Becoming a parent is one of the most special moments in one’s lifetime, but along with the happiness and pride, comes the responsibility of bringing the child up in his best behaviour and ensuring that his/her future is secured.
The biggest commitment of a parent is perhaps being able to provide the child with the best possible education. Hence, parents should start planning as soon as possible, so that no compromise needs to be made where it concerns the child’s intellectual future. Child Insurance is a necessity and there are several advantages attached with the various insurance plans that are available in the market.
Are these child insurance policies worth the money?
There are various savings policy types available which provide the nominee with the actual amount insured for him/her once he/she attains a maturity age of 18 or 21years depending on the policy that have been chosen etc. Additionally, the insurance company also puts the premium amount into the same plan on behalf of the policyholder. One should opt for term policy, which will depend on the income of either of the child’s parents. Most parents start planning for their children over 10-20 years before their milestone years. Life insurance policies for children are more affordable than any other life insurance policy. The parents are the investors, while the final beneficiary is the child when he/she grows up. In case the parent dies, a lump sum amount is given to the family but the child insurance plan doesn’t cease to exist. It acts as a corpus that remains intact till its exact maturity date. Additionally, the returns on insurance policies for children are tax-free and can save you a lot.
Nowadays, every Indian insurance company has a child life insurance plan. However, differences in the conditions still exist between plans and it is necessary to do your part of research for seeking out the best investment for you before signing on the dotted lines. Calculation done by a professional will give better results as it involves several factors like future market conditions, educational expenses, emergencies, etc. So, planning ahead in advance is your only option. Most of these child insurance plans aim to meet your financial needs. These insurance plans provide you with funds at pre-fixed intervals, which will help to meet your child’s financial needs at different milestone years. Now that you know the different aspects of child insurance and its importance, grab the perfect one for your child.