Things To Consider While Buying Child Plans In India
Table of Contents
Parents are always worried about their kid’s future education and sacrifice their leisure expenses if needed. It is where a child insurance policy comes into the picture. Child plans provide assured payouts to finance your child’s education so they will be able to lead a comfy life ahead. Even in case of unfortunate circumstances, when parents aren’t around, the child’s needs can be properly taken care of.
In the same way, in case of disability or death of policyholders, the child policies make regular payments and take care of your child’s goals. As such policies come with an in-built premium waiver, the future premium of this policy is waived off, in case anything happens to a policyholder.
Important Factors to Look At When Buying Child Policy
Child plans assist you to fund all your child’s expenditures in future, the plan provides a sum assured if you pass away when the policy is running, in this way you will ensure your kid's sufficient financial resources that will help them achieve their aspirations and goals.
When buying a child plan, you should look for the plan that provides you with a maximum number of advantages as this plan can become a primary source of income for your child.
Start Early
If you are looking to start, then start early. Such investments offer a long-term horizon for investment, thus helping an investor to build wealth periodically, so, starting early is a key with such child plans. Even experts suggest selecting a child plan that encourages long-term investment.
Tenure and Your Expectation
Invest in the plan that ensures betting return and your child gets the required fund every time to reach their future goals doesn’t matter what their situation is. There are two main requirements for which many parents want substantial financial funding, it is your child’s education and wedding. You have to calculate the needed funds taking into consideration the requirement for their respective milestones.
Risk Appetite
If you do not like taking any risk on the investment and want a child policy with a guarantee, you must choose an child cum life insurance plan that can give you enough cover and make sure proper protection against inflation while covering your life against uncertain events.
Claim Settlement History
You buy an insurance plan to get the promised help in times of trouble. Thus, before you plan to invest, you must verify the claim payout percentage of a company to make sure your investment is beneficial and secure.
Add-on Rider Benefit
Most insurance providers offer you an option to improve your child's policy rewards just by including rider add-ons. Such riders provide an additional sum of money, over the basic plan benefits, toward the real contingencies, like unintended injury or death, and diagnosis or serious health issues.
To Sum Up
These are some things that you must know before investing in a child insurance policy. Whether you choose an endowment plan or ULIP, your decision completely depends upon your risk appetite. It’s always better to start saving early and ensure your kid's bright future.
Offering triple premiums, investing opportunities and savings, a child plan assures that money isn’t a barrier when you are on your way to meeting important milestones in the life of your child. Thus, keep these key points in your mind before you go ahead with any child policy.
Also read: Know All About Child Plans - Detailed Guide
