help create a corpus for crucial stages in the child’s life
The last thing that any parent would compromise on is the future of their child. Buying a child plan is a great way to feel Assured that child’s financial needs would be met irrespective of whether as a parent you will be there or not on this planet to ensure the same.
If you are looking to get the most out of your investment in a child plan it is recommended that you start early. Buy a child plan early on so that you can save on insurance Premium and can have a longer investment horizon. The longer investment horizon helps in two ways:
The annual insurance premiums you pay towards a child plan when you invest early are invested for a longer duration. As a result, with the power of compounding the resultant savings you generate are much larger than if you invest over a relatively smaller horizon.
The other benefit of a longer investment horizon is that you can choose a child plan that allows you exposure to more attractive and aggressive investment options like equity. When compared to debt, equity promises much higher returns in the longer term.
The amount of Death Benefit or sum assured that you can look to buy for your child can be much higher if you start early as the annual premium tend to be much lower.