help create a corpus for crucial stages in the child’s life
We all want the best for our children. Child insurance plans help us secure our kids’ future in the most unstable times. A good child plan will help fund your child’s education and open new doors of opportunities for him/her. A child health plan is crucial to cover any medical costs and risks your child may have to face. So a good child plan will cover your children in case of all unforeseen eventualities to ensure a stable life for them.
The rising costs associated with education and health is one of the main reasons for the growing significance of child plans. Child insurance is a must to help you fund these expensive facets of your child’s life. With Inflation rates touching the ceiling, one can very well imagine the cost of education years from now when your children are all grown up and ready for further studies. One needs to find the best child plan to take care of such needs.
Most child policies are designed to provide certain sum of money to the child at pre-fixed intervals. These are timed to coincide with major life events which will require high amounts of investment, such as higher education or wedding. Several child plans offer the option to withdraw certain proportion of the sum Assured before maturity. On the other hand, there are child policies which are fixed and do not offer this choice. You may also be able to get Premium Waiver on the child insurance in case of death of the earning parent. Make sure that such a clause is available on your child policy to prevent unnecessary financial burden later.
A Unit Linked Insurance Plan is a great option if your child policy is to last over 10-15 years. This is because ULIP is flexible in terms of where the premiums are invested. By investing these in equity, your child policy can turn out to be very effective in the long run. Equity is the best way to beat inflation in the long run and hence, makes for the best child plan.
On the other hand, a traditional child policy offers less flexibility in terms of investment but is also lower on risk.These are the best child plans if you wish to keep Risk to the minimum and ensure a definite lump sum amount for your child in the end. But such a child insurance is bound to offer lesser returns than a ULIP. So if you are looking to save up a high sum for your child, for studying abroad or a business startup, ULIP will be the best child plan.
If you invest in a ULIP, choosing the right equity investments is crucial. Make sure you plan your investments well to ensure the best child plan for your kid.
What are your expectations from the child insurance? How long is the time period for the child policy? What is the final sum you want out of the child plan? These are some of the questions you need to answer before choosing the best child plan.
If you are looking for a child health plan, make sure you get one which covers your child’s specific circumstances. Does the child have ongoing illnesses? Is he/she at risk for a major disease which will require high finances?
Getting the best child plan for your kid is not rocket science. Just make sure you have your objectives in mind and research well to find the best child plan to fit your goals. Your child needs you to make these decisions today so he can have a secure future tomorrow. So find the most ideal child insurance for your kids today!