When you know your child’s interest, polish it to develop a masterpiece of his or her career. In fact, child insurance and life insurance works as the most appropriate tool for a child’s future planning. Today, the majority of people have relatively fixed sources of income and financial planning for children’s benefits become an important part of the family’s budget.
Online child insurance policies in India are considered as excellent long-term instruments to protect a child’s future. These insurance products invest over the long term systematically and have the ability to manage inflation. Thus, it effectively matches the increasing costs of education.
The security factor available in these plans makes it robust to protect child’s future against any emergencies. Below are few simple tips to select the best child insurance policy online for your children:
Plan and invest for your child’s secure future as early as possible
Most insurance companies in India provide plans with certain maturity benefits made to coincide with the child attaining 18 years in age or timely release of payments at specific life stages from 18 years onwards.
These products give a long horizon to invest that systematically supports you to develop a strong financial corpus. Therefore, set your goals and take help of a financial planner to select a policy which motivates such long-term behavior.
Opt for plans which give premium waiver benefit
Most child insurance policies give premium waiver benefit either as a vital feature or an option in the basic policy. It is a critical feature in these policies. In case of parent’s demise, the premium waiver benefit makes sure that future premium payments, from the date of demise, are waived off as insurers continue to fund the policy till its maturity date.
Select a policy that gives mix benefits of enough risk coverage and investment options
Invest in an online child insurance plan as early as possible because it gives mix benefits of growth and capital protection. Equities offer good returns over the long run. It is advisable to prefer a plan that involves the systematic transfer option because it makes sure about investment protection.
Child plans have dual tax benefits; the maturity amount is exempt from tax under section 10(10D) of the Income Tax Act, 1961 and premium paid are eligible for deduction from taxable income under section 80C.
Read the product description carefully and evaluate the product cost
Insurance compani9es in India ask for the charges which buyers have to pay for the plan and it is mentioned in the product brochure clearly. According to industry experts, compare the plans available in the Indian insurance market in terms of flexibility, charges, insurer’s record, claim settlement ratio etc.
Buying online child insurance is a significant move in protecting future of your child. So, do thorough research and contact insurance professional for help.