Here are a few tips to secure the financial future of your child:
1. Make a financial plan - Financial planning is the first step towards securing your child's future. It would be best to consider the current expenses as well as future short-term and long-term expenses while making a financial plan. It is also important to account for the inflation rate while considering future financial commitments. Based on the requirement, choose the best saving plan for your child.
2. Get a life insurance plan for yourself - The most important aspect while considering financial security for your child is getting yourself insured if you are the sole earning member in the family or otherwise. In the event of your sudden demise, your child should not miss out on the financial resources for education and their career ambitions. The best saving plan for your child can successfully manage and reduce the financial burden on your child by providing them with the sum assured in your absence.
3. Select a waiver of premium rider - Opting for the right rider options is as important as getting yourself insured. The waiver of premium rider waives future premium payments if you are diagnosed with a critical illness or are permanently disabled due to an accident during the policy term.
4. Appoint a guardian - While choosing a savings plan for your child, it is important to appoint the reliable guardian for the plan. In your absence, the insurance plan will be under the name of the appointed guardian as long as your child is a minor.
5. Choose a flexible payout option - One of the best ways to serve your child's financial needs is to consider all possible expenses before you get a savings plan. For example, a guaranteed future plan will provide a life cover and, additionally, also provide guaranteed benefits. Also, the guaranteed returns can be availed of as a lump sum amount or as a guaranteed income.
The PNB MetLife Guaranteed Future Plan comes with 4 flexible payout options, which you can choose from as per your preference.
6. Start early – To ensure that the child saving plan you choose is an effective one, it is important that you start planning early. By starting early, you can ensure that even short-term goals in the near future can be taken care of, in case of an eventuality.
7. Choose flexible financial products - The financial commitments keep varying as your children grow. Your steady flow income also keeps changing at different intervals. Your child saving plan should incorporate flexible features such as premium payments, top-up options etc. Choose a flexible child saving plan that ensures that the various future financial goals of your child – ranging from higher education to marriage - can be covered under the same plan.
As a parent, no one wants the lack of financial resources to be an obstacle for your child’s dreams. That is why, securing your child’s future should always be a priority. It is important that you choose an insurance plan that provides the right type and amount of financial support for your child’s future when needed. To make this possible, choose a plan that is comprehensive enough and provides enough coverage for their various needs and goals.
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision. Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details
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