Why is a Child Plan important?

Once you become parents, your life tends to revolve around the lives of your children. Most of the parents are so engaged with their children in their day to day activities they sometimes forget to think about the long time plan for their children. All parents want the best for their child starting from the food they eat, the clothes they wear, the schools they go to, their marriage, etc. and they also start saving from a very young age.

However, most of the parents do not invest enough for their child’s secure future. There is a whale of a difference between saving and investing. The outcome or rather the returns are way higher in investments than savings. Hence every parent needs to invest in a child plan.

What is a Child Plan?

A child plan is essentially a mix of insurance plan and a savings plan. The savings part of the plan helps in aggregating a corpus amount for over a long period and receiving decent returns. The investor or the parent can pre-define stages according to their requirement. For example, they can request returns after the child starts high school, or he or she becomes a major, etc.

Similarly, an insurance plan makes sure that your child has financially secure life coverage in case of your unfortunate and untimely demise. This is a great tool in giving a secure life for your child. It makes sure that financial insecurities do not come in between your child and his or her dreams.

Advantages of having a child plan

1. Your child’s education is taken care of especially given the fact that higher education has become so expensive.
2. A proper child plan prepares the parents for their child’s dream.
3. These insurance and saving plans will not burden your child with debts after they graduate.
4. They also take care of any untimely expense that has hit the family or the child.
5. A child plan helps your child to concentrate on dreams rather than worry about his or her future.
6. In case of any unfortunate demise of the parent the life of the child mostly remains financially secure.

FAQ

Q1. When is the right time to take up a child plan?

A1. A parent is never too early to start thinking of taking up a child plan. The earlier the parents think about this plan, the better it is for the child’s future.

Q2. Are they any single investment plans?

A2. Child plans are available in different formats in the insurance market. Depending upon the age, income, lifestyle, and goals of the investor, most of these insurance companies offer plans. A thorough perusal of the plans available can give a fair idea.

Q3. What are the important advantages of taking up a child plan?

A3. The future of the child becomes financially secure; the child does not have to compromise on his/ herd dreams owing to lack of finances. Apart from these, there are many advantages to taking this insurance plan.

The number and variety of plans available in the insurance market can get slightly overwhelming for the parents or the investor. Hence the parents or the investor are advised to go through the terms and conditions of the plan in great detail and then sign up for the best one.

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