Planning for a child means you have to be financially prepared to pay for their important expenses to avoid chaos in the future. Hence, buying online child plans India is vital. If you select the best-suited policy based on your requirements, then it will surely help you to protect your child’s future. Below are some tips to consider while buying a Child Insurance policy:
1. Start investing in a plan as soon as possible to protect your child’s future. Insurance companies in India provide these products with a wide range of maturity benefits and the payouts are given at certain life stages from 18 years onwards. Insurance experts suggest selecting a plan that involves long-term investment is better.
2. While investing, parents must understand that money will be utilized only in the future. Hence, it is necessary to estimate the rate of inflation and increased cost of education. Invest wisely to develop a strong financial corpus. Do not forget to consider the time limit when you seek to receive the returns.
3. It is good to invest in products providing premium waiver benefit. This feature enables the policy to continue, even in case of an insured’s death. The children will get all the advantages even if the parent becomes disabled. The maturity benefit that comes under the policy will remain intact as defined.
4. Premium is based on the sum assured as well as on the maturity amount preferred by a customer.
5. Know available premium payment modes because if the person is with sufficient funds, then he can make a one-time payment. The policyholder can select to pay premiums on the half-yearly, quarterly or annual basis.
6. Opt or a child plan that offers the best combination of debt funds and growth.
7. Industry professionals’ advice to prefer a policy that includes the transfer system to make sure that your gains in the child plan investments are completely secured.
8. Buy sufficient risk coverage to get a considerable lump sum amount as a death benefit that can aid policyholder’s child and family in case of an insured’s demise.
9. Select a policy period based on the financial needs of your child at various life stages.
10. Calculate the total assured sum that you would receive when the child insurance policy matures and then invest accordingly.