Give your child's vision wings to fly
02th June 2021
Giving your child wings to fly by fulfilling their dreams means everything to parents, and as a parent, your sole purpose in life becomes making sure that you give your child the best of everything. Having said this, children need to be given the freedom to pick their own goals or dreams, and holistic financial planning on your part can go a long way in shaping their future. Systematic financial investment from an early stage of their childhood can be highly beneficial in consolidating the funds needed to secure your children’s future.
Despite a bouquet of investment instruments available in the market, unit-linked child plans are one of the best-suited investment vehicles designed to fulfil your child’s dreams and ambitions.
Reasons to Choose Child Plans
Flexibility to Adapt to your Child’s Dynamic Goals
Educating a child costs a bomb and could potentially drain your life savings when your financial plans go awry. Alongside, your child’s goals may change from time to time, which may put your savings in jeopardy for lack of proper financial planning. Child plans are designed to tackle such uncertainty and fluid education/career choices that your child might have. Additionally, these plans also factor in growing inflation and help accumulate a corpus over a period that can be utilised for your child’s growing educational needs. Child plans offer payouts in instalments and a lump sum amount is paid when the plan matures upon your child reaching a prescribed age.
Partial Withdrawal Facility
Most child plans offer partial withdrawals to fulfil the short to medium-term financial needs when your child is on the verge of reaching certain key milestones such as completion of high school, and admission into a college, or competitive entrance exams. Substantial payouts are made periodically in the form of a fixed proportion of sum assured that can greatly reduce your financial burden while meeting your child’s educational needs.
Life Insurance Cover to Ward off Uncertainty
Life is uncertain and there cannot be a bigger blow to a child than losing his/her parents. This uncertainty of life is a constant worry of every parent who holds their child’s future dear to their hearts. Child plans help ward off this uncertainty to an extent by continuing with the coverage until policy maturity to fulfil the child’s needs as planned, in the event of a parent’s demise. Moreover, the premiums for the remaining policy period also get waived off.
Avail Tax Benefits
While saving for children’s future, the insured parent can claim tax exemption on premiums paid towards child plans for upto Rs. 1.5 Lakhs annually as per section 80C of the Indian Income Tax Act, 1961, and the maturity amount is also non-taxable under section 10(10D) of the Income Tax Act
Opting for a child plan can most certainly give your child wings to fly by taking care of their educational expenses but it also ensures that you can plan and save well on wealth accumulation for your retirement. Investing in comprehensive child plans such as HDFC Life Young Star Udaan ensures that your child’s academic and non-academic expenses are met without burdening your pocket. However, before investing in a child plan, arriving at an exact corpus amount for your children’s future is essential and child plan calculators available online can come to your rescue in this regard.
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