Children are the main reason for a parent’s existence and hence, every parents work hard to provide the best possible foundation to their children. They struggle continuously to give good childcare, schooling and higher education to make sure that the child eventually becomes a responsible member of the society.
Fulfilling these dreams which parents have for their children requires high appreciation of the expenses involved and start working out on a financial plan as early as possible. Today, the cost of education is increasing faster as compared to the inflation rate.
But, how are parents managing these costs? How they are saving for their child’s future? Generally, parents delay financial planning to a later stage and invest for short-term periods. Due to poor long-term planning, parents sacrifice other important investment goals, including retirement planning. Hence, start working on your financial planning early and follow a disciplined approach to saving for the long-term.
Buying online child insurance helps parents to fulfill the long-term requirements of a child and parent both. If parents start investing in it early, then the policy encourages long-term disciplined saving. Thanks to its unique features! It is true that parents often fail to consider the consequences of their demise.
Child insurance India ensures a continuous cycle of finance creation in case of parent’s sudden demise. In some cases, besides providing lump-sum money on the policyholder’s death, the insurer continues investing money on behalf of the insured person because of ‘waiver of premium benefit’, thereby protecting the child’s future and meeting the fulfilling the parent’s dreams.
Online child insurance policies are available at affordable rates and are based on individual risk level. Parents can select between a range of unit-linked insurance plans and traditional policies. Usually, traditional child insurance offers guaranteed maturity returns as well as invest money in risk-free government securities and high-rated corporate bonds.
On the other hand, ULIPs invest in both equity and debt markets. It is advisable that customers with low risk appetite should opt for traditional policies because of their guaranteed returns.