The Boon Of Insurance For Your Young One

The responsibility of parenting is enormous. From the moment one comes to know that have been blessed with this ultimate gift, preparations of all forms begin - buying toys, reading all kinds of books on the topic and in some cases even taking classes. However, the challenges of raising another person involve more. In India investing in a life insurance for a child is popular because of the pay out that it will enjoy at a later stage. Unlike the U.S., in India there is no concept of gift tax life insurance as well.

There are quite a few reasons due to which parents today consider insurance for their unborn or toddlers:

Medical - Health:

As parents one never wishes to think that their little of bundle of joy or unborn may fall sick but it is an eventuality which one must prepare for with the gift of insurance policy. These policies are usually not very expensive. There are a number of plans – some providing outpatient help while others cover hospitalisation. There is capping on the extent of cover available for different diseases and aspects and the same largely decides the periodic premium sums.
Lifestyle and others:

Education is a major hurdle no doubt, but often it becomes the sole focus and other essential areas get overlooked. If the idea is to get holistic protection, and to secure coverage for all the phases and major aspects, one should consider the gift of life insurance policy. There are various expenses which will shape the child’s future such as art classes, coaching for sports and allied materials as well as other specialised training costs.

Education and learning:

Children plans for higher studies and further learning related allied expenses need to be planned. These plans are initially done keeping in mind certain probabilities but should be revised from time to time based on the specific goals and inclinations of the child. A number of options are available here such as Insurance, MFs, FDs, unit linked plans among others. Coverage should be planned keeping in mind payouts like tuition fee support, college education and preferably a higher education reserve. Pay outs should be synchronised to meet the liability at the time it arises. While choosing the plan it is critical that one should plan out the probable milestones and if need later arise opt for additional coverage.

Couples today prefer planning in advance and opt for products such as star wedding gift life insurance policy which is available to adults aged up to 40 years and provides all round cover such as those during pregnancy as well as coverage including congenital issues.

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