Secure your Childs Financial Future

Dec 28th, 2010No Comments

Children are pretty much the centre of our lives and this is all more relevant in the Indian context. Parents invest and save for not just their children’s education, but also for their marriage and future.

Social orientation makes the Indian parent not just plan for their own retirement but also ensure financial legacy even when the child is well settled in life.Independent researches indicate that life insurance has emerged as an important financial instrument for protection and contractual savings today. Increasingly, young people are showing affinity to invest in life insurance at an early stage.

The trend is reflective of the fact that young people are starting their careers early today and want to achieve major material milestones of life, such as owning a house, buying the first car or even planning for their children’s future, earlier than their parents.

A baby brings along a whole new set of domestic and financial responsibilities for parents. Research indicates that over 119 million parents in India in the 25-44 years age group are looking for financial planning to secure the future of their children.
The question that arises from here is why life insurance has an important role to play in planning for the needs of various life stages of children.Effective financial planning is eventually about appropriate assessment of the future needs of your child. Given your child’s age and current inflation levels, it is critical to estimate the corpus that would be required for your child’s future needs, such as higher education or even marriage.

This would help you identify various investment and life insurance plans that can help you address all these needs when your child grows up.Planning for protection against unforeseen circumstances in life should be an important consideration of your financial planning. This is because, no matter how undesired it may sound, it is always good to plan for the uncertainties of life.Tomorrow, no situation in life should create a hurdle and result in our children’s future being compromised with.

Child plans offered by life insurers usually waive off future premiums in case of the demise of the policy holder. The insurance company takes care of the future premiums and the full amount is given to the child upon maturity.

Last but not the least, parents and children alike aspire for more today. No parent is satisfied to see his or her child excel in academics alone.There is strong focus on extra-curricular activities and all-round development of the child. Today, there are specific 360-degree life insurance plans with additional features that provide resources for all-round development of your child under all uncertain circumstances.

These life insurance plans provide the flexibility to opt for additional payments during the policy tenure to support talent which may not be evident initially when the policy is bought.Life insurance has emerged as a key component of financial planning. The relevance of life insurance as a long-term savings tool also comes from its primary feature of being need-based financial instrument that helps you meet your every life stage need, including the specific responsibilities of a parent.

Prepare yourself better as a parent by saving and investing in child insurance early. Start early to reap the benefits. Give your child a great future.

LIC INDIA offers various Child Insurance Plans specially designed to meet the rising educational and other needs of growing children.

Click Here to know more about Child Plans offered by LIC INDIA

Kevin Gala

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