Planning finances for the future requires proactive approaches to be followed, especially when you’re a parent or a parent-to-be. While having a child is one of the most special things in one’s life, it brings forth several financially tricky situations. Nevertheless, there have been introduced several insurance plans that also help you save for your children.
Today, let’s explore how child insurance plans secure their future alongside knowing which insurance plans can be used alternatively for the same.
Why Investing in Child Insurance Plans is Important?
A child plan goes beyond just providing life cover. It brings several advantages to the table, which are essential to ensure financial security for them. The insurance benefits are generally reserved for unfortunate cases such as untimely demise or a critical illness basis of the policy’s term.
While offering coverage, this sum can help people fulfill their aspirations, pursue higher education, fund their marriage, etc. Most importantly, having invested in such plans offers peace of mind, which is one of the most essential things in today’s world.
Which is the Best Children Policy?
There are many insurance policies that may fill the position of a child plan. Here are some of the policies given below to help you select a suitable one:
- Child Insurance Plan: This is the basic child plan that insurance providers offer you to secure financial security for your children. It reduces your responsibilities by providing peace of mind and even combines long-term investment with the insurance component. They are, again of three types, explained below:-
- Child Endowment Plan: These plans offer maturity benefits, which act as a savings component along with life cover. You can expect a pool of funds to be saved at the policy’s successful completion. You also get to avail of the tax deductions on maturity benefits and premiums paid.
- Child Savings Plan: This is another child insurance policy that’s worth considering your investment. It functions similarly to ULIPs but with a small twist as an investor. You can switch between funds to be invested in based on your financial position and risk appetite.
- Child Money-back Plan: Child insurance plans are of many types, and opting for a money-back plan for your child’s insurance can bring you a wealth of benefits. It offers a bonus sum on successful completion of the policy’s term. Apart from this benefit, you may avail of the available tax deductions as well.
- ULIP (Unit-linked Insurance Plan): A popular insurance investment plant that may serve as one of the best child insurance plans is ULIP. It offers you a three-fold benefit where you’ll get insurance benefits, tax deductions, and market investment returns. In this plan, you can choose and switch between a group of market funds, such as bonds, stocks, shares, etc.
- Term Insurance with Return of Premium: Many insurance plans offer perks based on their terms. In case of a return of premium waiver, you can get all the premiums paid for your term plan back on successful policy completion. With this plan in effect, you can get coverage, return of premium, and tax deductions on both of them.
Have You Invested in the Best Children Policy Yet?
Different child plans offer different benefits. Some may have insurance and tax benefits only, while a few, like ULIPs, may offer market returns, or endowment plans may offer maturity benefits. In addition to understanding which term plan suits your requirements the best, it is essential to find a top insurance-providing company.
What positions any insurer at the top, like Canara HSBC Life Insurance, is their flexibility, top claim settlement ratio, and variety of plans offered. Their online range of child plans includes iSelect Guaranteed Future Plus saving plan, Young Term Plan, etc., that you can explore on their official website.
Go through their plans to secure a financially secure future for your children today!
Lynn Martelli is an editor at Readability. She received her MFA in Creative Writing from Antioch University and has worked as an editor for over 10 years. Lynn has edited a wide variety of books, including fiction, non-fiction, memoirs, and more. In her free time, Lynn enjoys reading, writing, and spending time with her family and friends.
