Education costs are significantly rising overtime. Not to mention, but these rising costs have proven to be one of the biggest problems for Indian parents. Parents without adequate income fail to provide potential education to the students. Successful parenting is hard, but then it can prove to be extremely beneficial once you have the resources. As a result, to ease the problems of parents, child insurance plans have been brought into effect. Several insurance companies have come about introducing child plans for convenience.
The types of child insurance plans
Different insurance companies provide different children plan. Each of these plans has specific characteristics and benefits to suit your requirements. Some of the prominent types of child insurance plans include the following
- Unit-linked investment
In this case, the investment is divided between debt and equity. In the case of high-risk equity products, the price would generally be higher. However, you will eventually have a high return as well. This will be beneficial for your child’s future.
- Regular premium insurance plans
Parents often keep a check on what benefits they can get from the child insurance benefits. The regular premium insurance plans provide a clear facility of paying the premiums annually, quarterly, and monthly. Each of these cycles is beneficial for the customers as per the schedule.
- Child endowment plans
The endowment plans are usually the low-risks ones. The investment is distributed among different debt products based on the company. However, with this plan, you would surely get the return even though it is not big.
- Single-Premium Insurance Plans
Most of the parents prefer to opt for an annual payment rather than monthly. Such a mode of the premium is beneficial for the regular payment cycle compared to the benefits of the parents.
Tips to Select Child Insurance Plan
Choosing child insurance plans is one of the most important things. Hence you must research thoroughly. Some of the prominent tips to choose the child insurance plans include the following
- Plan the stages
Based on your child’s growth, you should prefer preparing a plan and strategy for your business. This will help you cover the major financial decision.
- Paying frequencies
Once you have a plan, you need to ensure that you pay the premium on time. The paying frequency also depends on how many times you want to pay for the maturity cover. You should choose the amount based on your financial capabilities.
- Begin early
Whenever you are considering to get child insurance plans, you should prefer starting early. Starting early will ensure that your child will get money by the legal age.
Best Child Insurance Plan for 2019
If you are looking out for a potential child plan for your child, you should prefer checking some of this plan.
ICICI Pru SmartKid
ICICI Pru Smart Life provides this unit-linked insurance plan. It will help you save money for your child’s future. Some of the prominent features include
- Free switching
- Choose between 4 funds
- Online purchase
The ICICI Pru SmartKid will be beneficial for the kid in the near future by providing all means for education and future uses. The term usually varies from 15 years to 25 years. The minimum sum insured for the child is Rs1,00,000. The child may be of 0 years to 15 years for the policyholder to enrol in the plan.