Tag Archive | "Child Insurance"

An Overview of Best Child Insurance Policy in India

  • Easypolicy
  • 19 Oct 2016

Child insurance plans are one of the best kinds of insurance policies available these days. These plans help you to secure the futures of the most precious and loved people in your life – your children. A child plan not only builds up a healthy corpus for the child, it also insures your life and provides cover to your kids if you die prematurely. The plan also becomes a lifelong assistant and provides you with monetary aid when you need it the most for your children. There indeed are many advantages of buying a child plan. Today, in India, there are many good child plans that are available. Listed below are the five best child plans and their advantages.
The best child insurance plans in India

1.    LIC Child Carrier Plan – Life Insurance Corporation (LIC) is the Premium insurance provider in India. Every LIC plan carries a lot of weight and the LIC Child Carrier Plan is no different. This plan is loaded with features such as a high sum Assured of up to ? 1 crore, premium Waiver benefit and periodic payouts.

2.    LIC New Children’s Money Back Policy – Another good product from LIC, the New Children’s Money Back Policy is a very popular child plan. Apart from providing the best features, the plan also participates in the company’s profits. As a policyholder, you can use this plan as collateral to take a loan as well.

3.    Kotak Headstart Child Assure – This child plan is popular mainly because it offers a very high policy period of up to 25 years. The plan also has the unique ‘triple benefit’ feature under which the beneficiary, after the policyholder’s death, will receive the basic sum assured, the premium waiver advantage and will also continue to stay protected till the policy matures.

4.    BSLI Vision Star Plan – The Vision Star Plan from Birla Sun Life Insurance is the next plan that deserves a mention. This is a basic, no-nonsense child plan that pays out a part of the Sum Assured at specific time intervals.

5.    PNB Metlife Smart Child – This is a very good plan that is available at a reasonable price. The premiums start from just ? 18,000 per annum. This is a plan that offers good value for your money.
Advantages

There are many who argue that child plans are too expensive. However, when we look at the advantages they offer, the expenses are justified. Some of the advantages include:

•    Good savings tool – Swapnil Pawar from Karvy Private Wealth, while speaking about an average Indian investor, says, “If he is given a choice, the investor loses discipline and stops investing.” A child plan enforces discipline and compels the parent to save for the child’s future and build up a healthy corpus.
•    Timely financial assistance – Like mentioned above, a child plan pays out at specific intervals which you can decide beforehand. A child’s needs vary at different stages of his life. The cost of his school admission is lesser than the cost of his foreign university admission. A child plan allows you to plan ahead and then provides you some solid financial assistance when you need it the most.
•    Protects you, protects your child – Last but not the least, a child plan protects you and protects your child. It protects you by giving you all the financial help you need to provide the best for your child. It protects your child by insurance your life and ensuring help in your absence. The dual protection feature is one of the biggest advantages of a child plan.

Conclusion

So as we can see from the points mentioned above, child insurance plans are practical financial tools that every parent with a small child must invest in. There are many options and you can choose a plan based on your own Risk appetite. Including a child plan in your insurance portfolio is not just wise, it is almost mandatory. So if you haven’t considered getting a child plan yet, you must do so right away!


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Why You Need Child Insurance Coverage?

  • Easypolicy
  • 21 Sep 2016

Your child would grow up sooner than you think!! Time flies past us so swiftly before we even realize. Being a parent you want your child to get all the financial aid needed to establish a great career and a happy life ahead. I was reading a bestseller book named ‘Rich Dad Poor Dad’ by famous author Robert T. Kiyosaki, the book states that although formal education is not ‘the be all and end all’ of your child’s financial future, it is still very important. The book emphasizes on its famous CASHFLOW quadrant which categorizes people in four different types, namely Employee Quadrant (E), Self Employed Quadrant (S), Business Owner Quadrant (B) and lastly, Investor Quadrant (I).

To be rich one has to be in the business quadrant or investment quadrant. To be a big business owner you need loads of investment and there is high Risk especially if you lack experience, for being an investor again you need lots of money, moreover your investments can go bad and you may suffer losses. A sure way to get financial security is to go in the E or S quadrant wherein you would either be an employee or a professional like Doctor, lawyer, CA etc. To be successful in the E and S quadrant your academic achievements and soundness would give you a competitive edge. And after being successful in these quadrants one can gradually move towards the B and I quadrants. Thus, good education is highly important to take up a high paying and satisfying employment. If you start with a good job you get healthy experience and can save more from the high salary. Then if you want to go in business you can use that experience and savings to invest in the business.

But higher education is very costly. If you are a parent and you belong to either of the first two quadrants, chances are that you won’t have that much spare amount that you can spend 20-30 lacs that easily. The amount increases multifold if your child wants to study abroad and keeping the Inflation angle in mind, the cost is only going to be higher.

Quoting from a book written by celebrated American investment and finance expert, Brian Tracy, “one should always name one’s money. In other words, one should mark the destination of every penny so that you can check your extravagant expenditure and save money for a desired cause. Pre-planned channelization of money promotes systematic investment. Similarly, you should have dedicated savings in the name of your child, so that when he grows up he has enough money with him to pursue desired studies for which he is capable or for marriage.

The best bet is to invest in a child insurance plan. These plans are specialized child protection plans that help the child in two ways or two scenarios. First scenario, they provide a fund in which you keep investing money in the form of premiums and your money grows over a period of time called accumulation period. At the time of Maturity of the Policy your child gets the money. Second scenario, life is very unpredictable, you would do anything for your child while you are alive but what if something happens to you? Here the insurance aspect of the child plan takes prominence. If you die during the currency of the policy, the insurance company does not terminate the policy rather invests in the fund on your behalf and also pays a sum called Death Benefit to the guardian of the child for the maintenance of the latter. Thus, in a single plan you get the benefit of insurance and investment.

The motto of these plans is ‘your death shall never be a hindrance in your child’s success path’.  If your child is bright he should get his share of opportunities to explore his potential. You have trained him to be successful, don’t let a little lack in your planning to spoil that common vision you and your child share. Compare child insurance plans to have the soundest product at best prices and take the first step towards filling your child’s future with opportunities.

The sooner you start the wiser. Delay would cost you more in the form of rising inflation and lesser time to accumulate money. Even if your child is an infant, don’t think that a lot of time is left with you. Experts say that you should start studying child plans as soon as you know that you are expecting a child. Start at your earliest to avoid burden later.


Why Should You Prefer Having a Child Insurance Policy?

  • Easypolicy
  • 25 Jul 2016

The other day I was reading a book written by a famous American investment and finance expert, he at numerous times highlighted the importance of ‘naming’ your money. Naming of money means you should allot a destination to every penny you make and spend that money only for that purpose. Like, you should decide a specific amount you are going to spend on groceries in a month and restricting your expenditure on groceries to that amount. Similarly, for every commodity and service you should name your money.

This practice makes you know how much money you are spending and how much you can save. You should have some saving goals. Similarly, we should have clear objectives from our investments. If you are investing money you should know why you are investing in that particular scheme, what returns can be expected from it, the Risk it carries, the gestation period and liquidity of the investment and also the purpose you are looking to be fulfilled from that investment.

The bottom line is, there are only two ways you can earn money. First, by working for it and second, when your assets work for you. Keeping idle money in your pocket would make you heavily dependent on your savings and as per the concept of ‘time value of value’ you would be depreciating the value of your money by keeping it idle.

Among the many reasons for people to invest a major one is to secure the lives of their children. Specially, in Indian culture the parents are expected to take full responsibility of their children up to an extended age. Generally, Indian children don’t contribute to fund their studies or marriage. Thus, whole sole responsibility is on the parents. Thus, your investments should make you end up with enough resources to fund the higher studies and marriage of your children.

That is a big reason that Indian families prefer having child insurance plans in their investment kitty. Child insurance plans are specialized financial products designed to secure the future of your child. It helps in building a good corpus by the time your child attains the age of higher education. These plans even protect the child against the financial consequences of your unfortunate death during the currency of the policy.

Other investment schemes cease once the investor dies but it is not the case with child insurance plans. In case of death of the policyholder the Policy continues and no future Premium installment is to be paid by the child or its caretaker. Moreover, the company pays a pre specified death benefit amount for the upkeep and maintenance of the child. Thus, benefits of both life insurance and investment are availed in a single plan.

Keeping in mind the soaring education costs and general inflation a dedicated child insurance plan is the need of the hour. All responsible parents understand the value of good education and the fierce competition around. As much as the hard work of your child your smart financial planning is equally, if not more, is required to build a successful career for your child.

So, if the bright future of your child is one of the objectives behind your investments, you should consider investing in child insurance plans. One important tip is compare child plans of various companies to cut the best deal.

The sooner you start the better. As with various other types of insurance products, the premium keeps increasing the later you invest. Start while your child is still little to accumulate the required corpus. Time flies faster than we realize. The earlier you enter such plan the larger corpus you build. Keeping the factor of Inflation in mind, you understand the importance of a bigger corpus. Thus, time is of huge essence.

You do your bit by planning for the finances and let your child resonate his gratitude in his grades and efforts. Such planning not only provides financial soundness but strengthens relations when your children honor your endeavor for them.  They acknowledge your sacrifice and learn how to shoulder responsibilities.

Such plans are very essential for the overall upliftment of the society. The more educated the society is the better it can lead the world towards development and harmony. It is very essential for children to get good opportunities to rise and achieve their dreams. Invest carefully and make your children feel proud of you.