One of the most practical ways to secure the future of a child financially is by opting for a child insurance plan. In this regard, planning is key and there is no such thing as going overboard. Considering the increasing costs of education, parents do not want to compromise on the dreams of their child (or children). They will leave no stone unturned to support them in all ways and help them become who they want to be. Saving and investing in the right financial instruments are a significant part of this planning.
As financial security of a child has become a necessity for all parents or even would be parents, several agencies have come up with child insurance plans. With so many options to choose from, a parent might find it difficult to make a choice.
So, to help them find the most suitable plan, listed below are the things parents need to do:
Starting early gives parents the advantage of time which is key when building a corpus. Even when the amount to be invested in the insurance plan is not too high, with a longer tenure, the returns tend to be higher.
After factoring in inflation and the tentative college fees that would be applicable for the child, parents need to invest accordingly. Here, they should consider the maximum amount that could be required so as to choose the insurance scheme accordingly.
Here, we are referring to the fact that the funds saved/invested for a child’s education involves projecting future expenses and is subject to the institution and profession chosen by the child. So, parents need to set realistic financial goals so as to provide coverage for the educational expenses, irrespective of the stream chosen eventually.
Also Read:- 4 Things to Consider Before Taking a Child Insurance Plan
Lastly, parents should take a more comprehensive look at the needs of a child that can go much beyond the scope of a conventional life insurance plan. Hence, more inclusive, customized insurance plans are what one should consider investing in.
Here, we have covered what parents should do- to know about what they should not do with regard to choosing an investment plan, the resource given below will be of help: The Do’s and Don’ts of Children Insurance Plans
Alisha Antil is your best financial helper for insurance. She has a vast experience in finance and insurance and provide to you the expert advise in insuring your property and health. She has in depth knowledge and has written more than 1200 blogs on topics related home and car insurance. She also provide you with knowledge about home improvement and cooking.