Importance of Child Insurance


#1

The primary reason to have a child insurance plan is to secure the child’s future and to meet the inevitable expenses in the future. It might include the ever increasing educational expenses or even for marriage.

  • The main aspect of these plans includes in choosing the Maturity Age and Sum Assured for your child.
  • You can pay the premium either as a one time payment or at regular intervals according to the plan.
  • It is also possible to partial withdrawal, a feature that helps to save money at crucial points of your child’s life.
  • ULIPs and Endowment are the two types of child insurance plans. Choose any one scheme that will suit your child’s requirements.
  • However, investing in equity mutual funds through SIP is the most ideal way to get greater returns. Equity mutual funds will beat any other investments in the longer run.

A few leading child care schemes are Jeevan Ankur (LIC), ICICI PRU SmartKid RP, SBI Scholar II, Aviva Young Scholar Secure etc.


#2

Hi MKumar,

Since inflation keeps rising and educational and marriage expenses have risen to such an extent that it has become extremely difficult for the common man to afford either, any amount invested towards insurance for children will go a long way towards ensuring that both these costs are met.

However, child insurance is also useful to ensure that your child’s life goals are met. Also, should any unfortunate event take place to the breadwinners in a family, then insurance can help secure the child’s financial future, especially since the risks prevalent in today’s world are on the up and up.

Looking for a Mutual Fund? Click here.

Cheers,
Team BB