As parents, securing your child’s overall development is your priority. Thus, you leave no stone unturned in making sure that your child receives the best possible upbringing, education, and a safe and secure future. For this, you need to have a well-laid out financial plan in place so that money is the last thing on your child’s mind while they pursue their career ambitions. Having the right child plan in place will help you financially safeguard your child’s long-term development against the spiraling cost of education and inflation. Here is how you must choose a child insurance plan –
First, you must decide what will be the sufficient cover amount under the insurance plan and the premium payable against the coverage. Before making an application, you can compare different child insurance plans based on the offered Sum Assured and the premium payable using a child insurance calculator.
Second, you should choose the type of child insurance policy that best suits your investment habits and goals. Primarily, child insurance plans are categorized into child ULIPS and Child endowment plans. While in ULIP, you have the flexibility to decide the investment instruments in which to put your savings, it is the insurance company that decides to invest in debt instruments on your behalf under endowment plans.
Third, you must determine whether you want to pay the premiums as a lump sum or go for regular payments. Once you have locked-in on the payment frequency, you are all set to initiate a child insurance policy cover for your child.
It is advisable here that you look for chid insurance plans that offer premium waiver benefit if anything happens to you. In any such unfortunate events, it is the insurance company that will waive off any future premium payments, while the protection of the child insurance plan continues until maturity. Furthermore, the entire insurance coverage amount will be given to your child upon the maturity of the plan. Even if you outlive the policy term, you will receive the full coverage amount as maturity benefit.
Canara HSBC Oriental Bank of Commerce offers a wide range of child plans that offer personalized insurance coverage along with ample investment opportunities to help you maximize your savings for the future.