How to Plan Your Child's Future With Right Finances?
Future planning is a wise step to do in every walk of life. It becomes all the more important especially when a new member comes to your family. As a parent we try all means to secure the future of the child by investing in various mediums like gold, ornaments, property, share or securities, insurance policies. But, Best Child Plan Policy offered by insurance policies are modern day dual benefit investment tool that will help you overcome the pressure of the financial arrangements of your child's life. This is a plan designed to cater your child needs at every walk of his or her life, whether you're there around or not. It's a perfect child care plan of modern times.
Child plan help you ensure that the financial support required for your children to pass through the essential phases of his or her life is taken care-off by the insurance provider. Today, child insurance is available in various format and these can help you balance the risk of your children's future to a great extent.
Best Child Plan Policy is insurance-cum-investment plans offered by insurance companies similar to ULIPs. When you pay the premium for the plan, part of the premium amount goes towards paying for the life cover. Remaining part of the premium is invested in various instruments either debt or equities. Parents invest money and can withdraw the savings once the child reaches adulthood or in exceptional cases if the parent were to meet with an unfortunate event child plan will be able to provide a life cover for the financial needs of children and lump-sum money is paid out to the child as well. Child insurance plan will continue till maturity after the death of the parent and all the future premiums will be paid out by the insurance company! This unique feature is called Waiver of Premium.
Often people have this tendency to push the plan a little more to let their kids grow first and then start investing. However, ultimately it will impact on the earning in the long run. The best time to invest in these plans would be when your child is around one to two years. This way you would be able to place your premium well in the type of funds to choose from such as equity, debt or balanced funds.
Here are few tips to choose Best Child Plan Policy for their sound future:
Understand your income source, risk appetite, child's dream to become in life, and then gradually start planning towards the market-linked investment plans. You will need to access child needs, consider inflation costs, and other immediate requirement before deciding a suitable sum assured.
Terms & condition, policy patterns, switch flexibility, claim procedures, fine prints, clauses are very important part of your child policy. All plans come with some advantage and to understand the features of the plan in detail it is essential to go through the policy documents. To ensure an efficient and timely claim settlement process, it is important to check for all the important dates and timelines.
Some Best Child Plan Policy come with investment in market linked funds, it is important you have at least a basic idea on equity or debt markets. Of course, there are always financial expert to help you swim across safely but finally it's you who should master the art. This way you can extract better returns. Secondly, don't get panic or too emotional with the market tides. Take a calm and wise decision during such times. Keep reviewing your plan and talking to financial expert about the situations.
Partial withdrawal help parents meet the financial needs of their child key moments in his or her life such as admissions in school or college, other expenses, extra-curricular activities, medical emergencies etc. Therefore, it would be wise to monitor the funds time-to-time to produce maximum earnings for your child benefits.
Ultimately, as a parent you will always want to create a shield of securities around child for safe future. A good Best Child Plan Policy will yield high returns with every growing stage of the child. It's like building a foster family who will fulfill your child's dream just in case you meet with untimely loss of your life.