For every parent, health and happiness of their children is most important. As parents, you take extreme care to plan your child’s future and want to give them nothing short of best. With rising school fees, college tuitions, new-age career options and more, planning for your child’s future well in advance is essential. A good plan will help you cover all important stages of your child’s life like school education, college – tuition, travel & accommodation, wedding, health care and more.
Life insurance plans that offer guaranteed returns along with a life cover can prove to be a good financial tool that helps you be prepared and fulfil the dreams of your children, no matter what. Guaranteed income plans from life insurance companies offer you the best of both worlds – guaranteed returns which are free from market volatility (as per the terms and conditions of
the policy) and a life cover to secure your child’s future in case of an unfortunate event. Thus, securing your child’s dreams for life.
Also Read: Happy Children’s Day 2021: The Secret to Teaching Kids How to Save Their Money
Here’s what you should look at while finalizing the plan:
Features of the plan
Choose a plan that gives you multiple benefits and options to customize the plan as per your unique needs and budget. An ideal plan will give you multiple plan options, option to increase life cover, tax benefits, flexibility in payment terms – monthly or annual payment mode as per your budget, flexibility to receive payout as regular income or lump sum and more. You can also look at plans that give out bonuses at regular intervals to maximize your investment
Choose the payout option that best suits you
Based on your child’s needs, you can choose between a regular income payout or a lump sum payout. An income payout will give you money at regular intervals – this could be ideal for paying, for example – a yearly tuition fees. A lump sum payout gives a larger sum and a onetime payout at the end of the policy term, such a payout method could be used for a child’s wedding and more. Certain policies also offer you options that give you a combination of both.
Life cover
It is also important to prepare for unfortunate circumstances. In case of an unfortunate event, your child’s dreams should not come to a halt. Hence, having the right life cover is essential.
Riders
Riders are optional benefits included in a life insurance policy that can provide additional financial security to the policyholder at a nominal additional cost. They are attached to the base/primary policy. Based on your specific need and budget, you can opt for an appropriate rider. One of the rider that can prove to be useful while planning for your child’s future is the Waiver of premium
rider. A critical illness or disability can have an adverse impact on one’s savings and ability to earn. This rider, in case of a critical illness or disability, waives of all future premiums. Hence, the policy continues and your financial planning for your child’s dream stay on track.
Choose your Policy payment and payout periods
Look for a policy which offers you the flexibility to choose the policy term, based on your child’s age. Some plans offer a choice of Policy Term between 10 to 25 years. You can also check for options to choose the Premium payment terms – ‘limited pay’ or ‘regular pay’. Limited Premium Payment Term is suitable if you wish to pay premiums only for a limited number of years. Regular pay suitable if you wish to invest and accumulate money for more number of years, as premiums are to be paid for the entire Policy Term. Regular Premium Payment Term plans may charge lower monthly or annual premium than a Limited Premium Payment Term plan.
Opting a right plan this Children’s Day with wide range of benefits will ensure that your children’s future is secured, and they do not have to compromise on their dreams, no matter what.
Read all the Latest Business News here
Comments
0 comment