Undoubtedly, parenting is all about creating beautiful memories with beloved children and fulfilling every minute obligation towards them by bestowing the best life. Being parents is joyous feeling but holds a bunch of responsibilities. Planning for the best future and a secured life for the children is an integral thing which every parent tries to grab on. Regardless of existing insurance plans, one must go for child plans to secure the future of the children. It gives you head start on saving, right from the birth of the children till they withdraw the returns in their adulthood.
Below are some tips for buying Child Plans:
1) Future inflation should be taken into consideration while buying a child plan as its funds will be used in future.
2) Time should be chosen wisely to get the return.
3) Premium amount directly depends on the sum insured and maturity amount selected by the buyer.
4) Invest in premium waiver benefit plan: This will give the benefit of waiving off the future premium payments in case of death of the parents. This makes sure that the maturity benefit that was set for a certain age remains intact as planned, in addition to the death benefit paid.
5) One can either make one-time payment in case of availability of enough funds or can go for quarterly, half yearly or annual basis payment.
6) Sum insured has to be 10 times of your current salary or income.
7) Term should be chosen as per the need for funds at the different stages of your child’s life.
8) Partial withdrawal is one of the best options to fund the crucial moments of child’s life where parents choose to withdraw some amount before maturity.
9) Child appointee plays the most important role in child plan. Child appointee should be trustworthy who willingly and genuinely takes the responsibility of the child. In case of any unwanted or unfortunate event; the claim and responsibilities are passed on to the appointee
10) There are several child plans available with different insurers. One must use the technology to do the research. Online comparison and evaluation should be done to choose the best one to reach the real need of the child plan.
If you start early and invest the maximum you can for your child, the effect of compounding will create a better corpus over time.