Securing the future of your child is your prime responsibility as a parent. Your child is dependent on you in all aspects – physically, financially, emotionally and morally. Hence, taking essential measures to ensure he/she has a secured future becomes vital. Investing in child plansis a smart way of doing so. These are premium life insurance products that are fashioned to meet all your finance related matters to fulfill the needs of your children. This can be anything like higher education, marriage, establishing them while starting a career or a business, etc.
As mentioned before, your child is totally depended on you from every angle. Hence, it is important to consider his/ her security when you are not around. Given the constantly rising cost of living, saving enough for the future of your family seems like a huge task. This has an adverse effect on the future of your child. Child plans are a systematic and secluded means of investing purely for the financial needs of your child.
Child plans not only help you to regularly meet the needs of your child but also ensure that your child is financially sound in case of your unfortunate demise. Under this plan you need to select a particular amount that is the sum assured you receive either in case of an eventuality or when the policy matures. In case the policy holder dies, the nominee of the policy or the child is given a certain portion of the sum assured and is later handed the remaining amount on the maturity of the policy.
Child plans today offer you the flexibility to choose the maturity period of the insurance. You can either take the money for the further education of your child around the time he/ she completes his/ her graduation or after his/ her studies to help them establish their own business, or whenever. While doing so it is important that you keep in mind your financial condition while selecting the maturity date of the plan. The sooner you begin to invest for your child the better are your chances of getting a longer coverage at lesser premiums. While selecting the maturity period of the policy you must ensure the duration is fixed to match the financial needs of the child.
When you select the sum assured of the policy, keep in mind the increasing cost of education and your affordability. It is possible that one may get flown with emotions and for a policy that he really can’t afford. This will result in burdening your cash flows.
With the various child plans in the market, it is completely up to you to choose which meets your requirements the closest. But remember to evaluate your risk taking capacity. Best is to opt for a traditional or a unit linked child plan as they offer different benefits and increase your sum assured. This makes sure you have enough to fulfill your child’s dreams.
What are child plans all about