Tips to Choose the Best Child Plan
Amongst many insurance plans, Child Plans or Education Plans are one of the most popular plans chosen by customers. This is primarily because, these plans give an assurance of covering your child’s future even when you as a parent are not present to fulfill your child’s needs. Today, the insurance and investment market is merging slowly and hence, it has become a mandate to opt for a Child Plan that provides optimum security as well as monetary aid with additional benefits.
Get Your Financial Goals Cleared
This holds true for any financial plan you choose, be it life insurance, Unit Linked Insurance Plans (ULIPs) or Child Plans. And the first tip for financial planning is to start early. The year you become a parent is the time you should start thinking about your financial plans. There are some who depend mostly on insurance policies to secure their future. But others also look for equity, real estate and gold. So, ensure choosing the right child plan which has multiple benefits like ULIPs.
Choose the Right Child Plan
There are plans that give you benefits of investment during maturity. Other Child Plans reap benefits at different stages of your child’s life – for instance, 12 percent when the child turns 12 years old, 21 percent when the child turns 18 etc. There are many Child Plans which gives you the entire amount only at maturity. There are plans which give double benefits – insurance policy with steady premium and an investment fund for maximizing your wealth. For instance, ULIP Plans give higher returns when the plan is signed up for more than 14 years.
Security of the Return is Important
There are Education Plans and Child Plans where premium can be given at one time, monthly, quarterly or yearly basis, and can even be given despite the death of the policy holder. If the child is not in a position to pay the premium, there are options to adjust the premium amount at maturity. Premium waiver plans can also be adopted. Experts are also of the opinion that rather than going for any Child Plan or Education Plan in the name of the child it is better to buy an insurance plan in your own name and put the child as the beneficiary. With ULIP Plans you can go for insurance but even get an 18 percent return on your mutual fund investment after 15 years or more.
Look For Flexibility in Child Plans
Sometimes during the tenure of the plan, there may be requirement of emergency funds. Flexibility is hence required in child plans where there is option to withdraw money from the plan, when the child plan is not discontinued.
Today, Child Plans are not just a part of the insurance industry, but also are considered as investment avenues for securing child’s better future. Hence, ULIP Plans come with security & flexibility. However, consulting financial experts and indulging in thorough research about all plans can help you make an informed decision.