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The birth of a child brings happiness and joy to the family. As you step into parenthood you try to provide the best lifestyle & education for your children. Given life's uncertainties, it is important to secure their present as well as protect their future.
Here is what you can do:
Prepare a Financial Plan and Start Investing
Step-up investments. Draw up a financial plan and ascertain the maximum amount you can save every month. After factoring for an emergency corpus, allocate the remaining amount towards a good mix of insurance (life and health) and investments.
You can consider investing in child plans, like the Max Life Shiksha Plus Super, that offers a comprehensive solution for a secure and bright future of your child. In a plan like this, the parent is the life insured and the child is the nominee.
Buy a Term Cover
The term cover will serve as your #BackupPlan and help your family meet their basic financial requirements or liabilities in case you are not around. You can get a plan for as low as Rs. 576/ month*. You can calculate your customized premium in under 2 minutes.
Estimate Your Child's Financial Needs
Chart out the future you aspire for your child. Highlight the key milestones in her life and start earmarking amounts that your child will need in that period. Remember to use a future expense calculator to ascertain these amounts.
Be Sure to Factor in Inflation
Inflation can derail even the most carefully planned finances. In such a scenario, a robust yet flexible combination of investments and protection can help you get started on the journey to wealth creation for your little one.
Prioritize and Improvise
Insurance companies offer several types of plans. Since you are planning to build a corpus for your child, a combination of a Term Plan (for protection) and a Child Plan (for wealth creation) is a great way to get started. Also, choose an appropriate set of riders to make the most of these plans.
With well-planned investments and focus on long-term investing, you can easily attain your financial goals.
*Calculations for a 28-year-old healthy, non-smoker male for policy term 30 years
Max Life Shiksha Plus Super (UIN: 104L084V04) is a Unit-Linked Non-Participating Individual Life Insurance Plan
Life insurance coverage is available in this product. In this policy, the investment risk in the investment portfolio is borne by the policyholder. The linked insurance products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender/withdraw the monies invested in linked insurance products completely or partially till the end of the fifth year.
Unit Linked Insurance Products (ULIPs) are different from the traditional insurance products and are subject to the risk factors. The premium paid in the Unit Linked Life Insurance Policies is subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Max Life Insurance is only the name of the insurance company and is only the name of the unit-linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these funds, their future prospects or returns.
ARN: 01122019/Blog13
