Child insurance plans are the best option to secure your child?s future
Posted by ankita on December 13th, 2016
For all parents, planning for the future of children is one of the most important financial goals. It primarily focuses on children education, their career goals, and extra-curricular activities. Regardless of their current income levels, parents often aspire to give their children the very best. But, due to the rising inflation costs, advanced lifestyle behavior and higher education costs, choosing a sound child plan becomes mandatory for parents.
Funding for your child’s secure future is the most important part. It could be the best asset parents can give to their child/children.
With the costs of higher education shooting up, fixed income return options are unlikely to help you save for your child’s future. You need to aim for equity returns.
People usually save either for retirement or with a specific goal in mind. But the most important goals is your child’s future like education or marriage, while other goals are kept on a hold. This article focuses on the child’s future goals. Planning a child’s education could be a challenge, especially when you don’t even know which stream she or he would pursue.
Child plans offered by life insurance companies are one of the most preferred forms of investment for child’s financial security. The two important aspects while buying a plan for your children would be cover protection and the best investment returns from the market.
Let’s understand child-insurance plan offered by insurance companies:
Child Insurance plans are insurance-cum-investment plans offered by insurance companies. In these plans, the parent starts investing right from the time a child is born. They can withdraw the savings once the child reaches adulthood or in exceptional cases, if the parent were to meet with an unfortunate event child insurance plan is able to provide a life cover for the financial needs of your children and lump-sum money is paid out to the child as well. Child-oriented life insurances offer a waiver of premium option under which future premiums are paid by the insurer if the parent dies or contracts a critical illness.
Many times parents delay the planning for child security may be due to lack of sufficient funds or some other financial responsibilities. But the truth is the more you delay the child plan, lesser would be the finances arranged for your child safety in future. Therefore, industry experts suggest parents start early and follow a disciplined approach to saving for these child insurance plans.
While there are some ways to buy child plans like calling up customer service, visiting branch or handing over the job to an insurance agent, the best way would be purchasing it online. Buying child insurance plan online proves to be the most convenient and hassle-free method in the modern day times. Besides, it gives an edge over other financial products, owing to a wide range of benefits. Child plans allows parents to start investing early and motivates for more streamlined efforts towards savings for their children.
They are affordable and based on individual risk appetite, income sources and child’s future needs. Customers can choose between unit-linked and traditional insurance plans. While a unit linked child insurance policy allows investment in equity and debt markets, the traditional child insurance offers guaranteed maturity benefits and invest funds mainly in self-instruments and risk-free government securities. Low-risk appetite people can opt for traditional policies and customers ready to take the risk for their children can take a look at the equity markets.
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About the Authorankita
Joined: July 16th, 2016
Articles Posted: 67
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