Raising a child not only involves emotional affection but also involves money. Whether you are grooming an infant or a school-going kid, you must meet the expenses at different stages of your child's life. Every parent wants their children to have a perfect life. However, the 'perfect life' demands a secure plan. There are many challenges that you will have to face to become a successful parent.Read more
That is when the idea of a secure plan arrives so that you can provide a perfect life to your child. And the only possible way for this is to prepare well-informed financial planning.
For your child's bright career, secure financial planning can do great wonders. Higher education is expensive and given the current costs, the requirement of a secure financial plan is recommended to every parent.
With a very basic understanding, you can say that a child plan is a blend of insurance and an investment that can help your child with funds to meet future needs at different phases of life.
In today's time, you can buy several types of child insurance plans to safeguard your child's future against any life's uncertainty. However, not many people are motivated in India to buy a child insurance plan. The reason could be that it is still a new concept for so many individuals. But time and again as many people came to know about the child insurance plan they have bought it right after finalizing their requirements.
Buying a child insurance plan comes with several benefits. Also, it is one of the few plans which provides maturity benefit.
The best part is, you can compare child insurance plan not only with other insurance plans but also with other investment tools like fixed deposits and mutual funds. You will see, with a child insurance plan you are getting higher returns as compared to other investment tools.
Child insurance plans are the best way to receive higher interest rates on the investment. At the time of maturity, you will get an option of flexible pay, re-investment in equity, or repayment of the debt, etc. If you have the basic know-how of the policy, you can have a sound financial future for yourself and your entire family.
Child plans offer you the dual role of financial security in terms of both investment tools and insurance products. Let's understand this in a bit detail:
If you are not thinking of buying a child insurance plan at present time. You must be ignoring one simple factor and that is 'inflation'. The average inflation rate will make the education cost along with other necessary expenses will make harder for you to bear after 8-10 years.
The Industry experts suggest that it is better to buy a child insurance plan when your child is at least 5 years old. That way, you will be able to meet future expenses with ease. Depending upon the tenure of your policy you can make enough investment to support your child in financing the start-up, higher education, marriage, etc.
Many child insurance plans offer smart maturity benefits by the time your child is 18 years old. This means the early you can start, the sufficient sum assured you will receive at the time of maturity.
With the arrival of private companies, the life insurance industry in India has seen remarkable growth over the years. Every company offers different benefits along with the child insurance plans however, you will enjoy the basic structure with added riders with almost any insurance company. It is advisable for you to do proper research on child insurance plans before investing your money in the same. You can compare plans online using the Policy Bazaar portal. Comparison around the right information will help you make an informed decision.