Categorized | Child Insurance

how to identify a child insurance plan?

Secure your child's future by investing in child insurance plans. Expenses are many when raising a child and if you could invest little amounts every year that matures when the child attains a certain age, the money would be of great help. There are many needs for a child including higher studies which could be served well by investing in child insurance policies. Planning and investing at the right time is the only thing a parent needs to do to provide a worry free future for his child. Certain child policies have flexibilities that waive the Premium in case of parental death but still keep the Policy active.

WHEN TO INVEST IN CHILD INSURANCE?

Investing in child policies is better when started early; sometimes as soon as the child is born. Planning at an early stage will help you in many ways as the Maturity benefit will be large and the premiums you need to pay will be less. And when the child is in need of financial help the most, the investment attains maturity and the financial returns will be huge enough to meet the requirements. There are also child plans for children above 12 years which will attain maturity when they are independent to manage their own finances. However, early investment offers more options and benefits.

WHY TO BUY CHILD INSURANCE?

The expenses concerning your child are not uniform and some are unaffordable. A child policy offers several benefits apart from financing your child's needs. Anticipating the expenses involved, planning, comparing child plan and identifying the best child plan will secure your child's future. Any child policy you choose will cover basic requirements like health and studies and provides financial assistance whenever required. The best thing is, all these will happen even if you aren't around to look after it.

Most of the Child Insurance Plans are broadly of 2 types:
 
•Traditional Plans: In this plan, the amount of payout is guaranteed and the premiums are not subject to any investments.
•ULIPs: In this plan, a part of the amount paid as premiums every year is invested in financial instruments which appreciate greatly over a long period of time.

WHAT TO LOOK FOR IN A CHILD FUTURE PLAN?

Child insurance serves better when you plan and choose wisely. Compare child plans and choose the best plan that suits your child's interests and risks.

•It must provide enough amount for his/her education in a career of his/ her choice.
•It must cater to your child’s extra-curricular activities and wedding needs.
•Identify a plan which helps you pay premium the way you can, either as a single lump sum or regular installments.
•Choose a plan that gives you benefits at once or partly during the key milestones of your child such that the maturity amount must come at the right time and year for your child.
•You must ensure that the child policy you choose must have the provision to pay for the future premiums in the unfortunate event of your death during the Term of the policy. The Future premiums would be paid by the insurance company till the time of maturity of the policy.
•Decide the plan amount considering the fact that Inflation will increase your requirements in future.
•There are child plans that also offer tax benefits.

COMPARE PLANS

Child plans come in all types and it is important to study the details of the policy before choosing. The claims vary with each policy and the conditions and costs too differ greatly. Any insurance consultant might be of help for you to overcome the trouble of choosing the best child plan for your child.

THINGS TO REMEMBER

Parents need to view all plans in detail to choose the best plan. Parents having children older than twelve cannot invest in certain plans that offer less withdrawals and larger maturity period. And parents of twins can choose plans that enable nominating two children under one plan. The selection criteria for the best child plan are vast and therefore choosing an ideal plan customized to meet your requirements is important.