Global Courant
The life insurance industry is booming. With wide marketing from private players, LIC and insistence from the government, people from all classes are realizing the importance of taking life insurance. Short-term, long-term, pension and child insurance are on the rise. People invest in these plans, initiated by self-awareness or by the glamor of insurance advertising.
After the flight of retirement plans (retirement plan sales have skyrocketed in recent years), the next big thing most insurance companies are focusing on is the child insurance plan. Even Life Insurance Corporation of India, majority of which focused on cash back and installment plans, is now moving towards child plans.
Child insurance plans started from the child’s age 0, so it’s easy for most parents to plan for their “upcoming” child’s future. Children’s plans – cut only for children are intended to cover education, higher education and marriage needs. Sum insured or guaranteed returns are the main features of the child plan. The main attraction that insurance companies like ICICI Prudential and HDFC insurance companies are tapping into is the Maturity Benefit Plan, where the family does not have to pay further in the event of the death of the insured parent during the term of the policy and the policy continues with the insured amount and the bonuses declared.
By tapping into other benefits, which are in fact beneficial, insurance companies are doing their best. Child insurance have some of the basic attractions such as checks when the child reaches a certain class/class or age and a beneficiary concept where the beneficiary (in this case the child) is the only person receiving the benefit. To add to the icing is the tax break. Parent(s) taking out the child policy are eligible for tax relief under section 80C and section 10(10D) of the Income Tax Act, 1961.
– Under Section 80C: You can save tax each year if premiums are up to Rs. 1,000,000 may be deducted from your taxable income.
– Pursuant to Section 10 (10D), the benefits you receive under this policy are fully tax free, subject to the exclusions.
Securing your child’s future is one of the greatest reliefs for any parent. With so many child insurance and life insurance companies out there, this shouldn’t be a dream too far…
Child Insurance – the next big goal
World News,Next Big Thing in Public Knowledg
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