3 Reasons to invest in a child insurance plan

 


Consider the day your child was born and you held them for the first time in your arms. You realized then that taking care of this small, joy-filled child in your arms was your responsibility. You will be raising, protecting, and developing this small individual into a dignified person. And that responsibility is surely not easy.

Your primary responsibility as a parent is to safeguard your child's future, and purchasing a child insurance policy is an excellent place to start. A child insurance plan offers you the advantages of investments in addition to giving your child the safety net you would desire for them. If you haven't already protected your child's future, here are five excellent reasons why you should.

 

Build for the Future Education

You can choose between two different kinds of child insurance plans:

·         Unit Linked Plans

·         Moneyback Plans

You have the choice to make regular investments in an equity fund with ULIP plans. Profit therefore from market performance. Additionally, it enables you to invest in debt funds. As a result, you can safely maintain the corpus you have built up over the course of your investment while simultaneously managing the investment risk associated with equities funds.

If you wish to keep away from the stock market, you can invest in debt funds under the ULIP plan, but you can also participate in endowment plans. These plans provide a guaranteed maturity value so you can be certain of the sum you will get when they mature.

 

Collateral for Loans

It makes sense to invest in one of the best child plans if you intend to purchase a personal loan or an education loan for your child. The majority of institutions will accept it as security for loans. For instance, a child plan will be of extremely helpful to your son or daughter if they desire a lump sum payment for higher study in India or abroad.

 

Coverage Against Disability

The unexpected uncertainty that life provides parents with are among the largest obstacles. If you experience a severe disability, it will have an adverse effect on both your ability to work and earn the same amount of money. A child insurance plan assists in reducing these risks and pays for all upcoming premiums to ensure that there is no harm done to a child's ability to pursue a higher education.

 

 

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