Phone NumberTo Buy: 1800-258-5899 (9 am to 6 pm)

|

Emailcustomerservice@canarahsbclife.in

|

Locate BranchLocate Branch

4 Benefits of Getting Life Insurance Coverage for your Child

dateKnowledge Centre Team dateApril 22, 2021 views231 Views
4 Benefits of Getting Life Insurance Coverage for your Child

As new parents, we tend to do all that we can to protect the future of our children. Looking for and investing in life insurance for a child is vital. The idea of saving deliberately for your child, developing your investment, and getting the advantages at a suitable time is one that, as a parent, you may have in your mind.

By investing in a fitting savings plan, you can secure the future of your child with no difficulty. Saving plans are basically a type of life insurance plan that offers people a chance to save, invest, and aggregate assets to address the issues in the future. They are planned such that it assists policyholders in building up a financial safety net in the times of need.

A life insurance policy offering coverage on your child can help you save and invest your money for your child. The amount of money received from a child life insurance plan can be utilized for various purposes; it can be for uncertainties such as the accident of your child, illness faced by your child, or it can be simply for your child's future schooling expenses.

4 Ways Having a Life Insurance for your Child Benefits you

Getting a life insurance for your child can help you in various ways. Being prepared financially for the unfortunate event always provides an edge to handle such situations better. Hence, it is better that you protect the future of your child, their dreams and aspirations.

1. Expenses for Contingencies

Surely, no measure of cash can make up for the loss of a child. Yet, should the inconceivable happen, life insurance can help pay for memorial service and related costs. Today, burial services can cost quite a hefty amount, a sum that numerous families may not have.

While placing cash into an emergency fund can be another option for financing last costs, a life insurance policy can ensure that you will have a specific amount of money from the day the policy is bought. What's more? In light of the fact that the premium expense for children is normally very low, numerous families can purchase life insurance coverage and pipe money into an emergency fund.

2. Medical Expenses

Notwithstanding memorial service costs, there might be clinical costs because of a mishap or disease your child endured before their passing that is not covered by health insurance. A term life insurance plan can likewise help pay these bills.



3. Future Protection Cost

An additional benefit of having life insurance coverage on a child is that it can help guarantee assurance when the individual in question gets older. This can be particularly gainful if your child encounters health issues over the long run and experiences difficulty getting life insurance.

In the event that, for example, the child is safeguarded with a lasting child life insurance plan, the coverage can stay in power all through their lifetime. With a perpetual life insurance policy, the premium is ensured to continue as before. Notwithstanding age or health issues, the insured will pay the same amount as they did when they bought the policy.

4. Tax-deferred Savings

A lasting life insurance policy can likewise assist the child with building tax-free investment funds in the cash value part of the policy. Since no taxes are expected on the development of the money until the time funds are removed, the cash can develop and compound consistently.

Understand tax benefits available under child insurance plans.

In case you wish to borrow funds against the policy, you can regularly do so at a tax-free low financing cost. Alternatively, if you wish to pull out your funds, you can frequently evade withdrawal charges once a specific measure of time has passed.

How Guaranteed Savings Plan can help you?

Viewing the significance of ensuring a safe and sound future by having savings to fulfil every unforeseen expense related to your child's life, life insurance for a child is an unavoidable necessity. You need a life insurance plan that permits you to save routinely to arrive at your goal. Second, you need the plan to work and your objective to be accomplished regardless of whether anything happens to you.

Introducing Canara HSBC Oriental Bank of Commerce Life Insurance Guaranteed Savings Plan that offers guaranteed benefits alongside the adaptability to pick your savings skyline.

Benefits of the Plan

  • Assured benefits payable on maturity of the policy, given all due charges, have been paid.
  • Bestows life cover for the whole term while you pay the premium just for a restricted period.
  • Improved safety for your family - Life insurance security through payment of lump-sum amount benefits on death, all excess premium payments need not be paid and guaranteed benefits payable on maturity (under Guaranteed Savings with Premium Protection Option).
  • Choice of premium instalment terms that can intently adjust to your instalment limit.
  • Multiple arrangement term choices to help you select the most appropriate approach term which is firmly adjusted to your monetary objectives.
  • A better incentive for higher premium responsibility - High Premium Booster to guarantee that you get an additional advantage for making a higher premium responsibility.
  • Tax benefits on the premium and benefits under Section 80C and Section 10(10D), according to the Income Tax Act, 1961, as altered every now and then.

Buying a term life insurance plan for a child can be an intelligent decision to guarantee that family funds stay unblemished in case of a child's demise. However, before pushing ahead, consider how much coverage your family needs, which kind of coverage appears to be best for your circumstance, and how a policy finds a way into your general financial plan.

To get suitable life insurance coverage, it is always recommended to consult an insurance expert or counsel to help evaluate your coverage needs.

Related Articles

Browse by Categories

Get a Call Back

Do you want us to call back Please fill the form below

Annual Income (In Lacs)

Our Products

TERM Insurance PLAN

TERM Insurance PLAN

Whole life cover option available

Increase your life cover with changing life stages

Return of premium & in-built protection options

Multiple premium payment options

Avail tax benefits on premiums paid as per tax laws

ULIP PLAN

Unit Linked Insurance Plan

8 funds and 4 portfolio strategies to invest

Loyalty additions and wealth booster

Return of Mortality Charge is available on Maturity under all three cover Options

Flexibility of switching between the fund options to take benefits of market movements or change in risk preference

Pos Easy Bima Plan

Top Benefits

Hassle free

Get double life cover in case of accidental death

Choice of flexible premium payment and policy term

Avail tax benefit on premium paid

Frequently Asked Questions

How Savings Plans by Canara Help You?

Every person has a unique reason to save and invest. With ULIP savings schemes, the company caters to people seeking wealth creation through capital appreciation. Contrarily, the traditional plans can help you save for important life goals without worrying about the fluctuation in fund value. All major savings plan offers partial withdrawal facility that can help you take care of unplanned contingencies. With savings plans from Canara HSBC Oriental Bank of Commerce Life Insurance, you get adequate flexibility while investing and receiving the savings benefits.

Who should invest in a Savings Plan?

Savings plan require you to invest a pre-decided amount on a regular basis. People with a regular stream of income who require a lump-sum amount after a period should opt for a savings plan. Working professionals, self-employed people and businessmen should consider a savings plan to meet their long-term financial obligations. Savings plans are also ideal for people who are risk-averse and want to accumulate funds through relatively safer mediums. These plans inculcate financial discipline in policyholders which make them crucial for every portfolio.

What is saving plan?

A savings plan is likely to be different for everyone depending on the financial goal, risk profile, returns, and investment horizon. If you are young and want to save for your retirement, ULIPs like Invest 4G or Titanium Plus plan would be the best option. You are likely to create a large corpus by your retirement through market-linked returns. If capital protection is your aim, then traditional insurance plans such as Guaranteed Money Saving Plan should be suitable for you.

How much money should you put in savings each month?

The amount that should be invested in a savings plan each month depends on the income, existing financial obligations and the long-term financial goal. If you have a steady income, you should save at least 20% of your monthly income. It is not necessary to invest your entire money into a savings scheme as investments should be diversified. Ideally, you should aim to have a financial buffer of over 10 times of your annual income.

Read More
Saving plan for retirement

The Invest 4G plan with its multiple investment options and various portfolio management strategies for capital protection is an ideal saving plan for retirement.

Saving plan for future

The Smart Goals plan with its unique features such as modification of the sum assured partial withdrawal and fund switch can help you plan for your long-term financial goals.

Saving plan for girl child

The Future Smart unit-linked plan from Canara HSBC Oriental Bank of Commerce Life Insurance is the ideal savings plan for the girl child.

Where should I invest my money?

You should spread your investments across financial instruments. However, having a suitable savings plan in your portfolio is extremely important. It ensures financial stability and also helps in fulfilling short, medium and long-term monetary goals.

What is a good age to start saving money?

When you plan to invest in a financial product, it always pays well to start early. The earlier you start saving and investing, the better. When you start investing early, the capital gets adequate time multiply. Even a small amount invested for a long time can give substantial returns due to compounding.

Tax Saving Investment for retired mother

Savings plans are tax-efficient investment instruments. Samridh Bhavishya traditional savings scheme designed to ensure regular income after retirement is the best savings plan for retired mothers.

Should you use a savings plan for retirement planning?

Yes. Retirement planning is one of the most important financial decisions of our lives. Saving plans offer a host of features that may help you build your retirement corpus. Some of the saving plans like Guaranteed Income4Life offer guaranteed returns at policy maturity. Such returns can act as a regular income stream even after your retirement to help you stay financially stable.

Are saving plans beneficial for managing unexpected expenses?

Yes. Best saving plans in India offer partial withdrawal system that can be utilized during your rainy days. Being financially prepared to tackle such odds will help you manage any unforeseen expenses in a smooth manner.

How to save tax by using savings plan?

Saving plans are known for helping us achieve our financial goals. Best saving plans allow you to grow your wealth while providing life cover. Saving and investment plans are also beneficial for tax planning. Premiums of savings cum protection plans come with tax benefit under Section 80C of the Income Tax Act. Moreover, proceeds received upon the death of the policyholder or upon the maturity of the policy are tax free under Section 10 10(D).

What is the right age to start saving money?

When you plan to invest in a financial product, it always pays well to start early. The earlier you start saving and investing, the better. When you start investing early, the appreciation in capital is significant. Even a small amount invested for a long time can give substantial returns due to compounding.

Read More
How a savings plan can help in building your child’s education fund?

Saving plans help in building wealth over time against the investments that you make. Choose the best savings plan to build an education fund for your child. The best saving plan for kids offered by Canara HSBC Oriental Bank of Commerce Life Insurance eases the stress of planning your child's future by providing a lump-sum payout on the investment.

Read More
How Savings Plans by Canara HSBC Oriental Bank of Commerce Life Insurance can help you?

Every person has a unique reason to save and invest. With ULIP savings schemes, the company caters to people seeking wealth creation through capital appreciation. Contrarily, the traditional plans can help you save for important life goals without worrying about the fluctuation in fund value. All major savings plan offers partial withdrawal facility that can help you take care of unplanned contingencies. With savings plans from Canara HSBC Oriental Bank of Commerce Life Insurance, you get adequate flexibility while investing and receiving the savings benefits.

Read More
Call BackCall Back Pay PremiumPay Premium
Chat
Back to top