Are your savings enough for your child?
The moment you took your newborn first time in your hands you committed to yourself that you will give the best possible life to him/her. From that moment onwards you started planning and saving. But are just those savings enough to secure your child and his future?
Life is not so simple and it never comes as we expect. In fact, it surprises us with something that we never thought it could bring to us. Preparation for the future is something we all look forward to but there can be some unexpected events which we never want to look forward to but we have to prepare for them as well in advance. That is what insurance is all about. To go beyond saving, you need to invest in a child plan.
What is child plan?
It is an investment made by the parent or proposer to accumulate funds for the child’s future. The parent insures his/her life and ensures that if something unfortunate happens to him/her, child’s future is safe.
Since the insurance plan is bought for the child it should always be linked with major milestones of the child’s life. For instance, it can be marriage or business. Or it can be higher studies as well. What you think your child may need after a certain number of years, is something for which you need to invest in child plan. This is the reason you need to pick a right number of years to invest. The maturity time should coincide with the time period when your child will require your financial support to fulfill his/her dreams. For instance, if your son is 10 years old, he might want to start his own business when he will be around 25 years of age. To correspond the maturity date with that time period you should get a child plan with investment period of 15 years from the tenth birthday of your child.
A child plan not just offers secured financial future for your children but it also offers other kinds of benefits like waiver of premium, which ensures that the premium will be waived off if something happens to you and the policy is still active. Similarly, there are other benefits you can choose while choosing a child plan.
Savings are not enough. You need to think ahead of time and invest your savings to get multiple benefits simultaneously.