How To Help Your Children Meet Their Dreams And Aspirations Through Child Insurance Plan

When parents say, “We want our kids to have the best of education at all costs”, they really mean it.

- Manish Jain

If cost is not a factor, they should be saving the right way for their kid’s education needs. As a parent, you want your children to go to the best of schools and get the best of higher education. However, keeping in mind the rising cost of education and the uncertainty involved in the funding process, it is not easy to meet them unless you have a proper plan in place.

There are insurance plans in the market that are structured in a way that they help in meeting the education need of the child. Only a child insurance plan can ensure that funds as per the requirement and as and when required by the child can be accumulated. In the event of the insured parent’s death, the plan ensures that the desired sum is given to the child at the desired age, not earlier or later. Also, in the absence of the insured parent, the insurance company starts funding the policy. This ensures that the plan to save for child needs does not get derailed.

Various investments such as public provident fund, mutual funds, shares, gold, real estate etc. are self-funded in nature. One needs to be alive to keep investing in them to accumulate wealth. But, on death, the funding in all likelihood would stop and the goal may be jeopardised. A better alternative, therefore, is the child insurance plan, which too is self-funded but in the absence of parents, the insurer funds the policy. Let’s see how.

How child insurance helps:

A child insurance plan is designed to meet the financial needs of your children, be it higher education, marriage or helping them establish a business. Investing in child insurance plans means that the polilcy payouts from such policy should be used specifically for child need and even the sum assured in case of any unfortunate event be put to sue for child needs. It’s an investment done for your child’s future and should not be used for any other purpose.