Why does one need a child plan?
“SURE EVENTS” (education and marriage expenses) in a child’s life need to be financed by the breadwinner in the family. The biggest worry for any family is the untimely demise of the breadwinner. In case of this unfortunate event, there are two definite losses. One is the emotional loss and second is the financial loss. Time can heal one’s emotional loss but not their financial losses. Often, adequate funds are not available to make ends meet which aggravates one’s emotional turmoil.
A full-proof way to avoid this predicament is to save a sizable amount of money in life insurance policies. These insurance plans offer a lump-sum payment after the demise of the policyholder, which prove to be vital. However, the policy does not end there. Later, due the premium waiver options available in child plans, all future premiums are waived off and the policy continues. The child then, receives money at specified intervals. This investment ensures that the child’s expenses are secured even if the parent has passed away.