What is the best child plan that would secure your loved one’s future? That is the question that reigns high in the minds of parents who are anxious to get the best protection for their children. You may want to compare the child plan, contrast the features, work out the permutations and combinations and try to get the most out of your investment in a child policy. However, while most of the child plans offer benefits that are commensurate with market rates offered by the competitors, it may be in your own best financial interest to go for customized child plans, rather than opt for something off the shelves.What is a customized child plan?
When you go in for a customized child plan, you would no longer have to compromise on the rate of interest that you would otherwise be able to earn on a regular investment of your assets. When you customize an online child plan, you could determine the returns that you would want to earn to match those you could command through other avenues of investment. It may so happen that what seems to be the best child plan may not yield the best dividends when you consider the long Term
A customized child plan, on the other hand, could be tailor-made to suit your own unique requirements and circumstances, where you could enhance your earning potential, without compromising on the insurance part of the equation. When you compare child plan, which would give you a return of 6% to 8% at best, customized child plans could, with planning and careful consideration, get you returns that are at par with the very best investment avenues in the market. You could do away with constraints such as premature withdrawal charges or switching charges associated with a move from one option to the other based on market conditions. If you plan on the long term, online child plan that lasts for around 20 years in duration could get you dividends much more than what you could get from any other traditional form of child policy.What are the different types of child plan?
In a broad sense, child insurance is of two types – traditional plans and the ones that are unit-linked, i.e. ULIPs. Further, there are a host of Riders
that you could add on to your child Policy
to customize it to your needs.
Traditional child policy is the one that is offered by insurance firms and which are very similar in nature to endowment plans. An online child plan of this nature would have an investment and an insurance component, which gives you a clear idea of future and planned payouts in advance.
Unit-linked child plan, on the other hand, gives you the benefits of insurance cover coupled with investments that are equipped with high rates of returns. While they may feature an initial lock-in period, their withdrawal options tend to be flexible, while their rates of returns on the long run also tend to be reasonable. When you compare child plan, you would find that the unit-linked child policy tends to fluctuate in value with time.
Riders in child plan: Online child plans gives you the freedom to choose while ensuring you could also compare child plan
The best child plan also has provisions for riders, such as Waiver
rider, which also come into plan in the event of death, disability, or dismemberment of the life insured.