When it comes to insurance policies, there are several that one can pick from. There are life insurance policies, retirement policies, investment policies, term policies, among many other categories. Every policy has its features, objectives, benefits to count. One such policy category is the children's policies.
Child insurance plans carry dual benefit for the child. First, they help generate a good corpus by investing the premiums in a fund that can either be endowment based or ULIP based. Second, they provide a life cover to the investing parent of which the child is the beneficiary. In case of the death of the policyholder, the insurance company waives off the future premiums and continues to invest in that fund on the policyholder's behalf. Moreover, it pays a lump sum or period amount for the maintenance of the child. Thus, these plans protect the interest of the child even when you are not with him/her.
Saving money on our own can be difficult as we cannot be that much disciplined unless we enter into a plan which necessitates us to deposit a particular amount or else it would lapse. Such routine is mandatory for systematic saving and investment. The returns from other funds or investments can get spent on other things. That is why it would be better if you have a dedicated child plan in your investment portfolio of which only your child would be the beneficiary.
As per financial experts, investing in such a plan should be started as early as possible to have more time for your money to grow. Ideally you should start comparing child insurance plans of various companies as soon as you know about the pregnancy. There are over a score of companies selling such plans and offer differentiated plans to stay competitive. Effective plan comparison and market research shall ascend you towards the most suitable plan from a reputed company.
For effective comparison you may try services of an insurance web aggregator. On a web aggregator website you can compare plans of scores of companies at a single web location and that too free of cost. Such effective comparison brings more confidence in your purchase and helps you take educated steps in selecting your plan type. Based on such comparison and analysis you can decide whether to go for an Endowment based child plan or a ULIP based child plan. Comparing premiums with your budget you can decide how much cover to go for.
If you are a parent then initiate the process now without wasting further time. Your smart actions now would earn you enormous gratitude from your kid in the future. Don't miss the opportunity to have that puffed up chest when your kid makes a lucrative career for himself. His hard work won't do that alone. He needs your financial support to climb that ladder.
There are various insurance policies out there, which are designed to help secure the future of the child with timely benefits.
But as there are several policies, finding the right one may be a bit of a hassle. One should always take help from the experts and the people who have insurance knowledge.
Here are some things to keep in mind:
Many plans tend to allow the insurer to add waiver benefits to the policy on an added charge. These premium waiver benefits are quite helpful in case of any mishap that may happen during the term of the policy. As per the waiver, the beneficiary will not have to pay the premium if anything happens to the insurer.What to Know About Child Insurance?
Life insurance plans are designed to make life easy for their beneficiaries. The life insurers study the problems that a person can face and device financial solutions to ease them. One of the big problems many people struggle with is to provide a sound future to their kids. Cost of higher education is really back breaking and is one of the biggest stress causing factors among parents. To ease this problem to a good extent life insurance companies have come up with a specialized plan called child insurance.
Child insurance plans carry dual benefit for the child. First, they help generate a good corpus by investing the premiums in a fund that can either be endowment based or ULIP based. Second, they provide a life cover to the investing parent of which the child is the beneficiary. In case of the death of the policyholder, the insurance company waives off the future premiums and continues to invest in that fund on the policyholder's behalf. Moreover, it pays a lump sum or period amount for the maintenance of the child. Thus, these plans protect the interest of the child even when you are not with him/her.
Saving money on our own can be difficult as we cannot be that much disciplined unless we enter into a plan which necessitates us to deposit a particular amount or else it would lapse. Such routine is mandatory for systematic saving and investment. The returns from other funds or investments can get spent on other things. That is why it would be better if you have a dedicated child plan in your investment portfolio of which only your child would be the beneficiary.
As per financial experts, investing in such a plan should be started as early as possible to have more time for your money to grow. Ideally you should start comparing child insurance plans of various companies as soon as you know about the pregnancy. There are over a score of companies selling such plans and offer differentiated plans to stay competitive. Effective plan comparison and market research shall ascend you towards the most suitable plan from a reputed company.
For effective comparison you may try services of an insurance web aggregator. On a web aggregator website you can compare plans of scores of companies at a single web location and that too free of cost. Such effective comparison brings more confidence in your purchase and helps you take educated steps in selecting your plan type. Based on such comparison and analysis you can decide whether to go for an Endowment based child plan or a ULIP based child plan. Comparing premiums with your budget you can decide how much cover to go for.
If you are a parent then initiate the process now without wasting further time. Your smart actions now would earn you enormous gratitude from your kid in the future. Don't miss the opportunity to have that puffed up chest when your kid makes a lucrative career for himself. His hard work won't do that alone. He needs your financial support to climb that ladder.
How to Pick the Right Insurance Policy for Children?
Everyone wants their kids to have a bright and financially safe future. For this, parents tend to save and work hard for years. As the cost of almost everything is constantly on the rise, it is important to have proper funds to pay college fees and even their marriage cost. This is the reason why one should think of investing in a good child insurance policy.There are various insurance policies out there, which are designed to help secure the future of the child with timely benefits.
But as there are several policies, finding the right one may be a bit of a hassle. One should always take help from the experts and the people who have insurance knowledge.
Here are some things to keep in mind:
Start early
Many tend to make the mistake of waiting for a certain period after their child arrives to plan their future. This can be a mistake as the cost of living and education is rising significantly over time. One should think of investing in an insurance policy as soon as the child arrives to get to arrange for the corpus by the time they turn 18 years old. This will give a longer period and thus will help in managing the premium amount and benefits accordingly.Age and requirements
The very thing that will decide which term to pick should be based on the child's age and future requirements. Some plans are meant as marriage plans, while others are term plans and education plans to support expensive tuitions. The buyer must chalk out the exact requirement of the child's future before picking any policy.Premium and term
Now, every policy will have a term. This again should be decided by taking into count the age of the child. Every policy does have a maturity age, during which the policy will come to an end. The longer the term, the longer one will have to pay the premium. But having longer-term usually comes with better benefits. Also, one should consider the premium that one can pay at regular intervals for the policy to sustain. Also, the premium payment modes should be decided beforehand.Waiver benefits
Insurance policies should always be bought based on future requirements, financing affordability, and investment appetite. One should also take into account the risk factors and the inflation factor while picking any insurance policy.