The joys of becoming a parent are boundless. Every parent wants their children to be the best and have the best of everything. However, with rising levels of inflation, the cost of child education, medical expenses, marriage expenses, and the overall standard of living is highly affected. To prepare yourself from any kind of untoward eventuality, it is strongly recommended to do timely investment for child’s future from today.
There are a variety of investment products available in the market, arguably, the best among them are child insurance plans. Many of you may believe that a life insurance plan for yourself would be adequate to meet the family and child’s needs in your absence. However, seldom do we think about who will take care of our child’s needs when he grows up.
A child insurance plan, offered by insurers such as MaxLife, serves the dual purpose of insurance and investment. It fulfils two key requirements:
- Secure your child’s future financially
- Provides financial aid in various stages of life such as higher studies, going abroad, starting a business, and entering the marital phase.
With numerous child plans available in the market, it can become difficult to choose a perfect plan that best meets your child’s needs. Following are a few tips that will help you make an informed decision of choosing the right insurance plan for your child.
Start investing for the future of your child from today itself. Majority of the plans in the market offer maturity benefits and pay-outs at important life stages as soon as the child turns 18. Thus, to build a greater corpus and reap higher returns, it is recommended to start investing early.
Take into account the changing economic factors:
As a parent, understand the basic fact that all funds saved for children would be utilised only in future. Expenses in future will only rise due to inflation and several other factors. You need to take into account these factors before choosing a suitable sum assured amount.
Pay attention to the fine print:
Different plans are designed differently, each with its own set of unique features. Read the policy documents of the plans to understand the features in detail; only then will you be able to choose an appropriate plan that best suits your child’s needs.
Look for a Premium Waiver option:
In case the applicant passes away during the tenure of the child plan, certain insurers offer the benefit of premium waiver or self-funding of premium, thereby making it easy to continue the policy without burdening the family member for premium payment. Thus, the policy will not get lapsed and the child will receive complete maturity benefit.
Provision of Partial Withdrawals:
Medical emergencies faced by your child can force you to seek financial help. Provision of partial withdrawals will give you the flexibility of meeting these unplanned expenses without disturbing the regular expenses and income.
Choice to Choose Funds:
Most of the child plans comprise investment instruments linked with capital markets. Having underlying funds will give you the benefit of seeking better returns. Moreover, facilities such as Systematic Transfer Plan and Dynamic Fund allocation will help you safeguard your investments against market volatility.
Now that you are aware of these various tips to choose the best child plan. Invest in a child insurance plan and secure the future of your child today.