Child insurance plan – Top 3 things to consider

We all love success stories. They are born from the seeds of small trees. Then over the years of care, they leave a trail of achievements, memories, prized milestones and eventually become a source of inspiration for the generations to come. A secure life needs a child's ambition easier and towards a crystal clear goal without hindrances. 

Let's go back to the day when your child was born. You probably had and still do have big dreams for the child. Let us guess that you wished that your child does better than you in every possible way. Then you are a parent who is thinking the right things such as financial planning for your child’s education. Yes indeed, what better gift than education for your child. Unfortunately, then comes some challenges, the costs of higher education in the near future will go up by 10 percent every year, which means that the cost of education shall double every 7 years. It will be four times of what it is today in 15 years. Do not let inflation bog you down. To ensure that your child does better than you, you need stay ahead of inflation by implementing simple practices and investing in smart financial instruments. 

Secure a steady habit of starting early, saving regularly for the long term. So you can benefit from growth of returns over the years.How do you do this? One of the best ways to financially secure your child is to invest in children's plans from a life insurance company that are designed to guarantee your child a steady future.

Here are 3 things you can do

• The plan which allows you to save over the long term in a disciplined manner. The earlier you start saving the better

• Secondly invest according to your risk appetite. Go easy and there is no pressure. If you can take a higher risk for higher returns, then opt for a unit linked insurance based child plan. However, if you feel that you do not have the appetite for market uncertainties look for a solution that offers short returns on maturity. Remember if you stay invested for a longer term, you will benefit from the power of compounding.

• Thirdly, do look for premium funding benefits offered by life insurance companies. You need a solution that can guarantee that your child’s dreams are not interrupted in your absence. Under this benefit, in case of an unfortunate event, a lumpsum amount is paid to the family to take care of immediate education expenses. In addition, all future premium amounts are funded by the life insurance company. This way the policy does not stop and your child receives a lump sum amount on policy maturity to meet higher education milestones.

So, proud parents, plan today and get your child high up to the wall of fame.