Upbringing Children and building a strong financial future is one of the integral parts of parenthood and is a prime responsibility of every parent. Besides, the fact is, providing the child with the best in life and ensuring them with good financial future is not a one night task, it is a lifelong process where one has to build it brick by brick.
One of the significant aspects of the entire exercise of securing your child financially is to have a child plan. While planning for a financially stable future for the child one should keep two things in mind: First, how to accumulate corpus by mean of smart investing for the current and future financial needs of the child and secondly creating a strong risk protection plan that can take care of any unforeseen event that may happen in life. Buying a child plan at right time in life not only secures your child’s financial future but also offers a host of other advantages both short term and long term. For your better understanding we have explained some of the benefits below:- Funds Your Child Education- To secure your child’s future if you are looking forward to buying a child education plan then you can compare plans offered by numerous life insurance companies and choose the best out of it according to your own suitability. The skyrocketing education cost is no new to individuals and with the growing inflation this will keep on increasing. So, for any parents the sooner one buy a child education plan the better it for their children to have a more secure and brighter future. A child education plan offers the dual benefit of saving come protection. Child education plan is designed to offer financial security to the child so that their education is not hindered in the case of any unfortunate event in future. Child education plan provides 10 times more sum assured amount with the minimum premium payment option. The lump-sum amount paid on child education plan can be further used for education expenditure. The lump-sum amount provided under child education plan is sufficient to pay for college education or even if your child wants to go for foreign studies. Generally, the sum assured amount offered by child education plan depends on the terms and conditions of the plan and on the money invested in it in ways of premiums. A Support Hand for Medical Treatment of the Child- During the tenure of child plan one can also avail the option of withdrawing money. It can be used for any medical purpose or for medical treatment of the children in case if they get ill. These partial withdrawals can be made very conveniently in the case of the child is hospitalized for any minor or serious medical condition. Some of the child plans take load of the financial burden caused by medical expenses and act as an add-on benefit over health insurance plan. Ensured Child’s Future in Absence of Parents- One of the most important aspects of future planning is to plan for uncertainties. As life is uncertain, the parents should make sure that the child should not have a financial crisis in case of any eventuality. The insurance company offers a premium waiver during the tenure of the policy of a child insurance plan if the insured passes away. As a beneficiary, the child receives a lump-sum amount in case of any uncertain demise of the insured. The premium waiver rider enables the plan to continue without any break and the financial burden of remaining premiums is passed on to the insurer. Offers Income Protection for Child- One of the main advantages of having a child insurance plan is that it protects the income of your children if they start earning at a very young age. It includes musician, child actors, artists, performers, etc. Having a child insurance plan by your side offers the benefit of capital appreciation for a long term for the child. Acts as a Backing for loans for Higher Education- As it is a known fact that the cost of higher education is booming rapidly a child education plan comes in handy if a person intends to take a loan for higher education as the money provided by the plan can be used as a backup. The child education plan can also be used as collateral for other child-related expenses. The best child education plan provides a comprehensive life insurance cover for the future education and career building of the child. As there are numerous factors that play a significant role in planning the best future for your child, identifying your requirement and planning for possibilities is a must do task for every individual.
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Insurance provides the financial support in the times of calamity. While an investment aims to preserve your hard-earned money. But what if you want both the options? That’s where the Unit Linked Insurance Plan (ULIP) comes in.
The premiums paid towards ULIP’s get divided into two portions. One of it goes towards providing the life cover to the policy holder. While the other gets invested in the funds of investors choice. These funds continue to earn returns during the policy period. HDFC SL crest investment plan is a unit linked investment plan offered by HDFC life. It is a short term plan which gives the investors both insurance and investment under a single plan. HDFC SL crest policy details The HDFC SL crest investment plan is a short term investment plan of 10 years. It helps you achieve your investment targets while also providing a financial assistance to your family. It assures returns on your investment for 10 years for the premium paid for just 5 years. The basic overview of the plan: Policy Term- 10 years Min - Max entry age- 14-55 years Maturity age- 65 years Minimum premium- Rs 50,000 Maximum premium- No limit Premium payment term- 5 years Minimum sum assured- Age at entry below 45 years: 10 × Annual premium Age at entry at 45 years and above: 7 × Annual premium Maximum sum assured- 20 × Annual premium Why to buy HDFC SL crest investment plan? HDFC SL crest is a well integrated investment plan that channelizes your money in the best manner. It gives you 4 funds options to create your own investment strategy. There is also a flexibility to choose your own sum assured multiple. Between 10× and 20 × annual premiums can be selected as the sum assured. Also, in case of your death, your nominee receives the maximum of the sum assured or the total fund value. Features of HDFC SL crest investment plan
Eligibility for investing in HDFC SL crest There are age limits and term limits to check the eligibility for investing in this HDFC SL crest investment plan.
Maturity benefits
Partial withdrawal benefits
Death benefits
HDFC SL crest NAV The HDFC SL crest investment plan provides a minimum of Rs 15 as the net asset value (NAV). HDFC crest is the only plan giving such a guarantee in the industry. Various charges incurred in HDFC SL crest investment plan Premium allocation charge
Fund management charge
Policy administration charge
Miscellaneous charge
Partial withdrawal charge
Switching charge
Morality charge
Exclusions in the HDFC SL crest plan The nominee shall only be paid the fund value, as on the date of death, in case of suicide within 12 months from the date of start or renewal of policy. The nominee would also get any charges recovered after the date of death. HDFC SL crest is a decent short term investment option reaping considerable benefits over the period. |
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March 2017
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