We always ensure to secure children’s future and present both. We make plans to help them in future and therefore start investing in various plans so that our children foster the best future life. Small investments today will be great support in the future. An investment for the future keeps your money safe and multiplies to savings for the future. We have to plan for their future studies ad start saving today to overcome the later problems. Insurance companies help you to plan the child’s future with them with various plans which are confusing. Children’s plan can be classified in two types:
- Unit linked children plans: This plans is any other plan with market linked returns. Buyer can choose the plan based on their financial risk. Similar to other ULIP plan charge for premium, mortality and policy administrations are associated with the child’s plan. During any mis fate situation the child is given the sum of the assured money making it in favourable plan for future.
- Traditional children plans: They come in two categories 1. Money back plans 2. Endowment plans. In money back plans the child is given the survival benefits in regular intervals and in endowment plans the insurance company offers one time payout with planning for future expenses like higher education and marriage.
Therefore before opting in for a plan goes through these tips before choosing the children plans.
- Give priority to your goals before choosing any plan for your child. Prepare an estimate after you sort out other financial investments and plans and then prepare for the child’s financial future with the balance you can afford.
- Before making final decision on a plan compare the premiums offered by various insurance companies. Many of the premium might not give benefits or have inbuilt features. This is important factor to notice in the case when the parent is not alive.
- Choose those plans which are right depending on your overall awareness of risk. If you think it is risk then opt for endowment plan. Endure whatever plan you choose offers flexibility in risk.
- Start with early planning for your child’s insurance. It is believed that the investment for your children must start within 90 days of the child’s birth. Ensure that there is minimum tenure of 7 years for most if insurance plans this will help you with enough time to create good financial records on maturity.
- Understand all the charges and policies under the insurance. If you are opting for ULIP plan for your child be sure that you are thorough with the prints and not simply depending on words.
Remember that all the plans must state that the beneficiary is your child and not the parent as there are few plans in the market which can trick you. Buying and planning an efficient children plan is not a child’s play and it is the responsibility of all the parents that they are prepared and have gone through all the suitable plans offered by the insurance companies.