Child Insurance Plans
If you already have an insurance policy but still wish to buy one dedicated policy seeking the stability of your child’s future; you can opt for a child insurance plan. A child insurance plan is a policy which helps secure your child’s future through an insurance policy.
Child Insurance plans can be considered as a good investment plan for child’s future as it offers periodic withdrawals. You can also put to use the money gained from insurance to finance your child’s needs in the future. Insurance providers also offer perks like higher maturity date and higher sum assured at a low The minimum entry age for a child insurance plan is 18 years while maximum entry age is 48 years. You can choose the duration of premium payment from monthly, half-yearly and yearly.
The Key Pointers For Investments For Child
While planning for investments for a child, what are the crucial factors that pop up in parents’ mind? It’s their goals, objectives, and time-frame that determine the choice of child investment plans. Most of them consider financial investment to be an integral part of securing a child’s future. Be it completing education and fulfilling higher aspirations or arranging for their marriage, the right investment for a child will help the person sail through various stages of life.
A quick look at market stats will reveal that most of the parents i.e. 62.9% make investments when their child is within 0-3 years of age, substantially more than 9.2% of parents who plan investments before childbirth.
Financial Planning for our children has two parts. The easier to solve is the financial part, the more intense and difficult one is the behavioural part. The financial part of the financial planning is as follows:
- To set goals on what is to be done in the future.
- Assign values / estimates at today’s cost.
- Forecast (there will be large margins of error here) the expected cost in the future.
- Start saving/ investing to reach the targets
- Fine tune on a yearly basis (more or less, or as often as the situation demands).
Just some knowledge of basic mathematics and use of a spreadsheet should be able to take anyone comfortably through this process. The data related to returns forecasting and inflation related data can be taken from Google and mutual fund sites.