When you are a parent, it is not only your duty to take care of your kids in the best possible way but even start planning their great future. Your kids may have some dreams to conquer and you should be financially capable to offer them support.
However, unless your child gets the quality education, he/she may not have a bright future. The cost of education when you child attains puberty and beyond will surely pinch you.
Hence, it is better to apply for a child insurance policy such as Bajaj Allianz Child Insurance Plan for many reasons.
This post will shed some insights as to why you should invest in a child insurance plan.
Reasons you need to invest in a child insurance plan
- The exorbitant cost of higher education
You are aware of how costly it is to live and educate yourself. Needless to say, quality education will surely cough up your income as it will be expensive in the future. Yes, right from school trips to events, sports equipment to higher tuition fees and more in colleges and beyond, you will need to be ready to pay huge bills for the quality growth of your child.
- Grab more for small and continued investments
When you invest some money in the form of the child insurance plan regularly, your investment compounds and become a hefty sum in the future. As a result, the assured sum will then help you keep off the financial burden and calms you from worrying about making timely payments for your child’s multiple needs.
- Helps you avoid loans
When you haven’t arranged money for your child’s higher education, you will then need to avail of the education loan and repay it along with interest as well. You may have taken an education loan in your time to cover your education cost, why take the same bus (liability)? It is the time when your savings which you began investing right away will help in the future.
- Protection and investment
When you opt for an endowment child education plan, you can avail of the dual benefits of insurance investments. You can add a premium rider waiver, and when you do that, no future premiums need to be paid even in your absence. Yes, even in your absence, your child will be able to fulfil his/her dreams without hitting glitches and hindrances. Hence, your child can visit whichever country he/she wants and do whatever course he/she wants.
- Tax benefits
When you avail a child insurance plan such as Bajaj Allianz Child Insurance Plan and also lap up some amazing tax benefits. The premium is deductible as per the Section 80C of the Income Tax Act. Its maturity is exempted from tax unlike equity shares and fixed deposits which carries an extended-term capital gains tax.
The Bottom Line
Imagine the situation – your child is super talented and you are unable to provide him the financial support to help him accomplish his dream and become successful in life. No parents would like that to happen, right? That’s when you can start investing a right child insurance plan for your kids so that you can support them during all their needs.
You can compare all child insurance plans online and pick one that suits your needs and budget. It’s time to invest in a right child insurance scheme and give your kids the financial wings to fly and realize his/her dreams without hitting blocks! All the best!