Child Insurance

Children are a source of joy and parenting comes with a huge responsibility of ensuring that we safeguard our children and arrange for their future financial needs.

Get the Right Coverage

Children are a source of joy and parenting comes with a huge responsibility of ensuring that we safeguard our children and arrange for their future financial needs.

The simplest and best way for investing in your child’s future is to pick out a CHILD INSURANCE PLAN. From a very early age of the child (say birth), you can start investing fixed amounts every year and this can be timed to mature when your child attains a certain age, say 18 years. Major events in your child’s life, like higher studies or marriage can be planned and funded by Child Insurance Policies if you take sufficient & adequate return plans at the right time.

In case of an unfortunate event of you and your spouse passing away , if you have picked Child Plans which offer built-in flexibilities that keep the policy active and waive off the premium even after the death of the parents, your children’s future will continue to be protected and provided for. You must look for these options as they are extremely useful and no other financial tool offers such flexible options.

Types of Child Insurance Plans:

Traditional Plans: As the name suggests Traditional plans are the ones which come with a guaranteed amount of payout. They are low on RISK as the Insurance companies plough the investments in safe and low yielding products. Though the returns will not be great, they will be sure and predictable.

ULIPs: Under the Unit Linked Insurance Plans, the insurance companies will, on your behalf, investment your money into equity markets that offer chances of higher returns over a longer period of time. You have the flexibility of choosing to invest in debt instruments and also, to decide the equity-debt investment ratio. In this way you can get higher returns than a traditional plan and yet be secured while having exposure to equity markets.

Factors to consider when planning for your child’s future expenses:

  • Start Early: so that you get to reap maximum benefits. Power of Compounding helps you accomplish your goals with ease as the longer the horizon of your investment, the larger your returns will be.
  • Need Analysis: People normally fail to set their goals and aspiration correctly and also, do not properly analyse their monetary need and future requirements. It is important for you as a parent to have clarity on your child’s possible future needs so that you can plan accordingly.
  • Make a Proper Plan: You may have come across many people who complain of the ever rising cost of education and other children related expenses and these folks usually end up taking a loan or making haphazard expenses for their child’s future only because it has not been planned well in advance. If the cash flow analysis has been properly done from the start, then the execution of the same will not be very difficult. Thus the key to success is PLANNING.
  • Be Diligent: Take time to carefully draw out a plan and once it has been thoroughly designed, follow it diligently. Do not deviate unless it is absolutely necessary. Once the need is identified and the plan is in place and you must follow it to the T.
  • Review: Undertake a periodic review of your plans, just like you would check the road map on your trip to some place, to see that you are travelling on the correct path. Timely checks are important to keep you on track of Financial Planning for your Child’s future expenses. You work hard and earn to provide the best to your family. Human Needs, Dreams, Goals and Aspirations keep changing with time, lifestyle, etc. and thus, reviewing them helps us be on track.
  • Contingency Plan: Have a PLAN B; that complements your original Plan; ready so that in case of a requirement for any additional funding at any point in time, you do not experience a shortfall in reaching important milestones of your life, i.e. your Child’s Higher Education Expenses!

Tip : You should choose a portfolio mix with diversified asset classes according to your risk appetite. Planning for your child’s future expenses will then be a cake walk for you.