indian society. Every parent rich or poor aspires to give the best possible care and nurturing to their child. For that the earlier they start thinking and planning, the easier it gets to build a secure future of their child.

Although it seems it is just a child plan but planning for the future of your child is definitely not a child’s play. It requires considerable amount of investment along with your efforts to work out the necessary details right from identifying the objectives to deciding on the asset allocation plans.

When your child grows there are many needs which have to be fulfilled. Of this the most important is education. Education just doesn’t seem to get easy day-by-day becoming a major trouble element. Besides, there are other concerns which always hinder your mind like not enough knowledge, not enough savings, starting too late and so on. But the biggest worry as a parent is the risk of your unsudden death. The very thought is terrifying and shatters your heart to learn that your child will be left orphan without ample means to lead a comfortable life. Well your big worry has the biggest solution known as “Child Insurance Plan.”

While comparing child plan with term plans you’ll say why shouldn’t opt for a term plan instead of a child insurance plan as it offers a high cover at a low cost giving out a lump-sum amount to the nominee. But have your realized in term plan once the lump-sum amount is given the policy ends right there. How is your child going to survive once the money is over, how are they going to met the daily requirements etc.? Well the answer to your concern lies in child insurance plan. In child plan besides giving the lump sum amount to your child for their immediate concerns, the insurer continues investing the money on behalf of the policyholder waiving off all the future premiums till the maturity period. The benefit is your child will get the money at specified intervals of time as per the planning of the policy, to fulfill their dreams. This is the best way to ensure your children that even in your absence; their needs will be taken care of.

Although child plans are slightly higher in cost structure, the plans are justified as they give double benefits. These plans are structured to meet the requirements of child. The biggest advantage of child Insurance Policies is that they are generally market-linked allowing policyholders to invest in equities and debt or they can be traditional plans allowing investing in debt only. Besides, premium paid in a child insurance plan is eligible for tax deduction under Section 80 C while the income from the plan is tax free under Section 10 (10D).

Finally, at the end it’s not about the personal benefits that parents look for when investing in child plan. As a parent you will always want to create a shield of securities around the future of your child. A good child plan will yield high returns with every growing stage of the child. Buying a child insurance plan is like building a foster family who will fulfill your child’s dream just in case you meet with untimely loss of your life.