Child Plans: Are they worth investing in?
Welcoming a baby to this world is a blissful feeling for expecting couples. While parents cherish every first of their kid – first word, first step, first fall that made the whole family rush to the hospital. But it is when your kid gets ready for their first day of school is when most parents start worrying about their child’s education.
With the increasing education expenses and inflation rate, this has become a household scene in India. However, early investments into the best child plan will save you years of worry and cost-cutting ahead.
What is a child’s plan?
Child investment plans provide a dual benefit of insurance and investment. If the policyholder survives the policy tenure, the sum assured is offered in a lump sum or at regular intervals. However, what makes child plans in India appealing to most parents is the benefit of a premium waiver in case of policyholder’s sudden demise. In such cases, the sum assured is transferred to the nominee and the rest of the premiums are waivered.
This protects your child’s future against the unforeseen events without having the burden of continuing to pay premiums.
How does child policy work?
As child plans offer the dual benefit of insurance and investment, the premium paid is invested in life cover as well as debt options. Here are the significant benefits of investing in child plans in India:
- Securing your child’ financial future
- Predetermined payouts
- Waiver of premium in case of policyholder’s untimely death
- Collateral investment options for a higher education loan
What are the options?
Another option to invest in a child’s future is investing in mutual funds by buying the term insurance and investing the rest of the amount in mutual fund SIP. With the help of a financial advisor, you can plan goal-based investment based on your risk appetite and suitable tenure.
Child policy or insurance with investment: Choose wisely
Though most investors find higher returns on mutual fund investments appealing, when it comes to securing the child’s future one shouldn’t mix it with the investment needs. Moreover, through added benefit riders such as death rider and premium waiver, you can make sure your child’s education and financial future are secured even against the unfortunate events.
Early planning and investment into the best child plan will help you build the corpus for your little one’s future while helping you relax and enjoy your life without the burden of huge cost-cuttings.
Welcoming a baby to this world is a blissful feeling for expecting couples. While parents cherish every first of their kid – first word, first step, first fall that made the whole family rush to the hospital. But it is when your kid gets ready for their first day of school is when most parents start worrying about their child’s education.
With the increasing education expenses and inflation rate, this has become a household scene in India. However, early investments into the best child plan will save you years of worry and cost-cutting ahead.
What is a child’s plan?
Child investment plans provide a dual benefit of insurance and investment. If the policyholder survives the policy tenure, the sum assured is offered in a lump sum or at regular intervals. However, what makes child plans in India appealing to most parents is the benefit of a premium waiver in case of policyholder’s sudden demise. In such cases, the sum assured is transferred to the nominee and the rest of the premiums are waivered.
This protects your child’s future against the unforeseen events without having the burden of continuing to pay premiums.
How does child policy work?
As child plans offer the dual benefit of insurance and investment, the premium paid is invested in life cover as well as debt options. Here are the significant benefits of investing in child plans in India:
- Securing your child’ financial future
- Predetermined payouts
- Waiver of premium in case of policyholder’s untimely death
- Collateral investment options for a higher education loan
What are the options?
