Insurance

Know What to Keep in Mind Before Buying a Child Insurance Plan

Child Insurance Plan: In the changing times, the trend of child insurance plans has increased rapidly. People are taking child insurance plans for a safe future for children. But often people make some common mistakes, due to which they have to face many difficulties. Many parents invest in child insurance or child investment plans with the intention of giving good higher education to their children, but due to some mistakes, they get low returns.

in today’s time, from school to professional degree, big funds are needed, so in such a situation, if you go 10-15 years in advance with the right planning, then you will be able to collect good funds.

Avoid taking too many risks: The policy holder should keep in mind how much risk he is capable of taking. the greater the risk, the higher the return – these are right, but without understanding the plan, you should understand your risk-taking ability before putting in all your hard-earned money. experts point out that, for long-term investments, one should invest only and move forward with a medium level of risk.

Include the rate of inflation in the count: It makes sense to add the inflation rate to the expenses that will be spent 5 or 10 years from today for the education of your children. suppose, in today’s time, the fee of a course is rs 10 lakh, but after the coming 10 or 15 years, the price of this 10 lakh will increase at the rate of 5% annually, then according to this, the cost of your child’s 10 lakh today will be 21.07 lakh at the time of his studies. therefore, parents should pay special attention to the inflation rate at the time of investment.

Parents should take their insurance: Before taking your child insurance plan. if you die, the death benefit from the insurance will provide financial assistance to the entire family. taking your insurance helps your family a lot in times of crisis. remember, by buying insurance for yourself, the whole family can be saved, only after that should you invest in the child insurance plan.

keep in mind: The policy term it is very important to match your child’s future needs and the duration of the policy term. if you have to raise funds for higher education after 15 years, then it will not be beneficial to choose a policy term that is less or more than 15 years.

Do not delay: Investments delaying investments is the most common mistake. the more you delay in investing, the lower your return will be. as soon as the child is born, you should start investing for him. suppose, if you invest rs 10,000 every month from the child’s birth itself and you get a return of 15 per cent, then by the time your child is 20 years old, he will easily get a fund of rs 1.33 crore.

admin

Get all the latest trendy, viral and quality informative content at your finger tips only in one click.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button