Three cases in which your Child Investment Plan can help your Child

Child insurance plans in India don’t see many takers. This is because most people believe that they can provide for their children by investing in other schemes and policies like mutual funds or their own life insurance policies.

But it is very important that a child has an investment in their own name, because this will help them financialy, no matter what your financial condition is. This money is solely in the name of the child and can be used by them for their own education, business or any other expense they might incur.

Child investment plans are of many types and you can choose based on what you’re saving for. For example you can buy child investment plan solely for the purpose of your child’s higher education, wedding or business ventures.

Here are three important things you should know about child investment plans and why you should invest in them for your child’s future.

One of the most expensive affairs for a child is when they go for higher education or when they go for education abroad. It’s a huge expense to send your child abroad to study. This is the time when a child investment plan or a child education 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.

Not all child investment plans are education oriented though. Some child plans even allow the option of withdrawal during the tenure of the plan. 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 payouts act as an add-on for one’s health insurance plan.

Child investment plans also help your child financially in case of your death. They make sure that your child is taken care of when it comes to their financial needs.

Insurance companies offer a premium waiver if the parent passes away during the term of the policy. The child receives a lump sum amount promised at the time of purchasing the child investment plans and does not have to pay the balance premium.