Being a parent is the most responsible job in this world, and every parent has the duty of securing his or her child’s financial future.The simplest and most effective way to achieve this goal is to start investing as early as possible.
It is impossible to predict the future. There is no guarantee that you will be around when your child goes to college, applies for MBA at IIM, or seeks education in foreign universities. However, sensible financial planning can make sure that your child is free from financial constraints even if you are not physically present to see him or her reach the pinnacle of success.
Planning Your Child’s Future
We live in a globalized world where good education is the key to a successful and respectable life. Today, a talented individual with quality education can enjoy fantastic offers and opportunities from global firms and companies. However, quality education does not come cheap. If you want to avoid risking your child’s talent and potential, then you should start planning as early as possible.
There are a wide range of insurance policies available in the market that you can utilize to secure the financial future of your family and children. A simple term insurance policy that offers a lump sum payment upon your death can go a long way in securing your child’s future.
However, you should keep in mind that conventional insurance policies are ideal only for general financial stability. Hence, it is advisable to check out specialized child investment plans when planning for something as important as your child’s educational future.
Advantages of Child Education Plans
A child insurance policy makes a lump sum payout immediately upon the death of the policyholder. This means that your child’s financial safety will not be affected even in the sad event of the death of a parent.
Further, the child insurance plan, unlike other policies, will not come to an end after payment of the death benefit. The policy will continue to its maturity date — normally the child’s 18th birthday. Thus, the child is assured of periodic payouts that can be used to meet the cost of obtaining quality education.
In the event you survive, then you can use the maturity benefits and other savings to finance your child’s education. You can periodically review your investment strategy and fine tune allocation of funds to various asset classes to maximize returns. This will ensure the corpus is large enough to help your child gain admission to quality colleges and courses.
Investing in a child plan will prove to be a smart decision irrespective of whether you survive or don’t survive the tenure of the policy.In either case, you can ensure lack of funds will never affect your child’s efforts to maximize his or her talent and potential through quality higher learning.
Read more about child investment plans by HDFC Life.
About HDFC Life:
HDFC Life, one of India’s leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions
