Let your child feel the true happiness of secured future…

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Let your child feel the true happiness of secured
future
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• Arrival of a child in life brings lot of joy and
  enthusiasm. And when it comes to ensuring his or
  her happiness, you make sure no one messes around
  with your childs happiness not even the future
  uncertainties. You intend to give your child the
  best of everything. To achieve this goal, you
  start investing in various instruments on your
  child's behalf. Well there are many ways to
  secure your childs future such as savings,
  bonds, stock investments or mutual funds etc. but
  the one thing that insurance companies have
  introduced to capitalize the modern day parents'
  attention is Child plans. These plans have
  enticed many parents to invest on behalf of their
  children, under these dual-benefit plans.
• These plans are specific insurance plans which
  help parents save for their childs future
  expenses in a systematic manner. They are
  available in both Traditional and ULIP categories
  to suit the varied investment objective of the
  consumers. Nowadays, with the spiraling cost of
  higher education, people opt for ULIP child plans
  wherein a part of your premium goes for life
  cover and the remaining is invested in stock
  market. You can choose the type and ratio of the
  fund you wish to invest the money into such as
  Equity, debt or balance funds depending on your
  risk appetite and income.

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• In child insurance plans there are some products
  or policies with no upfront premium allocation
  charges and the total premium gets invested in
  the fund of choice, thus maximizing the scope for
  long-term returns. There is an additional
  flexibility to withdraw funds as per need via
  partial withdraw. It ensures that your childs
  educational, extra-curricular and career
  requirements are met time to time. During
  unfortunate demise of the parents during the
  policy term, these plans provide an immediate
  guaranteed lump-sum amount to the child along
  with a fixed yearly income for the remaining
  duration of the policy. All the future premiums
  due in the policy are waived of by the insurer
  under Wavier of Premium feature (Rider) and
  ensure the investment continues even in the
  absence of parents.

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• Some of the features to consider while choosing
  child plans are as follows
• Planning for your childs future should be at
  the earliest, as the needs has to be catered
  time-to-time till your child stands on his or her
  own feet and starts earning bread and butter.
  This will help to consider the time and year
  those funds will be required for various events,
  and ensure that the policys maturity amount
  suffices to meet these future needs comfortably.
• Most plans fall short because individual fail to
  consider the inflation costs in future to meet
  childs expectation. It is a crucial
  consideration while purchasing a child plan and
  deciding the amount of expenses. It is good to
  factor in a 6-7 inflation rate too.
• There should be flexibility of partial
  withdrawals in them. It helps to address any
  urgent needs without disturbing fund utilization
  and regular expenses. Besides, it also ensures
  that you have proper flexibility in switching
  funds as it allows you to leverage favorable
  market.
• Comparing investment redirection and free
  switches allowed in a year offers the freedom to
  plan finances in a more streamlined effort

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• Traditional plans focus on debt investments such
  as corporate bonds and government securities.
  While ULIPs offer dual benefit of insurance cover
  and market returns that will fulfill your child
  needs time-to-time. It is advisable to speak to a
  financial expert and then choose the fund
  allocation. Understand your risk profile as well.
  Lastly, since child plans are long-term policies
  you have ample time to experiment with equity
  funds, book profits and root them to debt
  oriented funds. So, take this suitable
  opportunity and invest in child plans now!

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