When it comes to insurance policies, there are various options that one can choose from. Life insurance policies, retirement policies, investment policies, term policies, among many other categories. Each policy has features, objectives, benefits to rely on. One such policy category is children’s policy.
Everyone wants their children to have a bright and financially secure future. Parents save and work hard for years. Since the cost of almost everything goes up, it is important to have enough money to cover college fees and even their wedding expenses. This is why one should consider investing in a good child insurance policy.
Various insurance policies are designed to secure the child’s future with timely benefits.
But since there are so many policies, finding the right one can be a bit tricky. Always take help of people who are knowledgeable and knowledgeable about insurance.
Here are a things to remember:
Many people tend to wait until after their baby arrives to plan for the future. This can be a mistake as the cost of living and education increases significantly over time. One should think of investing in an insurance policy as soon as the child turns 18 to arrange corpus. This will give a longer period and thus help in managing the premium amount and benefits accordingly
Age and prerequisites
It will determine which word to choose based on the child’s age and future needs. Some plans are meant as marriage plans, others are term plans and education plans to support expensive tuition. Before taking a policy the buyer needs to determine the exact future needs of the child.
Premium and term
Now, each policy will have a term. This again needs to be fixed by calculating the child’s age. Every policy has a maturity age at which the policy will expire. The longer the term, the higher the premium. However, longer stays usually provide better benefits. Also, one must consider the premium that one has to pay at regular intervals to maintain the policy. Also, the mode of premium payment should be decided in advance.
Many plans allow insurers to add discount benefits to the policy at an additional charge. These premium waiver benefits are very helpful in case of an accident during the policy term. As per the waiver, the insurer does not have to pay the premium to the beneficiary if something happens.
Insurance policies should always be purchased based on future requirements, financing capacity and investment appetite. Risk factors and inflation factors should also be kept in mind while choosing any insurance policy.
Choosing the right plan like LIC Kanyadaan Yojana can be a very good thing for the child’s future. One can easily buy LIC Kanyadaan plan to cover future expenses. LIC Kanyadaan policy is great for availing various benefits during the policy term.