Priya and Ashish felt blessed with the entire world’s happiness on holding their newborn baby girl in their arms. This one happy moment even bought a feeling a responsibility.
The safety and security of their little child became their priority. Their only aim was to provide the best education and fulfill all the goals of their kid.
One day when their baby was three months old. Ashish spoke to Priya about financial security. He said, “Presently we know we are around our kid, but what about the future? We also need to prepare for the times when we may no longer be around.
Events like road accidents have increased substantially in the past few years. Sometimes the injuries inflicted from road accidents are so severe that they either lead to a loss of life or make one-physically disabled. God Forbid, if such events occur to me it can have devastating outcomes for you both.”
Priya, at that very moment, found Ashish’s thoughts negative. However, after a while, even she pondered over his thought and suggested that they have a concrete financial plan that can take care of their child’s future. They listed down the plans they need to invest or purchase one by one. Their list is concrete and comprehensive that can even help you if you are a parent, take a look at it below;
- Term plans: Being the sole breadwinner of the house, this is a must-have in your financial plan. Every day you try to save as much money as you can so that your saved capital could be used for future events. While you are already saving money for the future, you can work smart and put your savings into good use. A term plan is the best way to secure your child’s future. Term plans are available online at comparatively lower premium rates. They offer high sum assured at low premiums. Plans like Edelweiss Tokio Life Zindagi Plus provides additional and innovative benefits like top-up benefit where your life cover increases gradually, the better half benefit where after the death of the policyholder the sum assured is received by the nominee and the spouse also gets a life cover. It is a plan that covers accidental disabilities and critical illnesses as well.
- ULIPs: A combination of insurance and stock market investment, it is ideal for people who are looking to foray into the stock market. From a parent’s point of view, ULIPs can help in wealth accumulation over time and keep you financially ready for the future. Edelweiss Tokio Life Wealth Plus is a new age ULIP plan which has a rising star benefit. As a parent, this benefit is extremely useful as it acts like a child plan. Under this benefit, if an unfortunate event of death occurs to the policyholder then a lump sum amount will be provided, all future premiums will be waived off by the company and will be invested immediately in the fund value. This will ensure that the child receives the amount even during maturity. It offers numerous perks like tax benefits, additional allocation at regular intervals that can help your wealth grow, no policy or administration charges and unlimited free switches.
- Endowment plans: Saving for your child’s goals at every stage is important. You may want to invest in your child’s hobbies in the future. An endowment plan will inculcate the habit of regular savings. Endowment plans provide protection along with guaranteed returns. These plans are ideal for those parents who are not very risk savvy. Endowment plans also provide tax benefits on both premiums paid and maturity amount.
Insurance can help you in many different ways to keep your child’s future financially secure. At the time of purchasing insurance, there are plenty of riders that you can avail and which are vital for enhanced protection.
If you are a new parent, it won’t be a bad idea for you to take some time out and list down the key things you need to start doing for a concrete financial plan.