Tag Archive | "Investment Insurance"

Forget Vacations! This Is What Your Kids Really Want!

  • Easypolicy
  • 17 Mar 2017

These holidays, where are you planning to take your kids?

An international holiday to Mauritius, or Disney Land, or Bali, or somewhere more expensive?

Well, holidays are good and spending money on them is ok too! But, wouldn't it be great if you spent that same amount of money, or maybe even lesser and bought them the safety and security for life?

Yes, we are talking about lifelong financial planning for your kids' future, through methodical and sensible Investment Plans! Investing money for life security is way better than spending it for few days pleasure!

Therefore, more than any national or international holiday this is what they need and why:

Investment Plans

  • A sound investment plan helps you to grow your wealth and build a corpus of funds, to come in handy for your kids anytime at the time of need.
  • They provide absolute life protection to you and your kids as the main component of major investment plans remains life insurance.
  • With healthy returns at the time of maturity, they are the fool-proof planning for long-term goals of your kids' life.
  • The biggest advantage of investment plans lies in the multiple avenues they offer for earning some extra income in the form of bonuses (guaranteed & non-guaranteed), dividends, interests, and much more.
  • There is also an option to earn capital gains from sale of equities and mutual funds. Thus, generating a side-fund for your kids, as and when they want.
  • These plans bring with them an array of tax benefits. While the premiums paid towards life insurance policies are covered under Section 80C of Income Tax Act, the maturity/death proceeds are also tax-free under Section 10(D). Thus, for all the funds your kids can avail, there is never a tax liability for the same.

Term Insurance Plan

  • If you’re the sole bread-winner of the family, a term insurance plan ensures that your kid’s financial independence is retained even if you’re not around.
  • A Term plan offers massive sum Assured at extremely lower premiums that can come handy for all your kids' educational and life planning needs.
  • If you have certain loans to pay off like car loan, home loan etc. and unfortunately you pass away before they are paid off, your kids are prepared to pay-off with the financial planning you did for them through a sensible Term Insurance plan.
  • A term insurance plan is the best insurance you can buy at extremely economical premiums that easily fit into your pockets without making your kids compromise on things that matter.

Child Plans

  • With a child plan in place, the cost of basic as well as higher education can be met irrespective of the fact whether the parent is alive or not.
  • Marriage is one of the most important milestones in a child’s life and requires substantial amount of financial support. A child plan helps to build a corpus at an early age, hence, such expenses are not a threat.
  • In the unfortunate scenario of a Insured parent’s death the child plan offers a feature called Waiver of Premium (WOP) where the child is given the benefits of insurance and investment without having to pay any future premiums after the death of the insured (parent).
  • With prudent financial planning through a child plan, you can strategically mark important milestones where your child gets financial support to meet different needs at different stages of his life. A child plan ensures this pay-out both in your presence as well as absence.

All kinds of insurance and investment plans are debt, equity and hybrid based. You must know your Risk appetite and invest accordingly, so that your kids do not have to suffer. It is advisable to prioritise your kids' future and based on their life-long needs, invest in a plan that offers maximum returns in your presence or absence.

Give the best gift to your kids' which is a life saver throughout! Vacations can wait!

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Start Planning For a Financially Safe Future of Your Child

  • Easypolicy
  • 28 Nov 2014

A good education is a foundation for a strong career. Parents aspire to provide best education to their child but we all know how expensive education is getting with every passing year. If we look at the last 10 years, education costs have grown at a much faster pace than consumer inflation.

Whether or not their limited savings would be enough to meet the growing expenses is the common anxiety that most breadwinners of the family face. Uncertainties of life and health aggravate further aggravates the anxiety that parents hold about their child’s future.

Much of these worries can be allayed if things are planned early. Insurance companies offer child plans which guarantee a financially safe future for the child. Buying a child plan is an effective way to calm parent’s anxieties and safeguard the child’s future.

You would be wondering on how a child plan can help. There are two benefits of a child plan which assure that the child’s financial needs are met in all circumstances.

1. Death Benefit along with Premium Waiver Rider

In case a parent meets with an early death during the Policy tenure, the family/ child receives a death benefit and the policy remains in force. Not just that, the insurance company takes up the responsibility for the payment of future insurance premium on the policy.

2. Maturity Benefit

The maturity benefit is a guaranteed sum Assured that the insurance company pays upon the completion of the policy tenure. The maturity benefit can be either received as a single payment upon maturity or as periodic payments at predetermined milestones. These predetermined milestones are essentially those points in time when you expect your child to enter college, pursue further education or get married. These periodic payments will help your child get the necessary funding to meet the expenses related to these milestones.

Remember that just buying a child plan is not going to serve the purpose. It is equally important that you buy a child plan quite early. In fact, the ideal gift on your child’s first birthday would be a child plan which would go a long way in shaping up a bright and secure future for your child. 

The key benefit of buying early being that the annual premium burden becomes much more affordable. So you can look to save a corpus for your child that would be big enough to comfortably take care of his needs even in your absence.

Customize Your Child Plan!

  • Easypolicy
  • 25 Nov 2014

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.