What Are Child Plans?
Seeing your kid(s) grow into a smart and bright young individual(s) is one of the most satisfying experiences for any parent. There is nothing more joyous than to see your children taking the flight of success after you have taken countless measures to ensure that they get the best of everything. All this requires financial support.
Financial planning then becomes a crucial part of parenting. Child plan is an apt financial tool that provides a combination of protection and wealth creation to ensure a secure future for your child. A child plan provides payouts at milestones of your child’s life and are designed to meet the financial requirements of a growing child. Systematic and disciplined savings through insurance plan for your child means that you are able to plan for a big goal with small savings. The tax benefit is a proverbial cherry on top.
Education and marriage are two primary milestones of a child’s life. Depending on how early you start planning for your child’s future, the key milestones would include school admission, higher education, marriage and post-marriage requirements. Once you have defined the milestone, you know at what stage how much money you may require. You can then accordingly purchase a child plan or a combination of plans to ensure that you have enough money to fund milestones like higher education, marriage etc.
A child plan, by channeling your savings builds a steady corpus that can be used to finance your child’s life goals. The life cover attached to it ensures that the financial needs of your child are also taken care of, even if something happens to you.
Watch your child soar the heights of success with a little support from Bajaj Allianz Life Child Plans.
Benefits Of Child Plans
| Benefits | Description |
|---|---|
| Support for Child’s Future Plans | All of us want the best education possible for our kids, whether in India or abroad. However, the cost of both school and higher education is increasing with every passing day. Child plans help you in meeting the education expenses of your children. Besides education, we also plan for their marriage and to support them beyond marriage, if required. You may want to go for a child plan that ensures cash flow to meet all such needs. |
| Financial Security | Child plans provide financial security during the growing years of your child. Covering the earning parent’s life is a crucial part of savings for children as it ensures there is sufficient fund and cash flow for the education and other future expenses even if something untoward happens to the parent. |
| Systematic Savings | Regular and disciplined investment over a period of time helps you accumulate large amounts which is crucial to meet long-term goals. Typically, child plans leverage this and come with a timeframe which are aligned to the Life Goals of your child for better returns. |
| Tax Benefit | Child plans provide tax benefits under Section 80C and Section 10(D) of Income Tax Act, 1961 subject to the provision sated therein. The premium paid is eligible for tax benefit under Section 80C, and Maturity or Death benefit and surrender value give you tax benefit under Section 10(10D) of the Income Tax Act, 1961. |