Three things to consider when planning your child?s future.
Posted by Jessy Jose on January 29th, 2018
One of the main reasons people invest their hard earned money is so that their children would have a good future. Child investment plans are the best way to save for your child’s future needs. Planning for your child’s future can be expensive. There’s higher education, businesses that might need investment or even a wedding that you will need to fund.
Child insurance plans in India don’t see as many sales, but they are something everyone with a family to take of must consider investing in. An investment can help you fund your child’s higher education, their education abroad, their businesses and their weddings. Simply saving for them in property and jewellery is not enough for their expenses.
Today, one of the biggest expenses parents face is their child’s higher education. An MBA college education can easily cost you close to 20 lacs. You need to plan for such expenses way in advance, when your children are just toddlers.
Planning for your child’s future is something you should take very seriously, here are some tips that will help you in doing that.
- Expense Planning: Education is one of the most expensive things that you need to plan for. It’s a huge expense to fund your child’s education in a good school in our own country, let alone sending them abroad for higher education. This is the time when a child savings plan comes in handy. There are many child investment plans that are solely dedicated to your child’s education. These plans come at a minimum premium and pay you a lump sum at the time of maturity. They are often sufficient to pay for your child’s college and higher education and are especially helpful if your child wishes to study abroad.
- Medical Expenses: Children are prone to injuries and diseases and medical treatment. Even a simple procedure like an appendectomy can be very expensive. Some child plans allow the option of withdrawal during the tenure of child investment plans. This can be used for medical treatment of the child when he or she falls ill. Such partial withdrawals come in very handy when the child is hospitalised due to an ailment, minor accident or a more serious medical condition. The best child plan helps to reduce the financial burden caused by medical expenditure and such pay-outs act as an add-on for one’s health insurance plan.
- Life Insurance: Your life insurance plans can benefit your child in your absence. Life insurance plans pay a lump sum to the beneficiary of the deceased when the inevitable happens. Your child can use this money to fund their education or business.