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Securing a child's future is every parent's dream. Whether it's about education or marriage, we all look for a good investment plan which will provide fine returns when required. To give their child, the best is every parent’s wish. And to fulfill that wish, they look for all the possible ways. Now, let us tell you there is a way to make your child's future secure. And for these requirements, a child insurance plan is exactly what you need. The plan offers an avenue of investment for your child's future and also guarantees the promised corpus even if the parent dies at an early age.
A ULIP plan is a market-linked product that provides the advantage of investment and insurance under a comprehensive plan. A plan linked to the capital market, ULIP, offers flexibility to invest in equity-based or debt in the risk appetite of the investor. Hence, ULIP can be a useful plan to save your child’s future.
The key feature of a children’s ULIP plan is that it gives individuals a three-pronged benefit, together with insurance coverage, participation in the equity market, disciplined investments. Three benefits mean that the sum assured is given to the nominee child on the sudden demise of the insured parent. The future premium is waived off, and the maturity value would be paid at the time of maturity, making sure that your child’s future dreams are fulfilled.
Now let’s head towards the features of a child insurance plan:
Now that you are well-aware of the features of a child insurance plan let us tell you about its benefits. Here, have a look at the following:
For some of you wondering how to get the best child insurance plan, you must give a read to the following points:
Start Early - This is the most common as well as an effective step. Starting early will help you build a bigger corpus for your child’s future. Most of the policies start providing maturity benefits by the time the child reaches the age of 18 years. For instance, starting a child plan when the child is one year old is a far better option than investing when the child is ten years old. In the second case, the maturity payout will be delayed by the time your child is ready for college, and then you may have to take an education loan.
Economic Variables - A child insurance plan is a scheme with a long investment vision. You need to consider multiple economic variables like the rising cost of living and education, inflation, etc. This will help you analyze the actual cost of your child’s future requirements. Also, it can change drastically if the child wishes to study abroad where the cost of education is twice as compared to India.
Terms and Conditions - You must read and understand every aspect of the child plan mentioned in the terms and conditions and policy documents very carefully. This will help you understand how a particular plan works and will give you a deep insight into the benefits and returns associated with the policy. You can also compare online the various terms and conditions of different policies so that you invest in the best policy.
Premium Waiver Benefit – You can avail of it as a rider option as well. Most of the insurers waive off any future premiums in case of the death of the parent during the premium paying tenure. This does not have an impact on the policy as the child will get full benefits on maturity.
ULIPs can be your savior in terms of securing your child's future. Buying a child insurance policy is as important as taking the best care of your little one. We at Coverfox advise you to compare and then invest. For more details about the child insurance plans, you can also visit www.coverfox.com. We ensure to provide you the best experience.