Familiar Information Concerning Child Insurance
We all want to protect our child’s future in some way or another. We either make investments in the bank, gold or market shares and stocks. Unit Linked Insurance policy is a well-known insurance policy that is fancied by nearly all parents. It is best to go for child insurance while your child is still young, thereby securing your child’s prospect.
A child’s education in today’s world is a huge expense for nearly all families. Moreover, a growing population of students now prefer finishing their graduation or post-graduation studies elsewhere. An education away would cost approximately 50 lakh to 1 crore or possibly even more.
This is including the up-keep of the child, travel, and hostel expenses apart from the course fee. Thus, if parents plan at an early stage and responsibly put away a certain amount of money each month, the pressure to pay for a child’s development of knowledge will scale down considerably.
So how does a child insurance plan work? The basic premise is to invest a little money all month or all year for a maximum term of 25 years, and in turn you are approved to collect your money periodically in the future. Thus, you can use some part of the money for your child’s studies and at a later stage, for your child’s marriage.
Child plans that are ULIPs help you get maximum returns for your child. Even though Unit Linked Child Insurance Plans are maligned for their unusually high-costs, they enhance benefits over the long term and one should continue for the maximum dominion subscribed in the plan. Thus, if you need returns with higher rate of growth and are ready to take on the bigger market risk involved, then you should opt for Child – ULIP Plans.
So why would one should invest in a child insurance plan? The number one reason would in all probability be for providing for your child’s improvement. Saving for child insurance is also thought-out to be an important exercise in fiscal planning. It helps you systematize your savings in addition to planning for your own life insurance.
The following are the factors to bear in mind while planning:
. Time frame for building a corpus.
. Approximate amount to build the corpus.
. Age at which the fund would possibly be required.
. Investment avenues to be considered.
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