When Is It Time To Purchase Life Insurance For Your Child
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As a parent, your primary duty is therefore to protect the future of your child, and a good way to start is to invest in a child insurance plan. A child insurance plan not only provides the security net you would want for your child, it gives you the benefits of investments as well. You will be nurturing, caring and making this tiny person into a human being who is worth her salt. And that indeed is no mean responsibility.
Importance Of Investing In Child Life Insurance In The Right Time
Here are five good reasons why you should consider child insurance plans, if you haven't secured your child's future yet.
1. Taking care of education:
Ask any parent about his primary concern about his child's future, and almost all will quip about the escalating cost of education in the times that we live in today. Putting your child through a good school will not come cheap. Over and above that as the years fly by, your child may decide to go in for higher studies that will cost the moon. If you plan well and invest in a child insurance plan that matures during such times, your financial burden will be relieved.
2. A habit of saving
As we mentioned earlier, child care plans come with the twin benefits of insurance and investment. Before buying a child care plan, go back to your financial plan and calculate the need for funds during the various stages of life. Calculate what you are saving for such as primary and secondary education, higher studies, marriage etc. Also take into consideration your other responsibilities such as a mortgage etc and zero in on an insurance scheme that is a perfect fit with your financial plan. While initially it may seem as a burden, paying periodical premiums will soon become a habit that will put you in good stead when your ward grows up.
3. Protection against serious illness
If there is a family history of some serious illness, you must purchase a child insurance plan at an early stage when your child is hale and hearty. In later years if your child, God forbid, were to fall prey to any such disease, the money invested in a child insurance plan will come in handy apart from your health insurance.
4. Collateral for loans
A child insurance plan is also widely accepted by all banks as a collateral if you want to take an education loan or personal loan for your child. This will greatly help your son or daughter when he or she requires a lump sum for higher studies.
5. Death of parents
One does not like to be morbid, but that having said you can never be too sure as to where and when death awaits you. In case of your untimely demise, the insurer offers a waiver on the premium on a child insurance plan and the beneficiary (your child) receives a lump sum and is no longer required to make the premium payments.
Conclusion
Thus as you can see, a child insurance policy is like a stitch in time, and like they say it can "save the nine" later and keeps your child's future financially secure.
Also read- What Is A General Provident Fund And How Does It Work
