How does life insurance help you secure your child’s future?
Apart from good education, life insurance is a gift you can give to your child for a secured future. The specialized child insurance plans by Canara HSBC Life Insurance provide a long term, risk-averse solution to meet the needs of your child’s future, including inflated future costs of education. These plans have more benefits than just securing your child’s future, find out:
| Cushion against financial disruptions |
A focused approach |
| When it comes to securing the future, the first step is creating a financial cushion that ascertains an income flow in the future. In case of an unfortunate event, your child’s education will be protected. With insurance policies and especially those for your child, the earlier you invest the better. |
While there is so much going on in life, saving for a goal is not always easy. However, with life insurance you can yield great benefits with little monthly investments into the wellbeing of your child’s future needs. Several plans also offer a waiver of premiums in the event of an eventuality. |
| Easier well-diversified portfolio |
Tax benefits of child plans |
| Our children’s and our own future depends on our financial and asset creation goals. Most plans designed for your children offer relief from the stress of planning for your child’s future, giving you the right direction to plan your savings corpus better. |
Did you know child plans offer tax benefits on both, the invested funds and the payouts received? This reduces the financial stress that comes from regular payments and you can reinvest this amount you save from tax, in your child’s favour. |
How can you ensure maximize your returns with life insurance?
Besides providing a life cover, plans like Invest 4G can help you achieve your child’s goals with the help of unit-linked returns. All you got to do is choose the right funds. Here’s how –
- Ensure you invest the right amount in equity and debt investments
Having a balance between your investments is important to gain better returns; nor would being too safe or being too adventurous help. There’s a typical investment formula that experts suggest – Take 100% as your total investment and minus your age. Say, you are 30, then 100-30=70, therefore you should invest 70% of your investment value in equities and the remaining in debt.
- Make fund selection based on your current investment portfolio
So, if most of your investments are in safer saving pots like bank deposits, you can choose to invest in higher equity funds to balance your investment and get better returns, also vice-versa.
- Figure how much time you have and the magnitude of your investment goal
In case you wish to invest for your child’s higher education or buying a house, you may want to invest higher in equities as you have more time in hand. The longer you invest for, more is the boost you can expect on your returns.
How to ensure you save enough for your child’s future?
| Identify the future needs |
Start as early as you can |
Have adequate insurance |
| When saving, the first step should identify is a rough range of finances that may be required basis your goal. Create a broad plan and keep space for miscellaneous expenses that may pop-up. |
Saving is a habit that must be inculcated as early as possible. Also, with the rising inflation and expenses, you need to start at an early stage, considering what will be the rise until your goal is achieved. |
While we hope everything ends well, there can be unwelcomed surprises by life. Plans with an added life insurance benefit can ensure your family receives your savings and can reap the long-term benefits of the plan. |
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