Know how to buy the right life insurance plan for your children
For every parent, the health and happiness of their children is most important. As parents, you take extreme care in planning your child’s future and want to give them the best. With rising tuition fees, tuition fees, next-gen career options, and more, it’s essential to plan for your child’s future well in advance. A good plan will help you cover all the important stages in your child’s life like school education, college – tuition, travel and the amp; accommodation, marriage, health care and more.
Life insurance plans that offer guaranteed returns as well as life coverage can be a good financial tool to help you prepare and make your children’s dreams come true no matter what. Life insurance companies’ guaranteed income plans give you the best of both worlds – guaranteed returns free from market volatility (in accordance with the terms of
the policy) and life coverage to ensure your child’s future in the event of an unfortunate event. So, secure your child’s dreams for life.
Also read: Happy Children’s Day 2021: The Secret To Teaching Kids To Save Money
Here’s what you should be looking at when finalizing the plan:
Choose a plan that gives you multiple benefits and options to customize the plan to suit your unique needs and budget. An ideal plan will give you multiple plan options, an option to increase life coverage, tax benefits, flexibility in payment terms – monthly or annual payment method depending on your budget, flexibility to receive payment as income regular or flat-rate and more. You can also check out plans that offer bonuses at regular intervals to maximize your investment.
Choose the payment option that’s right for you
Depending on your child’s needs, you can choose between a regular income payment or a lump sum payment. An income payment will give you money at regular intervals – this might be ideal for paying, for example – annual tuition fees. A lump sum payment results in a larger sum and a one-time payment at the end of the policy term, such a payment method could be used for child marriage and more. Some policies also give you options that give you a combination of the two.
It is also important to prepare for unfortunate circumstances. In the event of an unfortunate event, your child’s dreams should not stop. It is therefore essential to have the right life coverage.
Endorsements are optional benefits included in a life insurance policy that can provide additional financial security to the policyholder at minimal additional cost. They are attached to the basic / primary police. Depending on your specific needs and budget, you can opt for a suitable rider. One of the riders that may prove useful when planning for your child’s future is the waiver of the premium.
rider. Serious illness or disability can have a negative impact on savings and the ability to earn money. This rider, in the event of critical illness or disability, waives all future premiums. As a result, the policy continues and your financial planning for your child’s dream remains on track.
Choose your policy and payment periods
Look for a policy that gives you the flexibility to choose the length of the policy based on your child’s age. Some plans offer a choice of policy term between 10 and 25 years. You can also check the options to choose Premium payment terms – “limited pay” or “regular pay”. The limited premium payment term is suitable if you want to pay premiums only for a limited number of years. Regular compensation suitable if you want to invest and accumulate money over several years, as premiums must be paid over the life of the policy. Regular premium payment term plans may charge lower monthly or annual premiums than a limited premium payment term plan.
By choosing a great Children’s Day plan with a wide range of benefits, you will secure your children’s future and they won’t have to compromise on their dreams, no matter what.
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