People always count the blessings and never count their costs. Therefore, to meet your children’s growing needs and your possible financial responsibilities as a parent, it is very important to plan. It is always better to start planning for your child’s future before he or she even arrives.
However, health care and child insurance plans can be a little overwhelming for many parents. If you’re one of them and need help in deciding which child plan is perfect for your family, then you’ve already found a sweet spot.
With the number of child plans available for life insurance, it’s often difficult to decide which one is the most suitable. Several factors come into play and you need to understand all of them before making a buying decision.
Choosing the right health insurance plan for your child is important. To gather relevant data, types of calculating factors are required. The online child plan calculator tools are precisely designed with three parameters that make it easier for you to compare quotations from insurers.
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What Is a Child Plan?
A child plan is an investment in your child’s future that provides for their future needs such as further education or marriage. The insurance component offers protection from unfortunate events such as the demise of the parent wherein the child receives a fixed annual payment.
The investment part of the plan is designed to accumulate money to pay for the child’s education by investing the money in stocks, bonds, and other instruments. This allows you to make sure that your child’s future is completely safe and secure.
Benefits of a Child Plan
Securing Their Dreams
If your child is to go abroad for their education or start their own business, you could save up some money upfront that they can then use to do precisely that. Every good child plan will help secure your child’s dream financially.
Income Tax Benefits
As per Section 80C of the Income Tax Act 1961, you are eligible for a tax deduction of up to INR 1,50,000 for the premium paid on this plan. Additionally, since commencement pay-out is tax-free under Section 10(10D), you also save taxes on your maturity proceeds and pay-outs.
The death benefit is a major benefit of these plans, and you need to take time while browsing through the child plans available to figure out which one is the best fit. Although these plans will never replace your love and support, they can still provide financial aid to your child.
If you include a child rider in your policy, you’ll be entitled to a waiver of premium and a personal accident insurance rider. Those are benefits provided by many child plans, and they provide additional cover and support for your child.
Under some plans, you can make partial withdrawals from your corpus when you need money. This option allows you to take care of financial emergencies when they arise. You can use the withdrawal from the plan to help pay for your child’s aspirations.
If you buy a plan when your child is young, they’ll get the full benefit when they head to college. That’s because education has been rising in cost and it’s grown increasingly important because of that. By getting a child plan, you can make sure that you accumulate funds for their college early on.
How To Use a Child Plan Calculator to Choose the Best Child Plan?
As you may already know, a child plan calculator is nothing but an online tool that allows you to specify certain parameters and yields output based on your preferences. With that said, let’s take a look at certain important parameters you need to set to find the right plan through these tools:
When investing in a child plan, you must think about future cost inflations. This way you can make wise investments and build a good corpus. It is also important to know the time frames when you need to get your investment back.
Child plan calculators allow you to specify your child’s desired course and costs associated with it. Moreover, you can also state how old your child will be when they need the accumulated amount. This allows you to keep inflation in mind while choosing a suitable child plan.
Start planning your finances and investing in your child’s future as soon as he or she arrives. Maturity benefits are often part of child plans, where the payouts are released at crucial life stages from 18 years onwards.
With a child plan calculator, you can plan your child’s goals better by making estimations based on the amount you have saved currently and the expected cost of their aspirations. This facilitates your planning process and makes it easier for you to choose a reliable child plan.
Children’s insurance policies protect your child at different stages of his or her life. Research the products on offer and compare the features, benefits and terms and conditions associated with the policy.
Using a child plan calculator, you can specify at what age your child would likely require a predetermined corpus and for what purpose. This gives you clarity in mind about how much to invest and where to invest.
When you are considering the best plan for your child, it is important to take into consideration all of the relevant information. This can include how much money you will need to save for college, as well as how long you want to invest in investment plans, which can be facilitated with the use of a child plan calculator.