How to create a grand saving for child’s future?

In this competitive world every one wishes to create sufficient saving for child and ensure that their future is safeguarded. Once you figure out your child’s interest, it becomes important that you keep nurturing his or her talent from time to time and develop a glittering gem of your child’s career. While markets are filled with loads of products for child safety, educational plans etc. one good option that runs exceptionally well in the market is child insurance plans. Today, majority of people have relatively fixed sources of income and financial planning for children’s benefits become an important part of the family’s budget.

Child insurances policies in India are considered as excellent long-term instruments to protect your child’s future. These insurance products invest systematically over the long-term period and have ability to manage inflation. Not only it ensures a sufficient cover for your child in case of any unforeseen event but also gives sufficient returns to let them build their career path. The security factor available in these policies makes them ideal “saving for child” policies against any kind of emergencies. The article guides you on simple tips to select the best child policy:

Plan early

Most insurance companies in India prepare plans with certain maturity benefits that often coincide with the child attaining 18 years in age or timely release of payments at specific life stages from 18 years onwards. The long term horizon helps you to invest systematically and supports you to develop a strong financial corpus. Therefore, set your goals and take help of a financial planner to select a policy which motivates such long term behavior.

Premium waver benefit

Most child insurance policies give premium waiver benefit either as a vital feature or an option in the basic policy. This is one of the critical features in these policies. In case of parent’s demise, the premium waiver benefit makes sure that future premium payments are waived off and insurers continue to fund the policy till its maturity date.

Enjoy Mix benefits

While creating desired saving for child, invest in plans which gives you mix benefits of growth and capital protection. Equities offer good returns over the long run. It is advisable to prefer a plan that gives systematic transfer opportunities because it makes sure about investment protection.

Besides, child insurance plans are exempted from tax under section 10(10D) of the Income Tax Act, 1961 and premium paid are eligible for deduction from taxable income under section 80C.

Understand and evaluate the product cost

There are certain charges associated with your product plan which buyers have to pay to the insurance companies as fees or charges incurred. These charges are mentioned in the product brochure clearly. It is better to compare the plans available in the insurance market in terms of flexibility, charges, insurer’s financial stability and past record, claim settlement ratio etc. Buying child insurance plan is a significant move to build the desired savings for child. So, do thorough research and contact insurance professional for help.

[Source: https://tackk.com/zewvf6]