In today’s time, education has become very expensive, so if you want to give better education to your child, then planning in advance is very important for that.
Child Insurance Plan: If you want to take a child insurance plan for the safe future of your child, then you need to keep some things in mind. Many parents invest in child insurance or child investment plans to provide for their child’s schooling, good higher education. In today’s time, education has become very expensive. Therefore, if you want to give better education to your child, then planning in advance is very important.
You have several options while choosing a child plan. Many insurance companies have been offering child plans. However, note that some of these plans are market-linked allowing policyholders to invest in both debt and equity. There are also traditional plans which invest the premium of the investors only in debt funds.
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What is a child insurance plan?
The child plan takes care of the needs of the child even when the parents are not there. These plans offer guaranteed payouts for the child’s education and hobbies so that they can lead a better life. Child plans are known to give higher returns as compared to traditional investments like PPF or FD. However, choosing a better child plan is not easy.
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Keep these things in mind before taking a child plan
1. By starting this type of investment early, the future of the child is secured. These schemes are usually invested for a long term, which helps the investors to build their wealth over time. Hence, according to experts, choose a plan that encourages long-term investment.
2. Choose a plan that best suits your child’s needs and goals, as every child’s goal is unique. Thus, experts say that you need to have the right financial planning in place to help fulfill your child’s dreams.
3. For high-risk investors, equity-linked plans with a time frame of at least 10 years or more are the right option. This way your investment will increase, as long term stocks give good returns in the long run. Also, make sure that the child plan has a balanced mix of both debt and growth funds with risk cover.
4. For investors who take less risk, an endowment plan can be chosen. If you do not like to take risk on your investments, endowment plans will not only provide you with adequate cover but will also ensure protection against volatile market conditions.