Raising children for NRI parents comes with the promise of better exposure, global education and the ability to provide finer living standards. However, the last thing a parent wants is for children to have to compromise on dreams in the unfortunate circumstance of the parent passing away.

Sound financial planning ensures your child gets the best opportunities to achieve goals. This is why it’s always advisable to look for specialised child plans in this context as these come with an added layer of safety in the form of Waiver of Premium (WOP).

The mechanics are straightforward yet immensely valuable. Should the policyholder pass away during the coverage period, the insurer steps in to cover premium payments, ensuring the investment plan is unaffected. This crucial provision safeguards the child’s future financial well-being against all odds.

Insurance with investment

One of the distinguishing aspects of child investment plans with WOP is the seamless integration of insurance protection and investment components in it. These plans allocate premiums between insurance coverage and investments, catering to individual needs. Unlike conventional life insurance plans where coverage ceases upon disbursement of the death benefit, child plans with WOP continue to nurture the investment component until maturity. This not only ensures financial protection for the child but also fosters wealth accumulation over time.

The activation criteria for WOP are clear-cut, triggering upon the death of the policyholder. This ensures that dependents are spared the added stress of premium payments during a period of emotional upheaval. Such clarity and reliability are invaluable in navigating complexities of financial planning, especially in times of crisis.

Addressing rising education costs

The rising costs of education pose a significant challenge for parents, necessitating proactive financial planning. In case parents decide to send the children to study abroad, where educational expenses are escalating rapidly, child investment plans serve as a strategic tool for building a corpus to meet future educational needs. Whether tuition fees, books, or other school-related expenses, these plans offer a comprehensive solution to mitigate the impact of inflation and ensure uninterrupted education for the child.

Key features of child investment plans with WOP include a comprehensive blend of insurance protection, savings, and investment opportunities. The provision of financial support to the child in the event of the parent’s demise underscores the intrinsic value of these plans. Moreover, the insurance company covering future premiums under the WOP option adds an extra layer of security, reinforcing the long-term viability of the investment.

Indispensable tool

In conclusion, child plans with Waiver of Premium emerge as indispensable tools for safeguarding a child’s future. By combining insurance protection with investment opportunities and incorporating features like WOP, these plans offer a holistic approach towards financial planning.

In a rapidly evolving economic landscape where uncertainties abound, investing in the future of our children remains a paramount priority, and child plans with WOP serve as reliable allies in this endeavour.

As parents, it is imperative to proactively secure the financial well-being of our children, and child investment plans with WOP epitomise this ethos, providing a pathway to a brighter and more secure future.

(The writer is Head, Investments, Policybazaar.com)

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