5 TIPS TO BUY CHILD INSURANCE PLAN FOR HIGHER EDUCATION
Parenthood is the best joy one can ever experience. As a parent, you want the best of everything for your children. However, inflation is steeply rising today, and with it raises the cost of child education, medical, marriage, as well as lifestyle. It is suggestive to start investing early for your child’s future, in order to prepare yourself from any kind of unfortunate eventuality.
There are a variety of investment products available in the market for child education planning, depending on your risk appetite, the time horizon and your investment capacity you can pick the ones that best suits you.
Although, child insurance plan is the safe and one of the best investment instrument to ensure bright future of your child. Life insurance plan is not enough, as a standalone to meet your child’s future education needs.
While a child insurance plan is acknowledged for its dual purpose of insurance and investment, it fulfils two key requirements:
- Financially securing your child’s future
- Providing financial aid for major milestones of life such as higher studies, seed capital, and marriage.
With quite a number of child insurance plans available in the market, it becomes really difficult to choose a perfect plan that will best meet your child’s future financial needs.
Here are a few tips that will help you make an informed decision while choosing the right child insurance plan.
Tip #1 To Buy A Child Insurance Plan
Start Early. Reach Safely.
While going on a long trip, we prefer having our itinerary and plans in place. If you plan to go by plane, you reach airport around two hours prior to the flight. And to do so, you start early from home.
Investing for the future of your child is no different. Even if your milestone is about 10 years down the line, it is advisable to start investing today. Majority of the child insurance plans available in the market promise maturity benefits and pay-outs at important life junctions. Also, by starting early, you can create a desired corpus and gain high returns. You can also balance the risk and returns of your investment portfolio.
Tip #2 To Buy A Child Insurance Plan
Don’t Overlook The Changing Economic Factors
With growing inflation, grows the cost of everything – be it education, medical expenses, lifestyle, clothing, food, or accommodation. As a parent, it’s very crucial for you to understand this very reality of life. The funds that you will save for your children would only be utilised in the future when your children are pursuing higher education.
During that phase of life, the cost of education will be higher then it’s today. While making investments you need to consider this very factor in order to stay equipped to fund your child’s higher education needs.
Tip #3 To Buy A Child Insurance Plan
Pay Attention To The Footnotes
Footnotes are often the most ignored section of the documents, and at the same time, the most essential one too. Each Insurance or Investment plan is designed differently with its own set of unique features. Hence, it’s very important to read the policy documents of the insurance plan you are buying in order to understand the features in detail.
Tip #4 To Buy A Child Insurance Plan
Provision of Partial Withdrawals
Life is never predictable. Hence, it is important to consider them while buying an insurance policy. Provision of partial withdrawals will give you or your child the flexibility of meeting these inevitable expenses.
Tip #5 To Buy A Child Insurance Plan
Choose Funds With Better Returns
Most of the child insurance plans are linked with other growth with risk investment instruments like equity. This ensures better returns n your insurance plans. It also give you the facility to choose your funds, this, in turn, will help you safeguard your investments against market instability.