Child Plans

Top 3 tips when you are considering child plans

abhishek — Mon, 16 Aug 2021 06:30:00 GMT

Top 3 tips when you are considering child plans

16-Aug-2021 16-Aug-2021'

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.

E – support@oneinsure.com | M – 86559-86559

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Schools/Colleges Won’t Reduce Fees Even with 100% Online Education – ACT NOW

abhishek — Sun, 02 May 2021 06:30:00 GMT

Schools/Colleges Won’t Reduce Fees Even with 100% Online Education – ACT NOW

02-May-2021 02-May-2021'

abhishek

As a fee-paying parent of school- or college-going children, it is tough to understand why education institutions refuse to reduce academic fees in these pandemic times, which have forced classes and lectures to be conducted mostly online.

Justifying their stand, education institutions rightly point out that even though the classes may have shifted online, the costs and overheads they have to bear have not reduced. Almost all institutions have had to invest heavily in IT infrastructure to adapt to the pandemic times. Also, they are resistant to let go of their staff since there is hope that the pandemic will soon be gone and things might go back to the offline model.

Added to that, Central and State Governments have limited scope to reduce education costs in the long term.

In short, as a parent, there doesn’t seem to be anywhere to hide. Education, whether offline or online, will be one of the largest investments in your earning life.

So, how can you ACT NOW?

A brief note on Child Plans

With Child Insurance Plans, you can start saving systematically and secure your child's financial future as well as ensure all academic costs are well taken care of. This is one of the best ways to save with regular investments for your child’s future needs. Although it is ideal for you to start child plans immediately after your child is born, it is never too late to start saving in a disciplined manner for your child.

In case of money-back policies, your little one stands to receive survival benefits at regular intervals. For example, when s/he turns 18 years of age (when they pass Junior College and opt for a Professional course), the insurance company would pay around 20% of the sum assured, and another 20% after two years and so on.

As you can see, 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.

To find the most suitable cover to secure the future of your little ones, give us a ring at 86559-86559 or write to us at support@oneinsure.com and we will be happy to help.

So, even though schools and colleges might not want to reduce fees in a 100% online education environment, your children will not have to experience any lack when it comes to academics.

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Love Your Child? Prove It with a Child Plan (Part 1)

abhishek — Tue, 20 Apr 2021 06:30:00 GMT

Love Your Child? Prove It with a Child Plan (Part 1)

20-Apr-2021 20-Apr-2021'

abhishek

They say the instinct to protect and nurture one’s child is one of the strongest instincts among us human beings. Yes, we are all more than capable of providing 3 square meals to our children and protecting them from physical harm; however, in order for them to protect themselves and fend for themselves in the world outside your protection, they require:

A good education
A wholesome childhood without financial constraints (including food, entertainment, and vacation expenses)
Enough saved up in case of healthcare needs

So, as a parent, it is your duty to prove your love for your child/children with a Child Plan that ticks all of these boxes. With OneInsure, it is quite easy to choose one too. Simply call 86559-86559 or email support@oneinsure.com to know more about how Child Plans work.

Let’s now see why investing in Child Plans as a parent is a MUST!

What You Need to Know about Child Plans

One of the best ways to save with regular investments for your child’s future needs is through Child Insurance Plans. You can start saving systematically with the help of Child Plans and secure your child's financial future. Although it is ideal for you to start child plans immediately after your child is born, it is never too late to start saving in a disciplined manner for your child.

As you can see, 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.

To find the most suitable cover to secure the future of your little ones, give us a ring at 86559-86559 or write to us at support@oneinsure.com and we will be happy to help.

Do YOU love your child/children? Here’s your chance to prove it to them by opting for a Child Plan today!

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Smart Parenting and Child Plans

Aditya Nair — Thu, 23 Jan 2020 07:29:00 GMT

Smart Parenting and Child Plans

23-Jan-2020 23-Jan-2020'

Aditya Nair

While our parents did work hard for their children, you’d have to agree that parenting has become tougher in the present generation. And this is especially so due to the much higher sums parents today have to spend on basics like education, healthcare, entertainment, and the daily expenditures of raising a well-rounded child.

It doesn’t take rocket science to realize that disciplined savings are the only way to meet the rising expenses of bringing up a child. Old-fashioned savings schemes are never going to be enough.

According to a study by ET Wealth in 2011, it costs about ₹54.75 lakhs to raise a child from birth until s/he is 21 years of age. Factoring in inflation, if your child is born in 2015, this figure will easily touch ₹75 lakhs. If s/he is born in 2020, we are looking at 1+ crore. And this is for a single child for education alone, mind you.

We hope you realize the strain this is going to put on your finances. However, this is not an option as a parent. Therefore, at OneInsure, we suggest householders to invest in an instrument that merges two financial strains (child-raring expenses + tax pay-outs) into a smart investment tool that takes a huge burden off your shoulders as a parent.

Smart parenting = Smart investments + Tax savings

With a child plan, you can be rest assured that major expenses like education and even marriage is taken care of to a great degree. With a small investment of Rs 8,000 – 9,000 a month in a child plan, you can avail a maximum of Rs 21 – 22 lakhs to meet the rising education cost at different intervals of your child’s education.

Some new-age plans come with the money-back option, where the insurance company would pay around 20% of the sum assured when s/he turns 18 years of age, another 20% after two years, and so on. You can also opt for endowment policies, where a lump sum amount is paid at maturity along with bonuses.

One of the benefits of child insurance plans is its waiver-of-premium feature. If the policyholder (parent) were to pass away, all the future premiums will be taken care of by the insurance company and the policy will continue to be active.

How Does a Child Plan Save Tax?

Investments made under a child plan are Section 80(C) compliant. This means that you can claim tax exemptions up to Rs 1,50,000 when you invest in a child plan. Along with taking care of your child’s education and other major expenses, a child plan ensures your hard-earned money is saved too – a win-win situation for any parent!

M – 86559-86559 | E – support@oneinsure.com

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Child Plans or Loans, Which One Will Pay for Your Child’s Education?

Aditya Nair — Mon, 19 Aug 2019 06:43:00 GMT

Child Plans or Loans, Which One Will Pay for Your Child’s Education?

19-Aug-2019 19-Aug-2019'

Aditya Nair

The decision to take a loan changes the orientation of your life.
You no longer own it. You are owned.

— Dave Ramsey

As mature householders, we all aspire to be in the driver’s seats of our lives. Our ability to manage money and make it grow throughout our working lives is a major indicator of whether or not we have succeeded in staying on top of things.

However, if you have to take a loan for expenses like paying off your credit card bills or going on a vacation with your family or to pay for medical bills, it may be an indicator that you are not being financially prudent.

Due to ever-increasing fees for quality education, many parents end up either availing a heavy loan or taking some other drastic step, like reverse-mortgaging their home. This either puts them in deep debt or forces them to let go of other assets. This is a financially loss-making scenario any way you look at it.

Instead of being forced to compromise oneself financially, it is far more favourable and prudent to plan ahead and start saving small sums of money for fixed expenses later in life. For example, as soon as your child is born, keeping aside 7–8% of one's monthly salary for their higher education is a smart thing to do.

Moreover, since your salary is only going to increase from that stage of your career, this 7–8% will gradually become a mere 4–5% of your monthly salary. This is a comfortable proportion for something as important as the future of your child.

New-age child insurance plans have the following advantages:

Targeted Maturity – You can buy plans that pay out large sums at the appropriate milestones of your child; for example, when they have to get admitted to a university.
Continuity – Investments in gold, FDs, and mutual funds can be discontinued without a penalty. Due to this feature, it is very easy for people who have a financial crunch to either stop funding these investment tools or break into them. Contrarily, due to the unavailability of a discontinuing feature in child policies (without penalties), the habit of saving continues and you are invested for the entire duration agreed upon between the insurer and yourself. In a way, child plans do not allow you to move your eyes away from the larger goal.
Guarantee – The rate of gold can crash at any time. The rates of FDs can crash or drop sharply too. And, of course, mutual funds’ returns are subject to market risks, which are unpredictable. However, child plan returns are guaranteed. Once insured, the pay-out is not dependant on external factors like markets and investor sentiments. This is why these plans are one of the best child education plans out there today.

Speak with a Financial Planning Expert
M – 86559-86559 | E – support@oneinsure.com

Be Sure with OneInsure

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Protect Your Child’s Future while Saving Tax

Aditya Nair — Fri, 15 Feb 2019 06:56:00 GMT

Protect Your Child’s Future while Saving Tax

15-Feb-2019 15-Feb-2019'

Aditya Nair

The mature urban Indian householder knows that to meet the rising expenses of bringing up a child needs disciplined savings. Just having an FD or RD is never going to be enough. According to a study by ET Wealth in 2011, it costs about ₹54.75 lakhs to raise a child from birth until s/he is 21 years of age. Factoring in inflation, if your child is born in 2015, this figure will easily touch ₹75 lakhs. If s/he is born in 2020, we are looking at 1+ crore. And this is for a single child, mind you.

Let’s see some realistic child education expenses:

Education at any decent school costs Rs 25,000 a month today, and will cost close to Rs 50,000 a month by 2030.
A good 4-year Engineering program costs close to Rs 12 lakhs today, and will cost close to Rs 25 lakhs by 2030.
A reputed B-School charges around Rs 20 lakhs for a 2-year MBA. By 2030, the same will cost Rs 45 lakhs.

This is only for education and only for a single child. You need to ask yourself how prepared you are to meet these steep demands. In addition to these costs are the costs of the upkeep of your child:

Food expenses
Healthcare
Entertainment
Family vacations

And in the middle of all this, say something happens to you. What provision do you have in place to take care of your child’s education? Any delay in child education planning will be detrimental for your child’s future. The OneInsure Research Desk strongly suggests that you begin child education planning in the early years of marriage.

With a child plan, you can be rest assured that the education cost of your child is taken care of. With a small investment of Rs 8,000 – 9,000 a month in a child plan, you can avail a maximum of Rs 21 – 22 lakhs to meet the rising education cost at different intervals of your child’s education.

How Does a Child Plan Save Tax?

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I Promise to Keep My Child Happy and Diabetes Free

Sravan — Wed, 14 Nov 2018 06:52:00 GMT

I Promise to Keep My Child Happy and Diabetes Free

14-Nov-2018 14-Nov-2018'

Sravan

On Nov 14, 2018, people around the globe observed World Diabetes Day and Indians celebrated Children’s Day. While these concepts might seem dissimilar at first glance, let’s take a deeper look in this piece and see how, as parents, we can not only imbibe good qualities in our children but prepare them early in life to prevent what is going to be the biggest healthcare risk of their times – lifestyle disorders like Diabetes, heart disease, and hypertension.

100 years ago, lifestyle disorders did not exist in India.
50 years ago, lifestyle disorders still did not exist in India, but we heard about them in foreign countries.
20 years ago, lifestyle disorders like Diabetes, heart disease, hypertension, high BP, obesity, and other comorbidities started creeping into Indian society as people started having sedentary lifestyles, poor diets, developed vices like smoking and drinking, and started using personal vehicles and other creature comforts extensively.
5 years ago, lifestyle disorders became the greatest cause of deaths in India, beating cancer or AIDS. The number of obese people nationally doubled in the short period of 2005 to 2015. Close to 25% of all deaths reported in urban areas in the country were due to cardiovascular diseases.

These are scary figures. And the trend is clearly noticeable. While our grandfathers and grandmothers lived slower lives than us and had fewer conveniences and amenities, they lived healthy and fulfilling lives and enjoyed the finer pleasures of life. The more humanity has attempted to make its life convenient and “at-the-touch-of-a-button”, the more and more unhealthy it has made its own existence. And it is only going to get worse for the coming generations.

Many healthcare experts agree that today’s urban lifestyle—poor diet, lack of physical activity, alcohol, tobacco, and pollution—can by itself be categorized as a disease.

Having said that, it isn’t possible to live in a shell either. Your children are going to have to be brought up in this same environment and will have to face these challenges as they grow up. So, what can we do as parents to negate this large disadvantage that our children are going to face:

Mindful Eating – Parents introduce mobile phones in their children’s lives as a distraction when they refuse to eat their food. Although children then begin eating without too much resistance, this is one of the worst habits you can hook your child to. They then refuse to eat without a video running in the background. This is unnatural and very unhealthy. This habit, which usually starts when they are in their nappies, continues well into their teenage years.
When a child eats with their focus on the food and with their own hands, it speeds digestion, improves stools the next day, and they process the nutrition of the food better, which results in a happy and healthy child instead of a dull, cranky, or distracted one.
Personal Discipline and Resisting Temptations – Children are like clay. They take the shape of the people and circumstances around them. Moreover, the lessons they learn when they are little will remain when they are grown too. Child psychologists stress the importance of parents knowing when to use a firm “no” with their children. Children are impulsive by nature, and parents are responsible to drive home the point that they cannot have anything and everything they want. When these small lessons are consistently delivered, they will develop into well-rounded young people who know how to resist temptations and who know that, in life, short-term pleasures give long-term pain and short-term struggles give long-term satisfaction and happiness.
“Eat What Your Grandparents Ate” – You might have heard celebrity dieticians use this line. It covers all of the new-age dieticians’ advice in 5 words. What this means is:
- Eat home-made food as far as possible
- Eat at fixed times during the day and in moderation
- Cut out preserved foods and canned foods from your life
- Reduce carbonated drinks and processed foods
- Focus on age-old foods like wheat, rice, dal, veggies, which our bodies are familiar with, instead of unfamiliar foods like cheese, paneer, fried foodstuff, or packaged chips
- Consume only in-season fruits and vegetables; if they aren’t in season but still available, they have been preserved! Avoid at all costs!
More Time on Feet, Less on Butt – Various studies conducted in a number of countries found that children who watch more than 2 hours of television or videos a day are disadvantaged in many ways:
- Impaired performance at school
- Behavioral difficulties, including difficulty in making friends and empathizing with people
- Attention disorders
- Obesity
- Irregular sleep, including trouble falling asleep and resisting bedtime

Children should spend more time on their feet, playing, rather than watching TV or YouTube. This is completely in your power. Get yourself and the children out the door. Let them get dirty and sweaty. Remember, tomorrow is too late. It’s not a good idea to delay good habits.

These steps are challenging to implement, but not doing so could very well mean that there is a higher chance your child will be a victim of a lifestyle disorder or two as they grow older. Yes, your dinner table may be a bit boring compared to your neighbor’s, but your children and their children will thank you for it!

Also, children pick up on things quickly. It’s not that tough to start them on a good habit. Since you have read this article till here, take the next step and start implementing these steps. Good luck!

Did you know that many new-age health insurance plans allow you to cover your spouse as well as your children for a nominal extra cost? A health plan is one of the mandatory items of the urban Indian’s financial planning. Drop us a line at support@oneinsure.com or call 86559-86559 or visit here to know more about Family Floater Health Plans.

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Here’s How to Make Your Child Money-Smart

Mariya Panwala — Fri, 24 Aug 2018 10:49:00 GMT

Here’s How to Make Your Child Money-Smart

24-Aug-2018 24-Aug-2018'

Mariya Panwala

Most schools will not teach your children money lessons; they will either learn it from their friends or from the culture they’re growing in. And as parents, you wouldn’t want to fling your children in the ocean and hope they will figure out how to swim. For all you know, they might just drown!

Responsible parents take it upon themselves when it comes to teaching their children money lessons. But most parents who wish to educate their children financially have one nagging question: When and how do we start teaching our children money lessons?

“By age 3,” observes Beth Kobliner, the author of Make Your Kid a Money Genius. “By 3, children can understand basic money concepts like exchange (sic), that they have to make choices, and that things have value.” She insists that it is between the ages of 3 and 7 that parents should start talking about money to their kids.

After answering the “when” part of the question, let’s move ahead with the “how” part.

Teach Them the Importance of Savings

Do this activity: give your child a few currency notes and two jars. Label one of them as “Save” and the other as “Spend”. Now, explain to your child the meaning of both these words. Then ask him/her to put in the currency notes in any of the jars s/he wishes to. Observe what your child does. After a choice has been made, ask your child why s/he chose a particular option. If the child hasn’t chosen the “Save” option, explain to them why saving is important.

Post this activity, give your child a piggy bank and ask him/her to regularly put into it all the money that s/he will receive in the future from you or your relatives. And when they hit a savings goal, give them a reward. This will encourage them to save more.

Don’t Give in to Every Demand

When your child asks you to buy them XYZ, don’t easily give in to that. Also, avoid saying a plain “No”. This could disappoint them. Instead, take this as the opportunity to further inculcate the savings habit in them. Ask them to put it on their wish-list and encourage them to start saving for it.

Involve Them in the Preparation of Your Household Budget

By the time your child is over 7 years, you can start involving them in the preparation of the household budget. For starters, prepare a budget and take your child grocery shopping. And while you’re at it, ask them to keep a tab on the set budget and see to it that they’re not buying unnecessary items. This will help them understand how to set priorities and avoid unnecessary expenditure.

After they have crossed 10 years of age, you may start involving them in the money decisions that you and your spouse would make. Explain to them why you took a certain money decision. For example, if you’re going on a budget family trip, explaining to your child why you’re choosing to travel by train instead of the airplane will not only help your child become more aware financially, but will also help them understand the value of money.

Give Them Commissions

In their teenage years, children tend to develop goals to buy something substantial for themselves – a mobile phone or a PlayStation. In order to help them achieve this goal, you can start giving them pocket money or commission every time they undertake a major household task, such as paying the electricity bill or washing clothes.

Introduce Them to Insurance

Right when your child is young, introduce them to the concept of insurance. Tell them why you took a certain insurance policy and how it is going to help them when the time comes. Explain to them how, for example, having a health insurance policy will relieve you from an unanticipated financial burden that a hospitalisation event may create. Gradually, introduce them to different types of insurance policies so that by the time they’re in their 20s, they have become insurance-smart.

Finally, Be a Positive Role Model

The general belief is that the child’s conduct reflects the ways of his/her parents. Unless you yourself do not practice what you preach, you can’t expect your child to do an amazing job of saving. Even if you might have made money mistakes in the past, it is alright as long as you have learned from them. Be sure to avoid them in the future.

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References:

PBS NewsHour. (2017, March 30). The Best Ways to Teach Your Little Kids About Money (Video file). Retrieved from https://www.youtube.com/watch?v=bmyzRf3bV3k

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Are You Prepared To Meet Your Child’s Education Cost?

Mariya Panwala — Thu, 29 Mar 2018 03:56:00 GMT

Are You Prepared To Meet Your Child’s Education Cost?

29-Mar-2018 29-Mar-2018'

Mariya Panwala

Planning for your child’s education is never too early. In fact, if we go by the growing cost of acquiring education in India, you may as well think that you’re late.

The cost of getting an education in any of the decent schools today is at least ₹25,000 a month and it will only increase year by year. A good 4-year engineering course that costs about ₹8-10 lakhs today will easily cross ₹17-18 lakhs by 2025. By 2040, it is expected to cost ₹50 lakhs.

Similarly, a reputed institute today for an MBA course charges around ₹15 lakhs. By 2025, the same will amount to ₹45-50 lakhs and by 2040, it is expected to cost ₹75-80 lakhs.

How much prepared are you to deal with the rising education cost? Worse than that, if something happens to you, have you made a provision for your child’s education?

One must realize that delay in child education planning may be detrimental for your child’s future. Therefore, preferably begin child education planning in the early years of marriage.

However, it is also never too late.

With a Child Plan, you can rest assured that the education cost of your child is taken care of. With a small investment of ₹8,000-9,000 a month in a Child Plan, you can avail a maximum of ₹21-22 lakhs to meet the rising education cost at different intervals of your child’s education.

Conclusion – Plans in the market cater to different needs of the policy seekers. An expert must be consulted before signing up for any plan. At OneInsure, they provide insurance-related guidance and services across various products. Get in touch with them on 86559 86559 or at support@oneinsure.com to fix a meeting with one of their financial experts.

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How Much Does It Cost To Raise A Child?

Joan — Wed, 14 Mar 2018 09:08:00 GMT

How Much Does It Cost To Raise A Child?

14-Mar-2018 14-Mar-2018'

Joan

Bringing up a child isn't just an emotional investment for parents everywhere, but also a big financial obligation. With the cost of healthcare and education shooting up, it has become all the more necessary to have in place a financial plan that covers all the expenses from the time your child is conceived until s/he can look after herself or himself. According to a study by ET Wealth in 2011, it costs about ₹54.75 lakhs to raise a child from birth until s/he is 21 years of age. Factoring in inflation, if your child is born in 2015, this figure will easily touch ₹75 lakhs. If s/he is born in 2020, we are looking at 1+ crore. And this is for a single child, mind you.

Here is a look at some of the major expenses you will incur while raising your child.

Education

Education costs you’ll need to consider include schooling, graduation, post-graduation, and coaching fees for professional courses. An Engineering course that costs about ₹15 lakhs today will cost at least ₹40 lakhs by 2035. Similarly, an MBA degree from a reputed institute, which costs at least ₹15 lakhs today can go up to ₹60 lakhs by 2035.

Also read: Are you prepared to meet your child’s education expenses?

Healthcare

According to a study by a finance magazine, parents spend about ₹2 lakhs on healthcare for their child until the time s/he is 21 years of age. Medical expenses are usually high in the initial few years and then remain low unless there aren’t any major illnesses. Besides this, there are also maternity expenses to be taken into account. A normal delivery can cost about ₹50,000 or so, while a Caesarean delivery could go up to ₹1,50,000.

Food Expenses

Food-related expenses can amount to an average of ₹6,000 per person per month. This can total to ₹72,000 or more in a year. The figure will increase when you take inflation into account. So, you will be spending about ₹10 lakhs or so over the next 10 years in food expenses alone!

Entertainment

The study by ET Wealth also stated that parents spend up to ₹6.57 lakhs on entertainment expenses for their child. The money spent on entertaining your little one can sometimes be more than feeding or clothing him/her.

Cover Your Child’s Future - Invest in Child Plans

One of the best ways to save with regular investments for your child’s future needs like higher education is through child insurance plans. You can start saving systematically with the help of child plans and secure your child's financial future. In case of money-back policies, your little one stands to receive survival benefits at regular intervals. For example, when s/he turns 18 years of age, the insurance company would pay around 20% of the sum assured, and another 20% after two years and so on. You can also opt for endowment policies, where a lump sum amount is paid at maturity along with bonuses.

One of the benefits of child insurance plans is its Waiver-of-Premium feature. If the policyholder (parent) were to pass away, all the future premiums will be taken care of by the insurance company and the cover will continue to be active. Almost all life insurance companies include child plans in their portfolio of offerings. To find the most suitable cover to secure the future of your little ones, give us a ring at 86559-86559 or write to us at support@oneinsure.com and we will be happy to help.

Ask all your insurance queries to our experts right here on WhatsApp
Get tax certificate
Surrender your policy
Change policy details
And many other services

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How to Financially Secure Your Child's Future

Joan — Wed, 21 Feb 2018 11:57:00 GMT

How to Financially Secure Your Child's Future

21-Feb-2018 21-Feb-2018'

Joan

The primary concern for parents everywhere is ensuring their kids have a secure and better tomorrow. This involves being able to give them the necessary financial support during all the major milestones of their lives – school, college, marriage, and so on. Investing in a child insurance plan is therefore recommended as it serves the dual purpose of investment and insurance for your child. A child insurance plan ensures a secure future for your little one.

How Do Child Insurance Plans Work?

In the event of the demise of the parent, the insurance provider pays a lump sum amount (the sum assured) for the child’s benefit. If the plan comes with the waiver of premium feature, the insurance provider takes care of the future premiums such that the planned corpus gets accumulated and the child’s future is secured. These plans create a fund of the desired amount, which can be drawn upon at regular intervals to cater to different needs of the child, like education, marriage, and so on.

Nearly all life insurance companies offer child plans in their portfolio. Some are market-linked policies, allowing policyholders to choose between investing in debt or equities, and others are traditional plans that invest only in debt. Under Section 80(C) of the Income Tax Act, tax deductions can be claimed for the premiums paid towards this policy, and the proceeds received are tax-free under Section 10(10D).

Looking to avail a child insurance plan to secure the future of your little one? Write to us on support@oneinsure.com or give us a ring at 86559-86559 and we will help you find the most suitable cover.

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How Ready Are You to Cope with Ever-Increasing Education Inflation?

Sravan — Wed, 19 Aug 2015 06:56:00 GMT

How Ready Are You to Cope with Ever-Increasing Education Inflation?

19-Aug-2015 19-Aug-2015'

Sravan

Every parent strives to provide the best facilities to their children. When it comes to education or standard of living, no parent likes to compromise. According to a survey, more than 60% of Indian parents believe that education and career are the most important objective in their children’s lives. Nevertheless, for parents, the most important challenge is to lay aside sufficient money for their child's college or higher education.

In today’s times, the annual fees for admission into the pre-primary section in a reputed school ranges between Rs 75,000 and Rs 1,25,000. In the early 2000s, the entire cost of acquiring an MBA Degree was Rs 4 lakhs, and now the same institution charges Rs 25 lakhs. Considering inflation, by 2030, this figure will easily reach Rs 60 - 70 lakhs. Mind you, this data is only for a single child.

Here is a tabular representation of the current and future fee structures of a few courses that will give you the reason for planning your investments when it comes to fulfilling your child’s dream.

Education Streams	Cost in 2020	Cost in 2030
School Annual Fees	2 lakhs	6 – 7 lakhs
Engineering	10 lakhs	30 lakhs
MBA	25 lakhs	70 lakhs
Commercial Pilot	60 lakhs	2 crores
MBBS	15 lakhs	50 lakhs

Suggested Reading: How Much Does It Cost To Raise A Child?

Moreover, do you think you are prepared to raise your child, especially with the growing cost of education and healthcare? God forbid, if something happens to you, have you made any arrangements for your child’s future?

Do not get bogged down with these numbers. The first step is to START.

To ensure your child’s future both in your absence and presence, investing in child plans is highly recommended. A child plan acts as a strong financial support system in all the major events of your child's life, like school, college, graduation, post graduation, and so on.

How Does a Child Plan Work?

In return of the premiums paid by you, a child plan gives regular pay-outs at given intervals of time along with tax benefits under Section 80(C) and 10(10D). And if you survive throughout the policy term, the plan pays a fixed maturity benefit.

In case of your untimely demise, the beneficiary / your child gets a lump sum for your child’s future. All the future premiums are waived off, and the plan pays a fixed maturity at a fixed age of your child in tranches or lump sum as you decide or as per the plan.

When Should You Buy a Child Plan?

It is always advised to start investing in a child plan as early as possible. If you invest when your child is 10 years old, the plan becomes futile as the years left for money to compound and grow are less. Many people have this misconception that a child plan can be purchased only after the child is born. Child plans are designed in such a way that you have to start investing in them when your wife has conceived or maximum up to 2 years after the child is born, so that the benefits or the pay-outs are received exactly when they are needed. Nevertheless, it's never too late to buy a child plan.

Things to Look Out for while Buying a Child Plan

When opting for a child plan, the parent should be the policyholder and not the child.
You (the policyholder) should opt for a Premium Waiver as an in-built benefit in the plan. If not available as an in-built feature, you should opt for additional riders that waive premiums in case of the death of the policyholder.
Choose monthly or annual pay-out modes as lump sum money can be spent on some other, less important purposes.
Disclose all medical conditions while applying for a child plan.

It might be easier to say that planning helps you to control your financial decisions and build a corpus for your future. But when you think about your child’s education and future planning, it is required to start early and regular investments to save the hassle you may face in the future.

To find the most suitable child insurance plan to secure the future of your little ones, give us a ring at 86559-86559 or write to us at support@oneinsure.com and we will be happy to help.

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Planning a Lavish Birthday for your Child? Think Again!

Tue, 09 Jun 2015 10:42:00 GMT

Social pressures and emotions sometimes take over grey matter, we plan for our younger ones birthday bash for months. The day finally arrives and then vanishes down the memory lane and takes away our savings account balance too.