Nothing but the best will do for your little one! However, all good things in life come with a price tag. Most of us have limited income and with the escalating cost of living, its becoming increasingly tough to cope up. The only way to beat this inflation and come out as a winner is to take the help of insurance plans that will ensure that your child does not lag behind for lack of sufficient funds. For all those, who already have insurance or child plan, a pat on the back! For those who are still thinking about it, it's never too early to start planning and investing towards a corpus fund for your child's future needs. The sooner the better!
So, what are the types of children's plans available in the market today?
We have the traditional endowment insurance plans. We also have the money back plans where money will be paid out to you at various milestones in your child's life. There are insurance cum investment plans that are unit linked where not only are you protected but your money also keeps growing. Saving and investment go side by side. There are various public and private sector insurance companies that will offer you customized and flexible plans as per your requirement.
What should be the key features while taking up a plan?
A good child plan needs to cover a few key aspects to secure your child's future effectively. The plan should meet the monetary goals for important stages in your child's life. Be it higher education or marriage, the fund should meet your requirement at the correct time. In case of the untimely death of the earning parent, the plan should secure your child's future. Ensure that the plan has a critical illness, a death benefit and a premium waiver benefit so that in your absence, the financial needs can still be catered for. Investment should be sufficient in order to cover the important financial needs that of education, career and marriage. There should be flexibility in terms of premium payment and choice of term.
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