For every parent, the health and happiness of their children is of paramount importance. As a parent, you take utmost care in planning your child’s future and want to give them nothing less than the best. With rising school fees, college tuition, new age career options and more, planning for your child’s future is essential. A good plan will help you cover all the important phases of your child’s life like schooling, college – tuition, travel & Housing, marriage, health care and more.
Life insurance plans that offer guaranteed returns along with life cover can prove to be a good financial tool that helps you to be prepared and fulfill the dreams of your children, no matter what. Guaranteed Income Plans from Life Insurance Companies offer you the best of both worlds – guaranteed returns that are free from market volatility (as per terms and conditions)
policy) and a life cover to secure your child’s future in case of an unfortunate event. Thus, securing your child’s dreams for life.
Read also: Happy Children’s Day 2021: The secret to teaching kids how to save their money
Here’s what you should look for while finalizing the plan:
Features of the plan
Choose a plan that offers you multiple benefits and options to customize the plan as per your unique needs and budget. An ideal plan will offer you multiple plan options, option to extend life cover, tax benefits, flexibility in payment terms – monthly or yearly payment modes as per your budget, flexibility to get regular income or lump sum payouts and much more. You can also check out the schemes which give bonus at regular intervals to maximize your investment
Choose the payment option that suits you best
Depending on your child’s needs, you can choose between a regular income payment or a lump sum payment. An income payment will give you money at regular intervals – this may be ideal for paying, for example – an annual tuition fee. Lump sum payment gives a larger amount and lump sum payment at the end of the policy term, this type of payment method can be used for child marriage and much more. Some policies also provide you with options that give you a combination of both.
life cover
It is also important to be prepared for unfortunate situations. Your child’s dreams should not stop in the event of an unfortunate event. Hence, it is important to have the right life cover.
Riders
Riders are optional benefits included in a life insurance policy that can provide additional financial protection to the policyholder at a nominal additional cost. They are linked to Aadhaar/Primary Policy. Based on your specific need and budget, you can choose a suitable rider. One rider that can prove useful while planning for your child’s future is waiver of premium
riding. A critical illness or disability can adversely affect one’s ability to save and earn. This rider waives all future premiums in case of critical illness or disability. Hence, the policy continues and your financial plan for your child’s dreams stay on track.
Choose your policy payout and payout term
Look for a policy that lets you choose the policy term based on the age of your child. Some plans offer a policy term option between 10 and 25 years. You can also check the options for choosing the premium payment terms – ‘Limited Pay’ or ‘Regular Pay’. Limited premium paying term is suitable if you want to pay premium only for limited number of years. Regular payouts are suitable if you want to invest and accumulate wealth for a higher number of years, as premiums are to be paid for the entire policy term. Regular premium paying term plans may charge lower monthly or annual premiums than limited premium paying term plans.
Choosing the right plan with a plethora of benefits this Children’s Day will ensure that your kids have a secure future, and they don’t have to compromise on their dreams, no matter what.
Disclaimer: Murli Jalan is the Head of Bonded Agency and Direct Distribution of Bharti AXA Life Insurance. The views and investment suggestions of the experts in this News18.com article are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decision.
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