Life insurance to secure your child’s future: All you need to know
For most young couples, a big milestone in life is starting a family. If you too fall into this category, you’ll agree that with the arrival of a child, there are many wonderful things that new parents have to look forward to. From seeing the child take first steps and listening to the child’s first words to preparing them for their first day at school. But along with these little things, there are also responsibilities that the arrival of a child brings along.
New parents will need to save up for the future of your little one, so you can send your child off to the best schools and universities. There are also many other life goals that come into the picture, like buying a bigger home and saving up for your child’s wedding. Aside from all this, there’s also the question of securing your child’s future financially. For all this and more, there’s one answer – life insurance.
Many young parents put off purchasing life insurance for later, and eventually, as other commitments get in the way, it may be too late to invest in a robust financial product like life insurance. Also, many new parents may be plagued with questions like:
● Why should I get a life insurance?
● How will it help secure my child’s future?
● What kind of a life insurance should I get?
Why should you invest in life insurance to protect your child’s future?
There are many reasons why you should purchase a life insurance if you’re interested in securing the future of your child or children. Explained below are some such pointers, so you can get a better idea of how life insurance can help.
It helps account for uncertainty in life
There’s no way to figure out what the future holds. And as much as all new parents want to watch their children grow up, you never know when a sudden unexpected incident could lead to an uncertain event.
In that case, the future of the child becomes uncertain, because with the loss of the primary or only source of income, the child’s basic needs and goals may not be met.
ere’s where life insurance comes to the picture. With the guaranteed life cover amount offered by life insurance plans, the future of the child continues to be protected financially.
It also acts as an emergency fund
As young parents, the future may look rosy and full of hope for you. And while it could always be that way, there’s also an equally likely possibility that emergencies may crop up later in life, leaving you short of cash and unable to meet some significant expenses. These expenses could be medical costs, or they could be some education-related fees for your child.
In such cases, irrespective of the nature of the expense, the maturity benefits from your life insurance plan could help meet the expenses.
It doubles as a saving instrument
Life insurance does not merely offer a life cover. There are many kinds of insurance plans that also come with a savings element built in giving an opportunity to grow your wealth. By opting for these kinds of plans, you can enjoy the advantage of saving up for the future in addition to the benefit of a life cover. At the end of the policy term, if you survive the period, you get to access the returns on the savings element. Those funds can then be used to meet whatever milestones may be approaching at that point in your child’s life.
What kind of life insurance should you get?
There are different kinds of life insurance plans that you can choose from. Each comes with its own set of benefits. If you’ve decided that you need to invest in life insurance, but are not sure about the kind of plan to purchase, here’s a quick guide that can help.
You could purchase a savings & endowment plan
Endowment plans are life insurance plans that combine the benefits of a life insurance cover and investment. So, in addition to securing yourself and your family, you also create a corpus to meet your financial goals at every life stage.
When you are looking to secure your child’s future one thing you should consider is the inflation and rise in expenses such as education fees. Thus you should opt for a plan that helps you grow your wealth over time. ICICI Pru Assured Savings Insurance Plan that not only offers assured returns but also guaranteed additions with each policy year. The plan pays out a guaranteed maturity amount at the end of the policy term. This maturity benefit is guaranteed, so you can rest assured that your insurance policy will brings in a specific amount of funds at a given point in the future to fulfill your child’s dreams.
It becomes evident that the key to ensuring a good future for your children is to be prepared for anything that life may throw your way. And among the many financial products that can help with this, life insurance remains top priority. It accounts for all kinds of contingencies that may crop up later in life, and by choosing the right kind of plan, you can make sure that you’re prepared to protect your future and the future of your children.