A child is definitely a bundle of joy in every family. Right from the time the news of pregnancy hits, the life of a parents change completely. Being a responsible parent, you’ll be willing to give your child a secure and stress-free future. You give your best to offer the best possible care and comfort to your child, from education to fulfilling their dreams, you leave no stone unturned.
However, despite trying hard to give all the care and comfort to the child, sometimes it becomes challenging to meet their needs and demands due to rising inflation rate. Hence, it becomes necessary to get a child savings plan to give a financially secured future to your kid. The plan is designed to provide an avenue of investment for a child’s better future and also guarantees the promised corpus in case a parent or guardian dies during the term.
Child plan is a combination of both an insurance and investment serving mainly two purposes – financially secured future and funding for higher education and wedding expenses. It is like a double-edge sword that serves dual benefits to protect your child’s future from any sort of uncertainty.
Today, affording a quality education has become quite a challenge, especially for lower and middle class families. The cost of education and other expenses are rising with each passing day. So, you can fairly imagine a scenario after 10 or 15 years when the inflation rate will be much higher.
As simple regular savings might not suffice to meet the rising upbringing expenses, children policy becomes a necessary tool to let your kid to shine in the competitive environment. Also, it is not necessary to have a hefty monthly income to buy a plan; one can choose a plan according to their financial status, child’s educational needs, and considering other such factors.
Investment and insurance – An insurance policy works as both investment and insurance plan to secure a child’s future. A plan unites the benefits of an insurance and investment assuring to deliver maximum financial assistance.
Consistent savings – Child plan is methodically designed to save for the kid’s future. Instead of having a choice to put a portion of your income into savings, you are forced to put the money regularly into the plan. Also, if you fail to pay the premium, the policy would lapse and this fear keeps you encouraged to continue the plan until maturity. At the end, your child would have a strong financial background and this would make you feel a proud parent.
Building a corpus – Based on one’s appetite for risk, you have got the freedom to choose between traditional or a unit linked child plan. Considering advantages and disadvantages linked to each plan, you will be able to build a strong financial corpus that will come handy for your child at times of emergency.
Financial assistance – The primary focus of any policy plan is to provide financial assistance to secure a child’s future. The funds accumulated on maturity can be used to meet higher education and/or wedding expenses of the insured.
Medical emergency – Despite following a healthy diet chart and exercise regime, health-related emergency can come into frame uninvited. Hence, the amount from the policy can be withdrawn to meet the medical emergency. This reduces the financial burden caused due to sudden serious health condition.
Collateral for education loans – Academic competition is soaring at fast pace and thus, giving a quality education to their kids has become a sole goal for every responsible parent. But, due to constantly rising educational costs, it becomes a little challenging. Thus, education loan remains the last option to look for and to avail the loan, a child policy plan can be treated as collateral against the loan. A policy plan is highly beneficial for securing a loan for pursuing higher education at prestigious institute.
It is to be noted that a comprehensive and judiciously done planning holds its own advantages and financial planning for your child remains no different. So, here are quick tips to get the best child policy plan in India:
Evaluate the needs – First and foremost evaluate the needs. Parenting is a boundless joy, of course, but this comes at a cost of certain responsibilities as well. So, before you buy a policy plan, it is essential to analyze the needs and don’t get the plan under the influence of others. Everyone has different needs. Even your children might have different career goals; therefore analyze the needs, evaluate the sum assured amount, compare and get the best deal to suits best to your requirements.
Start early – As a responsible parent, you start caring for a child even before its birth. So, why to delay in getting a policy plan? There is no perfect time to get the plan, hence it would be great to start as early as possible. Starting early makes you eligible to enjoy extended benefits because most plans offer maturity benefits and pay-outs at crucial stages of child’s life post turning 18 years of age. In order to build a greater corpus and reap higher returns, it is suggested to invest in a child policy early.
Research the market – Considering the rising inflation rate and parent’s demand, several companies has introduced their child plans claiming to offer the best-in-class benefits and coverage. Now, as a parent, it is your responsibility to research the market and choose the best child policy in India to secure your child’s future from all aspects of life. Compare the plans and investigate company’s background in order to make the right choice.
Negotiate the premiums – While you choose the plan, don’t forget to negotiate for the best premium rates and maturity benefits. Also, understand waiver of premium feature where the company guarantees to waive off the premium, in case if, anything unfortunate happens to the parent.
• LIC Child Plan
• Sukanya Samriddhi Yojana
• HDFC SL Youngstar Super Premium
• Reliance Child Plan
• Aviva Young Scholar Advantage Plan
• Bal Jeevan Bima – PLI
• Bajaj Allianz Young Assurance Plan
• Future Generali Education Plan