How to select the right Child Plan for your kid

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Saving For Child

• How to select the right Child Plan for your kid

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The role of a parent comes with innumerable joys
and its own share of responsibilities. Right
from raising the saving for child from infancy to
seeing him/her settle down with their own
families there are umpteen things one needs to
take care of. And like every parent, you too,
would want to ensure that your childs every need
is taken care of without any compromises. This
is where Bajaj Allianz Life Insurance, with its
child plans, can assist you in taking care of
your childs education or marriage expenses in
the years to come. All you have to do is
regularly invest a fraction of your income in a
child plan to ensure you have sufficient funds in
the times ahead when your child needs it the most.
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So tomorrow if your child wants to pursue a
degree in Architecture from abroad or a
film-making course in a reputed institute, you
are well prepared to bear his/her expenses. And
even if something unfortunate were to happen to
you, you are assured that you will be able to
look after your child even when you are not
around. Selecting a Life Insurance policy for
children is one of the best ways to secure their
future. It provides them with the required
economic support. Child Plans primarily aid in
higher education and marriage expenses. In case
of loss of the main breadwinner, a child plan can
remarkably safeguard the childs future. Though
each plan is unique, certain important factors
that one must keep in mind while selecting a
child plan are 
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(a) When and what is the expected
requirementPlanning for your childs
future should start as soon as he/she becomes a
part of your world. Starting early will help you
keep ahead of your childs requirements. Invest
in such a manner that you get optimal returns and
ensure that your child gets the money no matter
what the circumstances. There are two primary
needs for which parents should plan education
and marriage of the child. You need to consider
the time and year of required funds for the
respective events. The maturity amount should be
sufficient to meet the future needs. By future
needs, we mean not just academic needs the plan
should also provide for extra-curricular talents
and interests. Tomorrow if your child wants to
learn how to play the piano or pursue their
interest in lawn tennis further, you need to make
arrangements such that they can be taken care of
satisfactorily. While planning for the amount of
expenses, keep in mind the inflation, which may
increase your requirements manifold. 
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(b) Features offered by the planAll plans have
different characteristics. One needs to minutely
differentiate between the various features of
policies according to specific needs and then
choose a policy which best suits their needs.
Some comparable features that could be considered
are as follows (C) Self-funding of premiums In
case of death of the provider, insurance
companies have an arrangement, which allow
continuation of the plan without the burden of
premium payments. Life Insurance companies take
it upon themselves to ensure that the child gets
the maturity benefit. (D) Flexibility of the
plan Best Child insurance plans allow for
partial withdrawals this proves useful to take
care of urgent needs without disturbing the
regular expenses and income matrix. The
flexibility to switch investments from one fund
to another lets you capitalise on the market
conditions and gain/protect yourself from market
volatilities.A comparison of the free switches
and redirection of investments permissible in a
year gives you the freedom to plan your finances
better.
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ULIP PLANS (Fund options)While a financial
advisor provides help for picking the right fund
and creating a judicious mix of investments, one
must look out for the fund offerings by the
company. Bajaj Allianz Life Insurance, for
example, offers a variety of 7 funds ranging from
complete debt exposure to complete equity
exposure. Traditional Plans (Bonus pay
outs)Look for the bonuses you are eligible for
in the plan. Bonuses usually start getting
accumulated from the 2nd policy year onwards and
add to the corpus substantially. You may also
want to check the type of bonuses associated with
your plan. For example, whether it is
cash bonus and the options allowed with it or in
the case of reversionary bonus you may want to
check if it is simple or compounded. Take a look
at our Child Insurance Plans and give your child
the best gift of a secure financial future today.
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