Gift Your Child a Secured Future in this New Year- Child Plans

Ensuring a promising future is the best gift you could give your child. When you become a parent, you should begin planning for your child's future by investing in educational and health plans. It's essential to consider factors like premium rate, inflation rate, education and healthcare costs before deciding to purchase health insurance or a child education plan. A child plan will assist you in saving for the future, even in the face of growing inflation, to ensure that you are ready for future financial requirements when they arise.

Benefits of a Child Plan

A child plan offers assured returns and provides life insurance coverage to your existing policy. These are merely a few characteristics of excellent child plans. Let's examine some more benefits of child plans and how you may utilize them to safeguard your child's future. 

• School fees 

Due to the superior facilities and amenities, they offer students, top schools typically have more expensive fees. The expense of schooling is already high, and it is anticipated to rise much further. A child plan can assist you in saving for it and paying the costs when they are due.  

• Support for Higher Education 

The optimal time for your child plan to mature and finish its term is when your child finishes school and is prepared to pursue higher education. With the one-time payment of the money assured under your policy and any bonuses (if any) the plan may have collected from the insurance company throughout the policy, you will receive the endowment advantages associated with the plan. 

• Overcoming Cost Inflation in Lifestyle and Education 

You must remember that inflation is real if your child needs to relocate abroad or simply to a new city for their education. The sum assured must be higher than India's inflation rate. Generally, The norm is to make investments so that your child's plan's sum assured is at least 10 times your present yearly salary. You can do this to build up your savings and prepare for the cost of your child's education. 

• Support your child's interests and aspirations. 

Aside from educational objectives, you as a parent, would undoubtedly want to do everything in your power to support your child in pursuing their aspirations and interests. Your child's interests, whether they involve starting their own business or mastering a new skill, can be supported by using the money you may have saved by the time of college admissions and higher education studies. 

• Wedding expenses 

Most kids are aware of the financial burden of weddings, and they either budget for their nuptials or, at the very least, assist their parents by putting some of their income into the wedding expenses. Whatever the arrangement, most parents will want to plan their children's weddings and carry out the costs themselves. 

• Protect your child's future. 

You can never predict which day will be your last in life. As sad as it sounds, there is no guarantee that you will be present to see your child's life's significant moments. Even though that sounds depressing, you wouldn't want your child to miss out on these moments just because you are not present. A child plan honours your wishes and enables you to provide financial security for your children's lives so they can enjoy all these memorable moments in life even if you're not there.

Best Child Plans

A child plan will assist you in saving for the future, even against growing inflation. It ensures that you are prepared for expenses in the future. Below are some of the top child plans to consider in 2023. 

• Aditya Birla Sun Life Vision Star Plan 

Vision Star is one of Birla Sun Life's child investment plans; it is a conventional money-back plan that provides regular payments throughout the policy term. The minimum and maximum admission ages for parents are 18 and 55, respectively. 75 is the maturity age. The insured has two alternatives for periodic payments or survival benefits: payouts after five years, which are paid every two years, and payouts after five years, which are paid every year. The policyholder also receives terminal and reversionary bonuses upon policy maturity. 

• Aegon Life Rising Star Insurance Plan 

This child insurance plan aids in your ability to save up money for your child's aspirations in the future. You also have the choice to invest in one of the Accelerator, Secure, Stable, or Debt Funds. The minimum and maximum admission ages for parents are 18 and 48, respectively. The age of maturity is 65. There are three options for premium payment frequency: monthly, half-yearly, and annually. 

• Child Advantage Plan from Bharti AXA Life 

It is a conventional child investment plan that provides endowment and money-back benefits as two ways to avail of maturity benefits. The plan has a premium benefit waiver option. In the event of your passing, the insurer keeps paying the premium to ensure your child can benefit from the coverage. The minimum enrollment age for parents is 18 years, while the maximum is 50 years in the Regular Pay option and 55 in the Limited Pay option. The maturity age for the Regular Pay option is 71 years, whereas the Limited Pay option's maturity age is 76 years. Options for policy terms can be between 11 and 21 years. There are four options for premium payment frequency: every month, every quarter, half-yearly, and yearly. 

• Canara HSBC Child Plan 

This individual-linked savings plan and life insurance from Canara HSBC provide a long-term investment alternative to help your child achieve their aspirations without worrying about money. A sum insured amount is provided on death, and the premium gets refunded if the policyholder dies or becomes disabled. You also have the choice to invest in six funds: the Debt Plus Fund, the Growth Plus Fund, the Equity II Fund, the Liquid Fund, the Balanced Plus Fund, and the India Multi-Cap Equity Fund. If you want to ensure your child's financial security in the event of our untimely passing, this plan is an excellent choice. 

• ICICI Pru Smart Kid's Regular Premium 

ICICI PruSmart Kid's is a participating endowment recurring premium plan with assured educational benefits. In the case of the death of a parent, the company provides a lump sum payment of the sum assured and will make future premium payments as well. In addition to the capacity to pay for the child's vital educational expenses, there is a safeguard against accident and disability. The income benefit rider and the accident and disability benefit rider are two extra rider benefits available with this insurance. At the end of the 15th policy year, 120% to 170% of the yearly premium is allotted to your fund value, and there is an option for partial withdrawals.

Conclusion

Making the proper investment decisions at an appropriate time is crucial when preparing to give the child a solid financial backup. Despite the availability of plenty of excellent plans for children, selecting a plan based on your requirement and compatibility is always advisable. It is also essential to deeply understand the specific plan and how it will suit your needs before you commit to it.

FAQs

• What exactly is a child's plan? 

Child plans are insurance and investment programs that assist a person in building a corpus over time (the policy term) for their children's future. These plans offer lump sum payments upon maturity that can be utilized to cover your child's wedding expenses or college fees. 

• What is child future education policy? 

Child Education Plans are insurance policies designed with the specific purpose of assisting parents or legal guardians to save and invest money for their children's future educational costs. You pay a premium sum for a set term, such as monthly, half-yearly, yearly, or single-pay, in a Child education plan. 

• Why is child future planning so important? 

A key component of ensuring your children's financial future is financial planning. It can help you be financially prepared for your children's expenses in the future and guarantee they have the resources they need to follow their aspirations. It gives them a sense of stability and security. 

• What are the advantages of making a wise child plan investment? 

Choosing the best child plan would guarantee that your child receives the funds at the times indicated in the insurance policy. It will help you as a parent to ensure that your child's future requirements are addressed and that they may live life with financial security. Investing in a considerable child plan would be a good move for any parent who wishes financial security for their kid's future. 

•  How can I select the ideal child plan? 

 Obtaining child insurance is a solid step towards your kid's future and is necessary for all parents. The benefits of the various child plans given by Indian life insurance companies vary. It is advised to compare several child insurance policies before choosing the one that best meets your requirements.