The only wish of parents is to see their child happy and be the best in everything. Along with rearing duties, financial planning for the child’s future is important as well. With rising inflation, the cost of education, health expenses, and the standard of living is being affected.
Under such changing times, the best way to secure a child’s future is through a child insurance plan. To buy the right plans is vital for your child’s future. We list out five points to consider while buying such an insurance plan.
- Buy A Plan As Early As Possible
Most insurance firms design these plans where the maturity date coincides with a child turning 18 years of age. Many offer payouts at regular intervals after the child turns 18 and maturity benefits too. To buy such plans early, when your child is still an infant, is prudent. It gives you a long investment period to build a healthy corpus.
- Look For Plans With Premium Waiver Option
In case of a parent’s death, the insurer waives off the remaining premiums and the insurer continues to fund the insurance policy until its maturity. That’s the benefit of a premium waiver option. This feature ensures the child insurance plan remains uninterrupted and provides the maturity benefit in spite of the death of the parent. Thus, the child’s financial future isn’t interrupted.
- Option Of Partial Withdrawals
There are times when an emergency arises with regard to your child without any premonition. You may need to withdraw some funds from the insurance policy and that’s when partial withdrawals are most helpful. Plans with such a feature are helpful as you can meet the sudden expenses without going in debt and the insurance plan continues without any interruptions.
- Choose A Plan Which Offers Cover As Well As Good Investments
There are many plans offered by insurers. An ideal child insurance plan will invest in a good mix of debt and growth funds to gain good returns in the long run. Another aspect is to find a plan which gives a substantial cover in case of the parent’s death so that the child’s future is secure.
In the age of the internet, it’s easy to compare insurers and their offerings. There are many aggregator websites which offer a listing of child insurance policies, their features, and benefits. Go through them, and go through the user comments too as to get an idea about various plans, and then make a choice.
A child insurance plan is your best bet when it comes securing your child’s future. Go for insurers such as Aegon Life and HDFC Life which offer great plans with features aimed to give your child the best cover for his future.