Got a Toddler at Home? Here’s Why Buying Life Insurance is Crucial
Parenting is probably the most awaited yet one of the most challenging phases you go through in your lifetime. You want to provide every facility available to your child and watch them grow. However, the modern challenges for Indian parents are increasing with the rise in the cost of basic needs and quality education. You must understand that bringing up a child is as much about finances as it is about emotions.
For your child’s secure future, you should ideally start thinking about investing when you think of having a baby. As your child solely depends on you, it is your responsibility to help them stand on their own one day. A common mistake most couples do is ignoring insurance needs. Don’t let them be you.
To ensure your children’s future is financially secure and comfortable, you should make sure to invest in relevant schemes that would benefit you and your family in the future. Just having a strong investment plan is not enough to secure a child’s future. It would help if you considered other unforeseen situations and dangers about their life as well. Begin by selecting the right life term insurance.
Here are some of the useful financial instruments that will help you plan your child’s future better:
1Health insurance
Health insurance is a necessity today. The cost of healthcare is touching skies, and it is not always affordable to avail of quality treatment. Imagine the rise of the expenses in your child’s growing years. Family planning requires you to prepare for medical emergencies as well. As without it, you might end up draining all your savings. With a health insurance policy, most of the medical expenses are covered, thereby keeping your savings intact for your child’s future needs.
Image Source: financebuddha.com
2Term Cover
Being a parent, you must have endless aspirations for your child. And no matter what, you do not want anything to come in the way of fulfilling their dreams. Life term insurance is a financial instrument that will enable your family to continue with their lives, even in times when you are no longer around. This product forms the foundation of any financial plan. You can choose from a lump sum or monthly payout option to ensure regular income. Make sure to compare term insurance plans online and choose the most suitable one.
Image Source: www.financegab.com
3ULIP
Ulip (Unit linked insurance plan) is the perfect financial instrument for family planning. It has a dual benefit of both insurance and investment based on your risk appetite. Ulips give you the flexibility to increase your sum assured over the term of your plan at the crucial stages of life, such as marriage or the birth of a child. It enables you to secure your life goals through substantial wealth creation over time. You can opt for a ulip plan and facilitate savings for your child’s higher education.
Image Source: www.wishpolicy.com
4 PPF
The Government of India funds PPF (Public Provident Fund). So, it is one of the most significant accounts as it is entirely risk-free. The PPF allows you much flexibility in the investment amount. The minimum amount needed to open an account is Rs. 100. The PPF account has a lock-in period of 15 years, and then can be extended in blocks of 5 years. It thus helps you benefit from the effect of compounding and you are promised a fixed return every year.
Having a child to look after comes with a lengthy list of responsibilities, so make sure to prioritize things that matter the most. Life term insurance plans from reputable insurers such as Max Life Insurance lets your family maintain their lifestyle even in your absence. You can also add riders such as critical illness cover to enhance your life term insurance policy.
Image Source: tosshub.com
