Planning to Buy a Child Insurance Plan? Keep these Things in Mind

Every parent in the world wishes to give the best to their child. This can be achieved by doing financial planning in advance to make sure that your child receives the best education, a secured future and emotional independence. A child insurance plan ensures that your child is not left prey to the uncertainties of life. However, listed below are some important things that every parent must keep in mind before purchasing a child insurance plan.

• Start Early

Buying an insurance plan at an early stage in life would help you in building a strong and secure financial foundation for your child. Ideally, one must buy a child insurance plan as soon as your child comes into this world.  This offers double benefits:

• The amount of premium payable is low
• It assists you in taking the benefit of compounding

• Allocation of Funds

While the traditional investment options may provide you with a pre-decided amount yet they cannot help you in combating the increasing cost of education, healthcare, etc. Therefore, it is important for you to go for a unit-linked child insurance plan that can help you in dealing with inflation. It is important for you to make a wise choice while allocating the funds depending upon your risk appetite.

Also Read - Popular Child Life Insurance Plans In India 2021

• Customisation Option with Changing Needs

Your requirements are bound to change with the increase in the age of your child. Therefore, it is necessary to check if your child insurance plan provides you with the flexibility to customize it with the changing needs. For example, there would come situations when you would need to make partial withdrawals to pay for your child’s education. Make sure to find out in case your insurance plan provides you with the flexibility to do so.

• Look for Important Features

At the time of choosing a child insurance plan make sure to look for important features like waiver of premium, life insurance, etc. Under a child insurance plan, a parent is a policyholder whereas a child is a nominee or beneficiary. A life insurance plan ensures that your child gets the lump sum amount that can be used to meet future expenses, in the event of your demise during the plan duration.

You may also like to read - Everything You Need To Know About PNB MetLife Super Saver Plan

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.