In today’s Indian society, as a woman, you have multiple roles to play – you are a homemaker as well as a working professional. You are a caretaker for your children as well as your in-laws, spouse, and even your own parents. Indeed there are many obligations in the professional and personal life of a working mother in India.
As a mother, the biggest responsibility you have is towards your children’s overall wellbeing and education. Hence, like your husband, you too need a child insurance plan for your life cover and to meet your children’s aspirations.
What are your Child’s Important Future Goals?
Your little whiz kids must be having certain dreams, such as becoming a doctor or a lawyer. These aspirations that define the future of your child, need strong financial support and certainty. Here are some of the most crucial life goals of children that every parent has to fulfil:
It lays the foundation of your child’s career. Educational costs rise exponentially right from the kindergarten stage, till your child reaches college. You need sound financial planning to cope with the ever-increasing educational costs.
Another important life goal is your son’s/daughter’s marriage. There are innumerable costs involved in weddings, including catering expenses, event management, and so on. Pre-planning your finances can help you deal with this important stage very smoothly.
After your ward has successfully completed his/her education, he might be having an entrepreneurial goal. Since every business venture requires some initial capital, financial planning plays a crucial role here as well.
How Important is a Child Insurance Plan for a Mother?
There is no doubt that in today’s era, women equally need sound financial planning as their male spouses. With the booming inflation, the financial challenges of a working woman start right from the time she becomes a mother.
Usually, before motherhood, women in India require finances just for their personal needs. However, as they become mothers, they face a big responsibility for their families. They need to look after their new-borns along with their work. As the child grows up, childcare and educational costs rise rapidly.
Whenever the question arises to your mind, “Why should I buy a child insurance plan?”, you must consider the following reasons:
As a young professional now becoming a mother, you can easily understand that in today’s inflation, sustaining a family and educating your child is not all easy. In the near future, education will become even more costly. Hence, you need to buy child insurance as early as possible.
2. Share the Load
Moreover, today’s booming inflation does not allow a single spouse to manage all the finances. You can share the financial burden with your husband. If he is having a term life cover or medical insurance, you can arrange for your children’s education with a child insurance plan.
3. Shared Responsibility
Even if you are a homemaker, your responsibility and role as a parent are no less. When it comes to financial planning, both you and your husband have an equal role in ensuring a bright future for your children. Getting a child insurance plan will make sure that your child receives enough financial support as and when he proceeds in his education.
4. Improved Safety for Your Child
A good Child Insurance plan, such as an endowment plan will provide a safety net for your spouse as well as your children. Besides, it will ensure the availability of funds for the fulfilment of your child’s goals.
5. Borrow Against the Policy
Moreover, child insurance can help you take a student loan for your child’s higher studies. So you need not mortgage your house or take a loan from your relative for meeting the higher education expenses of your child.
In this way, a child insurance plan can help you become a financially independent woman of today’s era.
How to Buy the Best Child Plan?
If you want to buy a child insurance plan that best suits the long-term goals of your child, you need to do good financial planning. You need a child plan that can help you cope with the rising costs of education each year.
Here are the steps involved:
1. Evaluate Your Financial Goals
To buy the best child insurance plan, you first need to know what your long-term goals are. Accordingly, you can figure out the time and money involved in fulfilling each goal. In this way, you can easily buy a child plan to arrange the funds for each of your child’s goals.
2. Judge your Risk Appetite
Your age and other personal factors like your income decide how much risk you can take. If you have a high-risk appetite, you can go for a monthly investment scheme offering you higher growth, such as a ULIP. If your concern is to save more, you may opt for the Guaranteed Savings Plan. It offers you more financial security with adequate tax-free maturity value.
3. Decide Investment Tenure
Depending upon the maximum time you need to fulfil the long-term goals of your child, you can set a convenient investment tenor. Accordingly, you can select the most appropriate child plan. Pre-determining your investment tenure makes sure that the funds are available to you at the right time.
4. Check for Features and Riders
You can check for the riders like Accident benefit, and how much benefit do they provide. Accordingly, you may add them to your plan. Canara HSBC Oriental Bank of Commerce Life Insurance Plan offers Critical illness comes as a default component of the life cover.
5. Review & Compare
It is advised to refer to various plans and compare their features and benefits. You may use a savings calculator to figure out the actual coverage and the amount premium payable in that regular income plan.
This way, you can easily buy a child insurance plan that is most appropriate for your child’s long-term goals.