Once you get married, it is essential that you always have enough resources at hand and in the form of savings to take care of all the needs that come with a growing family. To say that you acquire a new outlook on life after having a baby may well be the understatement of all time. Right from the time they are born, they child become the centre of your universe. You make all your decisions keeping their welfare in mind. Therefore, your financial goals and actions should be no different.
Financial planning for your child is crucial if you want your child to have a bright future with access to resources. Planning about the education and healthcare of children is paramount from the day they are born. Simultaneously, it is imperative that you invest wisely in avenues that provide you with a steady income or create a corpus that can be used by your child when needed. Therefore, it goes without saying that you should also invest in life insurance to protect your family and dependents from unforeseen situations.
Let us look at all the steps you need to take to prepare financially for welcoming a new life into the family:
- Secure yourself with a robust life insurance plan. First and foremost, in order to be able to provide steadily for your little one, you need to get a life insurance plan that provides cover to your family in the unfortunate event of something happening to you. This way you can financially protect your kid even in your absence. Plans like PNB MetLife Mera Term Plan provide customisable term life insurance plan with the flexibility to choose from four payout options while offering coverage for your spouse in the same policy.
- Another such avenue to save for your child’s future is investing in an insurance cum Savings plan that is specifically geared towards protecting the dreams you have for your child’s future. These Child Plans are savings plans that help you bolster your child’s financial security, and help them navigate their turning points in life, like their higher education, marriage, etc. These milestones may seem quite far for your kids but the sooner you invest, the better. Inflation rates have made sure that higher education and healthcare can get out of reach if you do not have proper policies in place. More specifically, in a child insurance plan - you, as a parent, are insured and your child is the beneficiary, with the future premiums being waived off in the event of your death during the policy term. This will enable your child & family to maintain the same lifestyle without having to worry about paying premiums. A child plan offers the best of both worlds, insurance as well as investment. When the child plans mature, your child will receive a lump sum amount or regular, structured payouts. These could make all the difference between your ability to support your child’s ambitions!
- As life progresses, of course, you should consider altering the plan according to the present needs. This means that if your child shows interest in higher education abroad, you should consider the corpus needed for such a step. If they want to pursue a professional degree, then again the corpus needed may be larger than your plan provides for. Review your child plans from time to time.
- While we are at it, make sure all your investments also have tax benefits. Tax-sheltered savings plans can be flexibly tailored to your new life after a baby. But being able to save on taxes, whether it is the yearly premium or the final payouts your child receives can make a lot of difference.
Prepare yourself financially and make wise investments for your child’s prosperous future.