Child Plan We all cherish our children and put in our best effort to give them the most success in all aspects of their lives starting with the best schooling as well as higher education, marriage and until they’re settled in their own lives.
Property taxes form the main source of subsidy for local government. They make up more than three-quarters of tax collections, and provide a substantial local source of revenue to fund K-12 education as well as fire and police department’s parks, as well as other services.
Property tax planning for child also influences local housing markets through inducing the cost of buying rent, buying, or investing in apartments and homes. In reality, planning their future, which typically involves higher education as well as marriage, is a basic target that parents across London strive to attain in their child’s life.Child Plan
However, why is this planning essential? The most common belief is that we work and have a steady source of income. Since we have other expenses, we’ll be able to pay these costs too.Child Plan
It’s Not True! In This Case, Parents Have To Be Able To See Two Things Well The First Is
1. The cost of higher education is expected to go upwards at a rate that is more than that of inflation. This is why you must create a fund to pay for the cost of future higher education as well as the marriage for your children.
Also, you must determine when in your child’s life when you will know how you will require money and for what reason. Once you’ve established that you can begin saving for your goals.
2. Have you ever thought that, despite planning to achieve the above goals, the child you have planned for might not realise what you had envisioned of his potential future? You’re thinking is true.
The future isn’t certain and as such the above strategy could fail if you and the parent aren’t present at the time your children require the most. Yes, you’re right! We’re talking about the situation that happens where; God would have it happen on your behalf.
Thus, we don’t just have to create an asset to meet the goals of our kids, but we also have to safeguard their financial futures by registering them on a child insurance policy offered by the life insurance providers.Child Plan
How Does The Child’s Plan Work?
Thus, you may choose to opt for a child insurance plan and begin saving with the purpose of fulfilling different financial goals for your child such as higher education, additional costs, marriage, and so on. While also setting up a trust for grandchildren from any unforeseen situations that may occur in the event of your sudden loss of life.
There are a few key features that these policies have:
· It pays death benefits to the amount that is guaranteed in the event of a premature death.
· It ensures the safety of the family since no costs are due in the event of a death that is not timely and the benefits of the plan remain.
· Your savings continue to grow when bonuses accrue and are added to the account.
· A low-cost term for premium payments – Plans come with 5 to 12 years of premium-paying term, or you can choose your premium term.
· You can cut down on your earnings by paying for fees monthly in ECS mode.
· Paying in a series of instalments when you need it the most. Your child will require financial aid at different stages, such as when they finish high school, college application and higher education after the post-graduation level and graduation and even wedding.
· You can select one of the frequencies that allows you to take out a set percentage for a specific frequency.
Reduced benefits for paid-up benefits are available if you’ve paid your premiums for at least three years. In this case the policy will continue however on a less amount and the amount assured upon death will be reduced by the amount of premiums you have paid. There is no bonus accrual.Child Plan
Tax Benefits
We’ve seen that the child plan offered by life insurance companies helps to meet the financial needs of the child as well as the way it safeguards their financial security of the child should there be a sudden death or death of the parents.Child Plan
Did you know that, while the child plan safeguards your child’s future as well, it also gives you tax-free insurance benefits that reduce taxes for you too.
Let’s Now Look At What Benefits Are There To Having A Child’s Plan?
The benefits of Section 80C of the Income Tax Act 1961 – one of the advantages of having a child insurance plan is that you could get tax benefits up to 150,000 annually, according to Section 80C under the Income Tax Act 1961.
Therefore, you could save up to 45,000 rupees (assuming you fall in the tax bracket with the highest rate of 30 percent) per year by paying the premium for the insurance plan for children.
Section 10 (10D) of the Income Tax Act. The additional tax-free benefits of insurance are provided by the maturity proceeds that are that you receive from your nominee, your child, or nominee (in the event of your sudden demise).
The maturity proceeds are tax-free in accordance with the Section 10 (10D) of the Income Tax Act. Thus, the child insurance plans are one of the few savings products, whose profits are tax-free for the beneficiaries.Child Plan
Conclusion:
There are many goals we have in life, but protecting our children’s future is of paramount importance. We’ve talked about the ways that child insurance plans can assist in achieving these goals while you’re around, and ensure the safety of your children in the event there are any concerns regarding the day of your death.
The child’s policy continues in the event of death, without paying any premium. The policy pays the amount assured and other benefits once the policy has reached maturity of the plan or in a staggered fashion that you decide to choose.Child Plan
Therefore, there isn’t currently an available plan to be competitive with or even match the benefits offered by the child insurance policy so in the area of protecting the financial future and raising your child the right how it should be. These benefits along with other tax benefits for insurance make this the best option for parents to protect their children’s future.Child Plan
