As per survey report most parents start planning for their child's future quite late. The need to meet the rearing priorities usually leads to overlooking the financial planning. In order to reap the benefits of insurance plan, it is strongly advised to start planning for the child's future during his/her formative years, i.e, between 1-3 years to ensure that sufficient funds are available when the child is ready to embark on a career path. There is no dearth of good child insurance plans in the market. If chosen carefully, a child's plan can become a solid long term vehicle to manage the future of a child. So, how do you choose the right child insurance plan? Below are some tips to guide you-
- Know your goals= Planning is the first step to be taken before starting out investments for a child. We should understand how much money would require for child’s education, marriage, etc. The other vital factor to consider is the expected inflation rate and its effects on value of investments. So, you should quantify your objectives with a reputed financial planner and choose an apt child insurance plan.
- Invest in child plans that offer premium waiver benefits= On the death of a parent, insurer waives all future premiums and continues funding the policy till its maturity. The premium waiver benefit ensures that the maturity benefit that was set for the certain age remains intact.
- Carefully read product brochure and understand the additional costs involved in the product Compare all available child insurance plans before picking the one.