A sign of good parenting is represented by how well you protect the life of your child. However, when it comes to taking such financial initiatives, even the best of us take refuge from duty and put themselves in the shoes of a procrastinator.
Indian parents spend the lion’s share of their earnings after their children’s well-being — the best education, a medically protected life, and monetary protection for emergencies. Lest they fail to meet all goals, they look for solutions outside the scope of regular savings. That’s where life insurance policies come in.
An insurance company with a good track record and customer satisfaction record can potentially offer a safety blanket from all of life’s eventualities, such as death, disability, and disease — something that’s next to impossible to fund single-handedly for any middle-class city dweller. In this article, we’ll take a quick look at some preventive measures that you can take now to give your child a compromise-free life.
How to future-proof your child with life protection plans
Cover your child’s health
An apple a day can no longer keep all diseases away. To actually avert all diseases from your child, you need to rethink the professional attention he/she may need should a medical condition crop up. Life insurance policies often come equipped with health insurance benefits that offer cover against major or minor illnesses and therapeutic, paediatric, and medicinal help for your child, which will keep your family afloat in testing times. It’s wise to create a good financial backing as early as possible to circumvent having to pay high life insurance premiums and be shielded against the uncertainties of life.
Plan your child’s education
With the rising cost of education in India, the day is not far when middle-class parents will experience a pang of shock when sending their children to a good school. The boom in India’s education industry comes with an unpleasant catch — the rising access to international standard education for the general audience comes with monetary disadvantages, an unwelcome fact that forces you to invest a fortune. Even traditional courses in apex colleges across India should set you back at least half a fortune.
So, it is safe to say that the future of world-class education will be out of reach for the middle-class. Don’t feel too surprised if you have to sell off properties and jewellery to fund your child’s education. And when you are facing such a crisis, you will think back and wonder why you didn’t have the foresight to insure your child’s education while you had time.
Top insurance providers such as HDFC Life, which also provides online insurance, see the value of educating the next generation and can help you build funds for it. So, teach your child to dream big, and not let money become a hindrance to achieving your child’s passions.
Get insurance at the right age
“To the wise, insurance is best bought yesterday.”
An apt aphorism that is often forgotten by many. Let’s take a different analogy for this and dissect it for our understanding. You are relishing your holidays in a cottage in the lush green countryside of Maharashtra, and all of a sudden, the tinder-dry woods surrounding the cottage catch fire leaving you no safe passage for escape. In this turmoil, a previously kept fire extinguisher came in handy to put out enough fire to make an escape route. Thus, we can stress that keeping abreast of fire safety saved you. Now, imagine the predicament should the fire extinguisher not be there.
Likewise, getting a life protection plan on time enables you to fend off uncertainties and adversities that may hinder your child’s growth or compromise his/her safety. Start investing small and create a large corpus for your child, and while you’re at it, teach your child to be equally prudent.
Plan your child’s key milestones
As your child advances in life, he/she will need financial support at each stage — high school/college, marriage, children, and so on — making it a cycle that needs continuous security to allow for good health and fulfilment. Make sure that your life insurance policy and protection plan accommodates these life stages and stay ahead of the game by making provisions for them.
All in all, insurance is by far the best gift you can give your child to protect them from unknown dangers. After all, they are next in line to make you proud, and a good life insurance policy will best equip them to seize their dreams in a safe and disciplined manner.