We all longing to protect our child's time to come in some way or another. We either make investments in the bank, gold or market shares and stocks. Unit Linked Insurance policy is a leading insurance policy that is endorsed by most parents. It is best to go for child insurance while your child is still young, thereby securing your child's prospect.
A child's development of knowledge in today's world is a huge expense for most families. Moreover, a growing population of students now prefer finishing their graduation or post-graduation studies away. An education out of the country would cost nearly 50 lakh to 1 crore or possibly even more. This is including the up-keep of the child, travel, and hostel expenses apart from the course fee. Thus, if parents plan at an early stage and responsibly put away a certain amount of money every month, the pressure to pay for a child's cultivation will decrease considerably.
So how does a child insurance plan work? The basic premise is to invest a little money every month or each year for a maximum term of 25 years, and in turn you are allowed to collect your money periodically in the future. Thus, you may use some part of the money for your child's studies and at a later stage, for your child's marriage.
Child plans that are ULIPs help you get maximum returns for your child. Though Unit Linked Child Insurance Plans are maligned for their unusually high-costs, they enhance benefits over the long term and one need to continue for the maximum supremacy subscribed in the plan. Thus, if you want returns with higher rate of growth and are ready to take on the bigger market risk involved, then you need to opt for Child - ULIP Plans.
So why would one ought to invest in a child insurance plan? The initial reason would in all probability be for providing for your child's education. Saving for child insurance is also considered to be an important exercise in economic planning. It helps you organize your savings in addition to devising for your own life insurance.
The following are the factors to bear in mind while planning:
. Time frame for building a corpus.
. Approximate amount to build the corpus.
. Age at which the fund would possibly be required.
. Investment avenues to be considered.
A child's development of knowledge in today's world is a huge expense for most families. Moreover, a growing population of students now prefer finishing their graduation or post-graduation studies away. An education out of the country would cost nearly 50 lakh to 1 crore or possibly even more. This is including the up-keep of the child, travel, and hostel expenses apart from the course fee. Thus, if parents plan at an early stage and responsibly put away a certain amount of money every month, the pressure to pay for a child's cultivation will decrease considerably.
So how does a child insurance plan work? The basic premise is to invest a little money every month or each year for a maximum term of 25 years, and in turn you are allowed to collect your money periodically in the future. Thus, you may use some part of the money for your child's studies and at a later stage, for your child's marriage.
Child plans that are ULIPs help you get maximum returns for your child. Though Unit Linked Child Insurance Plans are maligned for their unusually high-costs, they enhance benefits over the long term and one need to continue for the maximum supremacy subscribed in the plan. Thus, if you want returns with higher rate of growth and are ready to take on the bigger market risk involved, then you need to opt for Child - ULIP Plans.
So why would one ought to invest in a child insurance plan? The initial reason would in all probability be for providing for your child's education. Saving for child insurance is also considered to be an important exercise in economic planning. It helps you organize your savings in addition to devising for your own life insurance.
The following are the factors to bear in mind while planning:
. Time frame for building a corpus.
. Approximate amount to build the corpus.
. Age at which the fund would possibly be required.
. Investment avenues to be considered.
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