As parents, your primary concern is your child's future and you invest most of your lives planning for it. investing for the future is almost equal to investing in the children's education and settlement. You want to ensure that they get the best education and eventually, find the right career and be financially secure. You will do everything in your power to provide for these expenses, which is why, you have invested in a child insurance plan.
Will your child plan cover inflation and rising education costs?
Your insurance policies may offer a periodic pay-out that allows you to meet your child's educational milestones, such as school and college, but it may not be adequate to cover the costs of higher education.
A changing economic environment, both active and passive inflation, and the rising costs of education a few years from now, always pose a question - is this enough? Besides, the children's plans could change as they grow. Your child may be inclined to study engineering when in their early teens, but the world is changing fast and this is creating newer career opportunities. So, after a few years, they might change their minds as their dreams and ambitions will change with the world.
Not just that but as a parent, you also constantly worry about your child's future in case something happens to you.
Is your insurance policy capable of covering your child's ambitions and your fears?
The solution is simple. You can now provide the safety net of protection for yourself and your loved ones through an easy to buy term plan. A term plan is the simplest form of insurance as it gives you a high sum assured at an affordable premium. The payout is guaranteed in case of an unfortunate event but some policies also have an option to pay out a monthly income along with the lump sum death benefit, which can be used to cover regular expenses. In addition, term plans give you tax benefits and the option to purchase additional riders to enhance the plan.
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That still leaves one question unanswered.
How do you cope with the rising costs of education?
Assuming your child sticks to the traditional options like medicine or engineering, some calculations and estimates predict that a simple engineering education may roughly cost a student about 25-30 lakhs in ten years.
And if your child wants to study at a foreign university, or for any other course, have you planned for the expenses that will come with foreign travel, two or three years of education, and living and other miscellaneous costs? You need a policy that will be able to take care of your child's dreams of getting there and living without compromising on comforts.
You can plan for this smartly by investing in a ULIP (Unit Linked Insurance Plan). ULIP plans provide you with versatile and flexible investment strategies and a range of options to generate wealth and take care of all your needs. If you invest in ULIP when your child is still young, it will give you a head start to build a good corpus as well as earn high market returns, which will make funding your child's international ambitions easier.
Protect yourself with the right plans
Staying ready for their children's goals will need parents to invest very intelligently. Select the policy that offers funds after considering the inflation costs and general rise in education prices and other costs over the next decade or so. It should also be flexible enough to allow for a change in plans and accommodate even higher expenditure than what was planned. That is an ideal policy that you can invest in.
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