Child plans – How Does It Help Future? from mlall2054's blog

What’s the major financial responsibility of a parent nowadays? At least 2 out of 3 say, “It’s to meet the ever- increasing expenses of their child’s education.” The fact is that maximum financial planners say that as price increases, the main thing to get impacted is the education sector. Planning for the future of your child is an important step for their better and peaceful future.

Child plans are one of the tools that help parents secure the financial future of their kid. Children plans have always been common in India; nevertheless their importance has gone up lately because of increasing expenditures, mainly in education sector.

Previously, the trend was that a policy was taken in a child’s name, which was a simple money-back policy. Nowadays, parents take a term cover in their name, which would be changed if there is any loss of earnings because of the early death of any of the earning parents. Therefore, it has the twin benefits of investment as well as security.

How do these policies work?

The majority of these Child plans to meet your monetary requirements. These policies offer you the funds at pre-fixed intervals, which will assist you, meet your child’s monetary requirements at diverse milestone years.

With this, if a parent buys an income benefit rider, the child receives 10% of the amount assured till the child reaches his/her milestone years, which takes care of the income loss. Likewise, if you have a (ULIP)-linked endowment policy in your child’s name, you can extract in advance 20% of the amount assured after five years from the actual day of the plan.

Are these policies worth the money?

The insurer pays the amount assured to the nominees straightaway after the death of the parents. Moreover, the insurance company starts putting in the premium sum into the similar plan, in support of the policyholder.

This money keeps increasing and is offered to the applicant once the plan matures. Though, financial advisors have a different take. This policy is nothing then a Child plans.

A parent must choose a Child plans be it a working father or a mother, on whose salary the child’s future is reliant on. That will look after the child’s monetary requirements in case of untimely passing away of any of the working parents

So, buy a Child plans today and make your child’s future safe.

Source:[https://goo.gl/ir6F0Z]