A host of child plans are available today. Buying a child plan guided by advertisements or peer pressure or simply because it is cheap may not be wise. Before you sign the dotted line you ought to assess whether the plan actually addresses your needs. If the child plan you intend to buy is not customized to your needs it is most likely to either under-serve or over-serve you and therefore may not be the right choice.
It is important to realize that as every individual is unique, it is impossible to get a Standard Plan that addresses everybody’s need equally well. Customizations are required for variety of reasons.
Risk appetite changes with time
Every individual has a different Risk appetite, or different expectations with regard to the return. It is important that you choose a child plan that allows you to adjust your exposure in debt or equity based on your risk appetite. This means, if you have a higher risk appetite you can opt for greater exposure in equity as against debt.
There are child plans that even provide you with a self management option. Using this option you can choose from a suite of different investment funds that invests anything ranging from 100% debt to 100% equity. What’s more, such plans give you the facility to alter the allocation of funds between debt and equity as per you risk appetite at a point in time.
Security needs are different
Each one of us has a different standard of living and diverse expectations with regard to quality of life and education. It is important that you buy a plan that offers you the flexibility to choose a sum Assured that you feel is adequate for the needs of your child and family.
There are child plans that allow you to buy an enhanced Sum Assured in addition to the basic sum assured promised for the chosen premium. You just have to shell out a nominal amount for buying this enhanced security that you desire for your child.
You can further enhance the protection for your child by choosing from a host of riders. The various Riders
available with child plan
include accidental death and disability rider, Critical Illness
rider and hospital care rider. The annual insurance Premium
obviously would be higher if you opt for these riders, but if you think the additional protection is worth the money, better go for it.