Worried About Increasing Cost of Living Hampering Your Child's Goals? Here's How a Child Plan Can Help

Worried About Increasing Cost of Living Hampering Your Child's Goals? Here's How a Child Plan Can Help

We as parents work hard all our lives to provide the best facilities to our child, be it higher education, extra-curricular activities, marriage, etc. They are our first priority and we want to see them touch the sky! However, we all know that the cost of living and inflation are amplifying day by day. We do not want our children to face any financial constraint and be forced to give up on their dream all because of day-by-day rising costs, isn't it?

To ensure that your child does not face any hassle while achieving their goals, it is essential to be financially secure in today's time. Getting a child plan in India is one of the best ways to financially secure your child's future and give him or her the freedom and confidence to pursue their career without any financial hassle. Apart from financial security, it will also give the parents peace of mind that their child's goals will not be hampered even if they are not around to provide for them.

Today, there are various child plans in India available for us to choose from. Moreover, every child has different goals. Therefore, it is imperative for us to go with the child plan that suits our child financial requirements the best and ensures that our child does not face any constraints in the coming years.

Let us first understand what child plans in India are.

Child Plan in India

A child plan in India is a life insurance savings plan that is dedicated for the child’s upbringing. It helps your child achieve his or her dreams without any financial constraints. It also ensures that your child is financially protected and can continue to achieve his dreams and goals. Investing in a child plan helps you build a corpus and helps you provide the best facilities to your child in the coming years.

This plan provides a lump sum amount in case of the parent's unforeseen and untimely demise (or the policyholder). This will ensure that your child is financially protected even when you are not around and can seamlessly continue with his or her life. This has become necessary in today's time and coming days, keeping in mind the increasing cost of living and inflation.

A child plan in India provides various benefits to the policyholder. It provides a lump sum amount of corpus, tax benefits, etc. Let us understand the benefits in detail.

Advantages of Investing in a Child Plan in India

Financial Security

We all want our children to live hassle-free and secure life. We never know when we might face any unfortunate uncertainty, right? Therefore, it is essential to be well prepared in advance. Investing in a child plan in India financially secures your child in case of the parent's unforeseen and untimely demise (or the policyholder). This ensures that your child's goals are not hampered and he or she does not face any financial inconvenience, even when you are not around to take care of them!

Lump-Sum Corpus

Investing in a child plan in India has another benefit of a lump sum corpus. It provides a lump sum corpus upon maturity of the plan. This will help your child achieve his or her dream without facing any hassle.

Tax Benefits

Did you know that you can avail of tax benefits if you invest in a child plan in India? The premiums paid by the policyholder for this plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. The policyholder can avail up to Rs. 1,50,000 annually. However, tax laws are subject to change from time to time.

Peace of Mind

Investing in a child plan in India gives the parent peace of mind and lets him be free of worry when it comes to securing his child financially. Moreover, one does not have to worry about how his child will achieve his dreams in his absence.

Dual Benefits of Investment and Insurance

A child plan in India not only provides financial insurance to your child, but also provides the policyholder to be able to invest his money in market-related options for high returns. The policyholder can invest in shares, stocks, bonds, equity, etc., depending on his or her risk appetite.

Protects Your Child During Inflation and Rising Cost of Living

We know that the cost of living and inflation are rising day by day. We do not want this to hamper our child's education or long-term goals. Investing in a child plan in India secures your child financially, even when the cost of living is increasing day by day.

Protects the Child in case of Serious Illness

We do not know when we might get diagnosed with a critical illness, right? Keeping in mind that the medical treatment cost is increasing, it is imperative to be well prepared in advance. A child plan in India lets the policyholder make partial withdrawals in case of a financial emergency for medical treatment.

Rider Benefits

A child plan in India provides rider benefits to the policyholders. Instead of investing in a whole new policy, the policyholder can avail these rider benefits for extra facilities and advantages. Rider benefits include critical illness rider benefits, accidental death rider benefits, waiver of premium rider benefits, etc. Please note that riders are not mandatory and are available at additional cost.

Provision of Loan

There may be a situation wherein the policyholder may require taking a loan in case of a financial emergency for his child. The child plan in India comes with the benefit of the provision of a loan against the policy to the policyholder.

Helps Develop a Habit of Saving

Another benefit of investing in a child plan in India is that it helps you develop the habit of saving, which is necessary for today's time.

Wrapping Up

Investing in a child plan in India has become necessary in today's time, keeping in mind the rising cost of living and inflation. It financially secures your child and ensures that they do not face any hassle, even when you are not around.

Disclaimer:

*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

Suggested Plans

Bharti AXA Life Guaranteed Wealth Pro

  • A non-linked, non-participating individual savings life insurance plan
  • Flexibility to choose the payout structure
  • Multiple income options
  • Option to receive tax free income beginning from the second policy year itself
  • Option to get lifelong income along with life cover till 100 years of age

Bharti AXA Life Super Series

  • A non-linked non-participating individual life insurance savings plan
  • Range of investment duration and returns
  • Guaranteed money back benefits (provided policy is in force and all due premiums have been paid)
  • Income tax benefits (as prevailing tax laws in India that are subject to changes)

Bharti AXA Life Shining Stars

  • Non-linked, non-participating limited pay endowment Life Insurance plan
  • Designed to take care of the financial needs of your child.
  • Flexibility to opt between 2 Maturity Payout Options
  • Flexibility in Policy Term/Premium Payment Terms
  • A great short-term investment option for a child insurance policy.

Get Quote