How Life Insurance protects your child's education and career goals?

Life is unpredictable and when it throws a challenge your way you might suffer financial troubles. When you have children, you want the best for them. You work hard day in and day out so that your child’s future is financially secured. But what if life puts a stop to your child’s dreams?

While you earn and save for your child, premature death can put a stop to securing your child’s future. Thus, you need a financial plan to secure your child’s education and career goals. This is where a life insurance policy comes in handy. A term insurance plan helps you secure your family’s financial needs when you are not around. When you buy a term life insurance policy online, you can secure your child’s education and career goals too. Let’s understand how –

1. Term plans allow you a high coverage level

Term insurance plans have low premiums. These low premiums allow you to afford a high sum assured level. A high sum assured level helps you meet your family’s financial needs. In your absence the sum assured not only helps your family to meet its financial needs, it also creates a corpus for your child’s future needs. Education costs are expensive and with time they are expected to increase. That is why you need a high sum assured to take care of your child’s education needs. A term plan lets you afford a high sum assured which would help meet your child’s future goals.

2. They are affordable 

As mentioned earlier, term plans have low premiums. Thus, they are easily affordable and help you plan for your child’s future easily. You can pay the premiums of the policy easily and secure your child’s future against unforeseen contingencies.

3. They can be easily bought

Buying a term insurance policy has been made simple with the advent of the internet. Today you can buy a term life insurance policy online from the comfort of your home or office. Moreover, when you buy the term life insurance policy online you can also get attractive premium rates and choose the best plan through comparison.

4. Term plans help in tax saving

If securing your child’s future was not enough, you get the added advantage of tax saving through the policy. Term insurance plans help you reduce your tax liability. The premiums paid for the policy are allowed as a tax free deduction from your taxable income. You can get a maximum deduction of INR lakhs under Section 80C by investing in term plans. Moreover, the benefits which are paid by the policy are also exempted from tax giving your family a tax-free corpus for their needs.

With these benefits, term life insurance policies can prove to be a game-changer in your financial portfolio. However, when you buy a term insurance plan, here are some aspects which you should keep in mind –

• Don’t skimp on the coverage amount. Remember that you are investing in a life insurance policy only to create a secured financial future for your child. Given the rising cost of education, considerable funds would be needed to fund your child’s future which can be ensured if the sum assured is optimal.
• Do not delay buying a term insurance plan. The earlier you buy the earlier can you get the coverage of the policy
• Choose suitable riders with your policy so that you can enjoy a comprehensive scope of coverage under the policy
• Go for the maximum policy tenure. The longer the policy covers you, the longer you can enjoy financial security

While you are investing for your child’s bright future, don’t forget to secure your finances with a term life insurance policy. The coverage offered by the policy along with its tax saving benefits make it an ideal tool of financial security for your child’s dreams. So, buy a term insurance plan and protect your kid’s dreams from being shattered.