subject: Choosing The Best Child Plans In India [print this page] Every parent wants the best things for their children. The best education, the best healthcare and all the comforts of life for children is the ultimate priority of all the parents. Insufficient funds can be the biggest hurdle in the way of your childrens success and their pursuit of better opportunities. The best child plan can definitely help you out in such difficult times. A child plan or child insurance policy is the best choice for the parents who believe in early financial planning for their childs future. The child insurance plan is an umbrella term for child education plan and child life insurance. Both these plans play a key role when it comes to planning your kids future.
How to choose the best child plan
First of all, understand the fact that there is no such thing as the best insurance plan. Considering the amount of child plans provided by various insurance companies in India, all that you can do is to choose the best suitable plan for your children. There are a few basic steps involved when it comes to choosing the best plan for your children.
Requirements
There are two basic types of child plans, namely, child education and child health. Determine the insurance needs of your children and plan accordingly. Check if you want to cover your childs life or make attractive investments for their career.
Life insurance: Similar to adult life insurance, these plans provide life coverage in exchange of regular premiums. There are two types of this insurance plan - whole life and term life. Term insurance plans are useful to defray various expenses made during a chronic illness of the children.
Child education: These plans help you build a bright career path for your children. The rising educational expenses and high inflation rates dont assure any guarantee when it comes to your childrens career. Having an education plan saves you from the trouble of last minute expenses for school fees, abroad studies and other expenses like transport and study material costs.
Types
When it comes to choosing the best Child Insurance plans, you also need to understand the nature of the policies you are choosing. There are two types of child plans, namely, child endowment plans and child ULIPs or unit-linked insurance plan.
Endowment: These plans provide dual coverage as they provide attractive avenues for investment and protection. You can choose from the participating or non-participating endowment policies. Depending on your selection, you get a guaranteed or partially-guaranteed child insurance.
ULIPs: These are the best child plans for those who want flexible insurance policies. With ULIPs, you get flexibility in terms of premiums, interest rate, sum assured depending on the improvement of your own income. You also get to choose the most effective fund with a good track record.
Steps
Here are the tips for choosing the best child insurance plan:
Find answers to all your questions and clear all the doubts about child plans.
Determine whether you want a Life Insurance or an education plan for your children.
Determine whether you want endowment plans or ULIPs.
Get quotes and all the requisite information of child plans from various reliable insurers.
Compare the available options and invest in a plan that you feel is the best for the childs future.
