Checklist to Fully Insure Your Child with Child Insurance
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Becoming a parent is a magical experience. But once your little one is born, you start to worry about how you can continue to protect and provide for them. Every parent will do whatever they possibly can to make their child’s dreams come true. To help you plan for the future, here’s a look at some child investment plans and child insurance policies you need to purchase to safeguard your child’s future!
1. Health Insurance
You may not want to think about it, but an illness or accident could leave your child requiring urgent medical attention. Given the rate of medical inflation, a single night’s stay in hospital could set you back quite a bit. We’re sure you don’t want to spare any expense when it comes to your child’s treatment either. That’s why it’s crucial to purchase a health insurance policy for your child. You can opt to add your little one to your family floater plan or get them an individual policy if you like. The health plan will help look after the medical and hospital bills so that you can focus on looking after your child.
2. Boost Your Life Plan
You may already have a whole life insurance plan to protect your spouse financially. Once you welcome your little bundle of joy, consider revising your policy to boost your sum insured amount. Now that you have two or more people depending on you, you must ensure that they are financially secure. If something were to happen to you, the payout from the policy will provide them with some semblance of normalcy at a difficult time. Next time your plan is up for renewal, speak to your insurance provider and consider your options to get more coverage.
3. Child Savings Plan
Child investment plans provide your kid with the financial security they need to reach for the stars. Also known as child insurance plans, these policies help you invest and build up a corpus for your child’s future. Depending on the policy term you choose, they can use the money to fund their higher education, marriage or kick-start their business. Almost every child policy in India comes with a premium waiver benefit. In case you’re no longer around to pay premiums, the insurer will take on your role. They will continue to pay the premiums on your behalf to provide your kid with the maturity benefit when they need it the most. A child insurance plan is one of the safest ways you can build funds for the future.
Evaluate Your Finances First
Before you purchase a child insurance plan or child investment plan, you need to take stock of your finances. Consider the premiums required for the insurance and investment policies. Speak to a trusted financial advisor and figure out what you can afford for your child. Remember, it’s okay to start small and build your investments later on. Ideally, start by purchasing a health policy and child insurance plan. You can always boost your life cover later on. Or, if you do not have any life insurance, get yourself cover under a term plan instead. These policies are more affordable and can be converted into whole-life policies later on.
How Do Child Investments PlansHelp My Child?
Children’s plans are engineered to provide for your child’s every future need. Your child will receive the corpus you built up over time when they need it the most. When you start investing, you decide the term of the policy. So, you get to pick how old your child will be when they receive the payout. If you’re saving up to pay for their higher education, the policy should reach maturity by the time your child completes their 17th birthday. If you’d like to use the money to gift them the wedding of their dreams, you can plan for the policy to mature by the time they reach 24. Whatever your child’s future goals, you can build up the funds to help them follow their hearts.
What’s more – the investment plan will continue even if something were to happen to you. While nothing could ever replace the gap you leave in your child’s life, the funds from the investment policy will allow your child to become an independent individual.
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