Couples in urban India are no strangers to money matters. In many ways, money is the central theme to an urban couple’s existence. The influence of money is no less when it comes to starting a family. After all, having a child involves a significant diversion of finances to sustain and nurture the new life.
This article won’t elaborate on the vital role of a child plan in an urban couple’s finances. The reader is already well aware of how child plans, with small investments made steadily while your child is growing up, can take care of major expenses like education and even marriage to a great degree.
Instead, this short article will share 3 top tips OneInsure’s experts have listed based on their vast experience.
- List down your child’s important milestones before you start looking for child plans: Child plans are basically money-back plans that pay out large sums of money at certain intervals. However, these intervals have to be fixed at policy inception based on your child’s academic milestones. For instance, 20% pay-out when your child is 15 years old, 40% at age 17 and 40% at age 20 will take care of the majority of education-based financial requirements.
- Buy a plan within 1 to 2 years of your child’s birth: Although it’s better late than never, the younger your child is when you buy a child plan, the better. The money you invest with the insurance company needs time to compound and become a large sum.
- Your lifestyle, the city you reside in, and your premium appetite are important factors: Naturally, factors surrounding your child will play an important part in whether the child plan’s pay-outs will be sufficient to meet education requirements. However, make sure you don’t choose very high premiums, because that might interfere with your financial flexibility to give your child a good, holistic upbringing.
Child Plans can be customised according to your child’s needs. You can also opt for endowment policies, where a lump sum amount is paid at maturity along with bonuses.
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