Should I plan for child’s marriage? How much importance should I place on my child’s marriage as a financial goal ?
The future is unknown and uncertain! Parents are absolutely clueless about how their children will grow and what they will grow up to be. A parent not only wants the children to have a good education, but also wants to celebrate their life’s important occasions like marriage.
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Child plans allow parents to choose a life cover amount and how and where they want to invest their money for their child’s future. If anything happens to the insured parent during the policy term, the child receives the payout. We can understand how these policies work better through an example. Mr Kumar purchases a 10-year child plan for his 7-year-old son. He opts to make annual payments that get invested for his child’s future. Seven years after purchasing the policy, Mr Kumar meets with a fatal accident. After filing a claim, his son receives regular payouts, which is a part of the plan benefits. Mr Kumar’s son does not have to pay the remaining three premiums. On maturity, he receives the remaining maturity benefit amount, allowing him to use the money for his higher education.
When you purchase a child insurance plan, you can enjoy:
1. Building a Corpus for Your Child’s Education
As a parent, you want to ensure that your child has everything they need to succeed. With a child insurance plan, you can build up a significant corpus for their future education. By investing instead of simply saving, you can give your child a higher education abroad or pay for the best engineering and medical colleges in India.
2. Returns That Combat Inflation
If you opt for a market-linked child plan, you could earn anywhere between 10-12% returns on your investment. Since inflation is currently around 6%, your investment allows you to battle inflation with ease.
3. Partial Withdrawals for Emergencies
If there’s a medical emergency, you can make a partial withdrawal against the policy to pay for your child’s treatment.