In today's competitive world, providing best education to the children has become the top priority of all parents. To give the highest quality education possible, the parents need to spend huge amounts in education fee. There are numerous child insurance policies to meet the differential needs of demanding clients (usually parents or guardians).
Factors to be considered while taking a Children Insurance Policy:
1) Make an approximate estimate of the funds you require for child education or marriage. With this information handy, you will be correctly able to decide the regular premium allocation required and the duration of your child's life insurance.
2) Find out about additional benefits like health insurance, accident cover etc.
Compare the annual premium charged and returns offered by various child insurance India plans of different insurance companies.
3) Make sure to ensure your life rather than the child's. Also, it is beneficial to by an insurance policy that has a built in clause about waiver of future premiums in case of death of the insured (parent). This will guarantee that the policy continues no matter what and your child receives an assured sum at maturity.
4) Check the past performance record of the company you are purchasing child insurance from.
It is always advisable to buy the policy in the parent's name rather than the child's, since the child any way has no dependents. Still if you plan to take a policy in the child's name, make sure that it is a premium waiver policy in case of death of the parent. This way your child will not shoulder the burden of regular premium payments and continue to reap the life insurance policy benefits.
5) Child Plans policies generally attract tax benefits. Find out if the policy you are considering has any such advantages.
Most of us are aware of the financial consequences and burdens that may befall a family if an income-earner in the family suffers an accident or a serious illness. Hence, we tend to believe in the need to insure the adults in the family more readily. It is also a fact that it is easier or more possible to imagine the adults in the family getting hurt. Picturing a child getting hurt or accepting the possibility of that happening is more painful and therefore, avoided.
However, as adults, we do have the responsibility to face difficult facts and make the right decisions. I am not asking you to picture the worst happening to any child. I am asking you to accept the fact that kids will be kids. They are most active and often indulge in play that could possibly hurt them. All it takes is a fall and a resulting broken wrist to burn a hole in your pocket. These are unforeseen expenditures and with rising living costs, such expenditures have the ability to take its toll on us.
Common Medical Conditions
There are also certain medical conditions that are more common among the younger generations. For one eczema and asthma had been on the rise. Getting your kid insured from a young age before these conditions show up will help make sure that you can cope with the medical bills and therefore, be able to provide necessary medical attention for your child.
Lastly, it is a sad truth that there are always families out there who find themselves in the very unfortunate situation of finding out that their kids are in more serious medical conditions. At such moments, the last thing anyone wants is to be thinking about medical bills. It is more important to be there for the kid and not to have to sort out finances.
Not Only When There's A Hereditary Medical Condition To Be Afraid Of
It is wise, therefore, to obtain health insurance for your kid. It is not something to be done only when you have a hereditary medical condition and you are afraid you may have passed it to your kid. There are affordable Child Plans in the market and with good research you should be able to find one with a good coverage as well. Otherwise, you may also consider adding on your child as a rider to your own health insurance. All it will do is to raise your premium a little.
Many people consider that finding health insurance are for those who fall ill often and those who do risk filled jobs. However, the truth lies in the way when sudden blow of health hazard occupies one of our family members leading to consecutive problems in economy and normal life. Having a Healthinsurance is a must.
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Child insurance policies presently are more than protecting your children from uncertainties; they now play a crucial role in doing systematic financial planning for your kids. The added benefit of child insurance plans is that of assured returns during the maturity period which even the long term market investments won't guarantee you. A child life insurance can prove to be your solid investment that will let you reap the benefits at the right time.
There are wide ranges of child plans currently available amongst which you can choose the one that suits your requirements in the best possible way. For instance if you are looking towards savings for your child's college education which generally begins between the age of 18-21 years, then you can opt for a child education plan. By paying monthly premiums you can start getting prepared for the time when your child wants to choose his career path. Funding education of children is not easy in the current scenario wherein the fee structures are ever expanding and the specialized courses come with a premium price tag. Education is the right of every person and you too would want to give the best of it to your child. You can be free from such worries by opting for a child life insurance which on one side covers them against the risks and uncertainties and on the other hand is helping you build up a lump sum amount for funding their education.
Marrying children is also a responsibility of every parent. The expenses involved in Indian marriages are huge and not all can afford to make arrangements for the funds within a short time span. To take away the worries of such a dilemma there is children life insurance policy; you can begin to invest in such a plan right from the arrival of new member in your family and when the maturity period arrives use the funds in the best possible manner or your child.
Depending on a child plan for a safe and financially secure future is the right thing to do. The only thing you need to keep in mind is to choose your insurance provider wisely. Every Child plans comes with dual benefits and making the most of it is the right of every policy buyer. With easy premium payment options, guaranteed returns, claims in case of emergency situations etc, you can be assured this investment option is the best your child can ever get.
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