Becoming a parent is
always a special moment but with it comes the responsibility of bringing him up
to be a successful man and ensuring that his/her future is secured. For Indian
parents, the biggest commitment is perhaps being able to provide the child with
the best education. However, education today is not spared from the rising
costs and inflation.
It is even believed sometimes that the first impact of
inflation falls upon education of a child. Therefore, parents need to start
planning as early as possible such that no sacrifice needs to be made when it
concerns the child’s intellectual future. As of today, a child insurance plan is probably the best weapon in this regard. There are even several
other advantages that child insurance comes with in India.
·
Life insurance policies for children are more
affordable than any other life insurance policy
·
Investment in children insurance plan is
similar to an ULIP investment. The only difference is that the investors are
the parents while the final beneficiary is the child when he/she grows up
·
In case the parent dies, a lump sum amount is
given to the family but the child insurance plan doesn’t terminate
itself. It acts as a corpus that remains intact till its exact maturity date
·
Te returns on insurance policies for children
are tax-free and can save you a lot
Every Indian
insurance company today has a child life insurance plan. However,
differences in the conditions still exist between plans and it is necessary to
do your part of research for seeking out the best investment.
Another thing that
seems a little confusing in arriving at is the exact amount that should be
contributed every month as premium towards your child’s policy.
In this case a
backward estimate is necessary but this calculation is better done by a
professional as it involves several other factors like future market
conditions, educational expenses, emergencies, etc. realizing later in life
that the premium was less when you could
have contributed more wouldn’t solve the case. So, planning ahead in advance is
the only option.
