Children’s Day is around the corner and most of you might be planning to surprise your child with gifts or a fun day out. While you are making sure that your child enjoys this Children’s Day, have you ensured that your child enjoys his future too?
Contingencies come unannounced and when they do they cause a heavy financial strain. This financial strain wipes out your finances and threatens the fulfillment of your financial goals. A secured future for one’s child is one such financial goal which all parents have. But are they able to fulfill this goal? What about you? Can you guarantee that your child would have a secured financial future?
Securing your child’s future is not a difficult job if you know how. There are two important products which should feature in your financial portfolio for securing your child’s future. These are as follows –
Health insurance plan
A health insurance plan helps meet the medical expenses which incur if you face any medical emergency. Since your children are highly prone to accidental injuries and infectious ailments, having a health insurance plan in place is recommended. The plan would pay for the hospitalisation cost and other associated medical expenses if your child faces a medical emergency. Since the medical costs would be covered, you wouldn’t have to worry about your savings being drained. You can, therefore, ensure the best healthcare facilities for your child if you have a good health plan.
- Tips for buying health plans
1. Choose a family floater plan to cover your dependent children at affordable premiums
2. Choose a plan which has good and comprehensive coverage features
3. Opt for a high sum insured as medical costs are quite considerable
4. Critical illness plans are also recommended for an enhanced scope of coverage
Child insurance plans
Child insurance plans are life insurance plans which promise to create a corpus for your child even if you are not around to do so yourself. These plans are savings-oriented plans which have an inbuilt premium waiver rider. In case of death of the parent, the premiums payable are waived off. The policy continues and the insurance company pays the premium on the parent’s behalf. When the plan’s term comes to an end, the promised maturity benefit is paid so that the child can use the benefit for his financial needs. The USP of child plans is the premium waiver benefit. This benefit makes the plan most suitable for securing your child’s future. You can choose a term depending on when your child would require a financial corpus. Thereafter you can relax knowing that even in case of your premature death the child plan would create the promised corpus when the plan matures giving your child the financial help he/she requires. No other insurance or investment plan offers this security.
- Tips for buying child plans
1. The plan should be bought when your child is young. The term should then be selected to match the milestones in your child’s life when funds would be required. For instance, if your child is 5 years old, you can buy a plan with a term of 15 years knowing that when your child turns 20 funds might be required for higher education
2. The sum assured should be sufficient to pay for the child’s financial needs. You should work out your child’s future financial needs keeping inflation in mind and then choose the sum assured.
3. Child plans are also offered as unit linked plans. These plans are better than traditional savings oriented plans. So, ULIPs should be chosen as you get the benefit of market-linked returns which would help you in creating a good corpus for your child.
Make this Children’s Day fun for your children and don’t forget to secure their future too. Your child is your bundle of joy and you wouldn’t want any misfortune to fall on them, would you? Plan in advance so that your child remains financially unaffected even when life throws challenges. Invest in health insurance and child life insurance plans and fulfil your duty of a responsible parent.
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