Children are the main reason behind parent’s
existence. Parents always want to give the best possible foundation to their
children and work hard to offer for child care, education and imparting the
correct values to make sure that children become responsible as well as
productive eventually.
To fulfill
this parent’s dream, child requires appreciation of the expenses involved and
an effective financial plan which is started as early as possible. Education is
the most crucial expenses which parents need to plan for.
We all know that the education cost is growing more than
the rate of inflation for the past 7 years. Hence, parents need to be careful
while handling these expenses. Considering the long-term goals of their
children, ensure that you invest in the right financial tool.
Generally, it is observed that parents delay financial
planning to a later stage and prefer to invest for short-term periods. There
are various instances where parents sacrifice other vital investment goals like
retirement planning because of weak long-term planning. Therefore, industry
experts suggest parents to start early and follow a disciplined approach to
saving for the long term.
Buying online child insurance is the best decision to
fulfill the long-term requirements of a parent and has an edge over other
financial products, owing to a wide range of benefits it gives. Child
plans allow parents to start investing early especially after being
blessed with a child. It motivates disciplined long-term savings.
It is true that parents often fail to work for the
consequences of demise of the provider. The major benefit of child insurance
online is that it generates a continuous cycle of fund creation in case of
sudden demise of the parent.
On policyholder’s death, the insurer continues investing
money on behalf of the insured person because of the waiver of premium benefit.
This feature helps to protect the child’s future and also help a child in
meeting the parent’s dreams.
Child insurance India is affordable and based on
individual risk appetites. Customers can select between unit linked and
traditional insurance plans. A unit linked child insurance policy allows
investment in both equity and debt markets.
Traditional child insurance offers guaranteed maturity benefits
and invest funds mainly in self-instruments and risk-free government
securities. Those who have low-risk appetite and not literate financially can
opt for traditional policies. Customers who are ready to take the risk related
with these equity markets can buy unit linked plans.
[Sourcce: http://blog.policyboss.com/insurance/child-insurance-plans/]
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