HDFC Child Insurance Plan

Importance of HDFC Child Insurance Plan

By: Sunder Singh
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As a parent, you must always be worried about your child’s secure future. You will wish to fulfill his/her dreams and aspirations. With this wish, you must think of investing in something which can make your child carefree to fly without worrying about finances in future.

And what better than investing in a life insurance plan? Creating a financial corpus for your child is one of the best gifts you can give them. Child insurance plans are policies that offer you to invest for your child’s future for a longer duration of time. It protects your child financially in your absence in future.

One of the most significant child plans is the HDFC Child Insurance Plan. It provides the ideal combination of insurance as well as investment for your child.

Here are some of the benefits provided by HDFC Child Insurance Plan:

 

  Investment for your child’s higher education

Inflation is threatening every individual’s life. Looking at the current increasing rate of inflation, it becomes essential to save for your child’s future. Education is becoming costlier day by day. Nowadays, you have to shell out more money for your child’s primary and secondary education than for his/her graduation. To combat this problem of paying massive fees, you must invest in HDFC Child Insurance Plan.

 

  Addressing future needs

Apart from education requirements, HDFC Child Insurance Plan also helps you in meeting your child’s future needs. For instance, you can utilize the investment for your child’s higher education, critical illness, marriage, etc. In your absence in future, the money remains invested until the end of the policy term and is paid to your child.

 

  Protection with the waiver of premium

HDFC Child Insurance Plan provides life insurance coverage to your child not just for his future needs, but also for the basic needs in case of untimely demise of parents. The premium will be waived off for your child in such cases.

 

  Creating a corpus

Investing in HDFC Child Insurance Plan will get you into the habit of saving at an early stage of your child and build a corpus for his/her future. Depending on your capacity to take risks, you can opt for either traditional child plan or unit-linked child plan. Whichever plan you use, a large corpus will be available in your hands to meet the financial requirements.

 

  Tax benefits

The tax benefit is an additional advantage that you will find in HDFC Child Insurance Plan. A child insurance plan helps you to save tax. You can avail tax deduction on the premium paid for child plans up to the maximum amount of Rs.1.5 lakhs under Section 80C of the Income Tax Act. In addition to that, the maturity amount of your child insurance plan also becomes tax-free under Section 10(10D) of the Income Tax Act, subject to specific terms and conditions.

 

The Bottom Line

As they say, if you want to dream big, you need to take every small step correctly. Similarly, if you have a dream of giving your child a financially safe and secure future, then it is crucial that you take utmost care in making even the smallest decisions.

One of those decisions is to invest in a child insurance plan for your child. HDFC Child Insurance Plan is one such plan that fulfills almost all your child’s dreams.

So, do invest in one but make sure you read all the terms and conditions laid down in the policy to build a happy future for your child!

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