Wanting more from life is a quintessential chase and something that all of us have dreamed of at some point in time or another. While we all dream, achieving and living it up in another thing altogether. It takes years of painstaking efforts and a focused mind to tasting success. The one thing that proves invaluable in this quest is finance.
As one goes through various stages in life and takes on multiple responsibilities, the focus on the self becomes a lot lesser. Singlehood goes out the window and marriage happens. With the onset of the parenting stage, all other things fade into obscurity. The children quickly become the centre of the universe, and, one soon discovers, that as a parent, they’d be willing to do all that they can to offer their child a better shot at life.
With this aim in mind, one quickly realizes that a child insurance plan is what they would need, if they are to create a fail-safe for their efforts. It offers invaluable assistance, in providing for multiple needs, supporting the child in their educational pursuits, and other plans for the future.
The single biggest advantage of child insurance plans is that the offer a great deal of financial security. However, with the market crowded with insurers and a mind-boggling variety of plans on offer, choosing a particular one can be tough. This is why; it helps to have a checklist that would serve as a guide to help navigate through the insurance purchase maze.
- Since we’re talking about children here, it is crucial to map the possible capital intensive expenses that they are likely to come up against. Education, marriage, professional certification, and housing are but a few of these.
- Upon mapping, it is time to prioritize the expenses and then list them out in order of importance.
- Whilst putting a cost component against each of them is a good practice, it is also important to incorporate the price hike or inflation factor into the same.
- The amount thus computed would be the approximate value of the policy that one would need to purchase.
- Moreover, it is highly recommended that this amount be evaluated periodically, to track variations and ensure that the coverage remains well in line with the expectations.
Not all policies are the same and depending upon the returns they offer, one would need to evaluate the risks before investing. Accordingly, premiums can be calculated to make sure that you have the target amount at the time of maturity. Discussing matters with those who are well-versed in these matters and making an informed decision is highly recommended here.
When purchasing the policy, one must spend time mulling over the pros and cons of buying it under their child’s name or their own. There is no right or wrong steps to be taken here, just a matter of personal preferences.
The best time to invest in child plans is at the earliest possible. Typically speaking, the general advice happens to point towards the three-month mark, but, parents have been known to stretch this timeline. It is crucial though to not delay this indefinitely, since the sooner the coverage begins, the more secure the child’s future becomes.
At the end of the day, it is the responsibility of the parent to support and nurture the dreams of their children. Child insurance plans play their part in shaping up their future and ensuring that they turn out to be capable adults who will contribute meaningfully to the world.