6 reasons to start planning for your child’s future now!

The rising cost of education is troubling Indian parents. It’s a terrifying thought for any parent-leaving his family without adequate means to lead a comfortable life. While many are quick to condemn this, there are plenty of other options for parents and grandparents keen to put some money away for a child, in order to build up a nest-egg to help with university and cherish their future dreams.

Many people won’t know where to start, because the list of products on offer – unit trusts, investment trusts, savings accounts, baby bonds, National Savings & Investments, children’s bonus bonds – can seem endless. No matter what the investment having a plan for your child when he grows up has its benefits. From the time he enters your life till the time he graduates from college, your child’s expenses are not uniform. There are lean years, just as there are times when his needs are bigger. And it helps to care it when planning for the future of your child. Below are some long-term benefits of child insurance plans.

1. Saving for Children’s Education – One of the biggest expenses that parents face is footing their children’s tuition fees. Studying in a good school does not come cheap. Moreover, if your child later decides to go abroad for higher studies or enrol in a leading Medical, Engineering or Business school, will you be able to fund the costs? The sum available on the maturity of a child insurance plan could go a long way in easing this financial burden.

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2. Collateral for Loans – A child insurance plan is also widely accepted as collateral by banks and other lenders when processing education loans or other personal loans. This could stand your son or daughter in good stead for the future.

3. Support during Serious Illness – If your child has a family history of serious illness, purchase child insurance when he/she is young and healthy. God forbid if your child were to be involved in an accident and needed to be hospitalized, a child insurance plan could provide financial support. You could withdraw a lump sum from the yet-to-mature policy to ensure that your child receives the necessary medical treatment.

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4. Disciplined Savings – Before purchasing child insurance, calculate what you are planning for, whether higher studies for your child, marriage, or even a mortgage on a house. While you do your calculations, keep inflation in mind. Prices change considerably in less than a decade. Once you have an amount in mind, buy a suitable child investment. The regular premium payments will soon become a habit and you will be successfully putting money away for your child’s future.

5. Income Protection for Your Child – This is an important benefit for child prodigies (child actors, singers and others) who earn significant incomes at a young age. Their money stands to multiply at a higher rate over a longer period when invested in a child investment plans.

6. Untimely Death of a Parent – One can never be too prepared for death. In the event of the death of a parent during the term of a child insurance policy, the insurer offers a premium waiver. Thus, the beneficiary receives a lump sum amount and is no longer required to make any premium payments on the policy.

So if you’re like most parents, you want your child to pursue dream career. At the same time, paying for college is probably one of your biggest financial concerns.By starting a savings plan early, even before your child begins elementary school, you can reduce the burden of taking on high debt to pay for his or her higher education.

Meritnation believes in education for for every student and to help every child pursue their dreams Meritnation in association with AVIVA brings to you a parent child selfie contest. All you have to do is

1. Click a selfie with your child depicting their future career aim (with props, costume etc.)
2. Upload a picture – HERE
3. Win **Study Scholarship and assured Sachin autographed goodies from AVIVA Life insurance

**T&C Applies