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Pros and Cons to Investing In Child Plans

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What are Child Plans?

There is a child plan or child insurance plan, and if it comes with child insurance, there is nothing like it. It’s good to have savings and secure life in one go. The savings plan tucked along child insurance makes sure the corpus is built over a long time. It gives you the option of getting good returns that can be re-invested over time. Child plans are always attractive and if there is a child education plan attached, it becomes all the more useful for the parents. Every parent looks for the best child plan. You can pre-define the age from which you expect the returns you should get for your child’s education. The stages are like when your child attends school for the first time, goes for higher education or gets married. These are the stages you will need the finances to consummate the events.

What does a child plans offer

Child plans or child education plan is financial planning or tool that helps you plan a secure future for the child. Your child will never face financial insecurities in any situation in the future.

  • Protection for the long term. It gives financial protection in the future that is a long way.
  • There is a life cover too. A life insurance cover to secure the family will be an added advantage
  • A good plan offers a waiver of premium, and that is a great benefit. If the plan offers a waiver on premium in the future in the event of the demise of a person, it is an added benefit.
  • A tax benefit under section 80C of the IT Act will be a benefit you can hardly resist
  • There is peace of mind after you avail yourself of this child plan with insurance benefit
  • There should be an option of periodical withdrawals. It is going to give you an added advantage.
  • You can pre-define the times or stages when you might be needing the returns
  • There is accrued bonus in the long term. It is as per the plan of the children
  • You will be getting financial stability
  • There are provisions of loan facility
  • You may get immediate or future cash that you might need

Why a Child Education Plan?

A child education plan is useful when the child is to be sent for higher education. The plan will come in handy in such a situation. Education these days has become quite expensive. The tuition fees of colleges providing professional courses are rising exponentially.

For your child’s education, especially professional education, it is important that you make some provisions right from the time the child is quite young. You should be financially ready to support your child’s education. Investing in a child plan will be very helpful to you in meeting these requirements. The child will receive the financial benefits even when you are not around.