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.