Investing your money in a comprehensive life insurance policy is a wise decision. However, buying a policy for your children is not always the same as buying one for yourself. There are specific factors to be kept in mind while investing for your children. Understanding these factors will help you secure your children's future.
First and foremost, you need to determine how much money your children will need, when will they need it and for what purpose. This will give you an idea about the amount of coverage you need. Secondly, you need to analyse your annual income, debts, expenses and other future obligations.
You work hard to fulfill your children's aspirations and desires. However, certain goals may take a long time get fulfilled. For such goals, different life insurance solutions can come handy. For instance, child Unit Linked Insurance Plans (ULIPs) combine the option of insurance with investments. And some companies offer you the choice of investing in a variety of funds like equity, debt or balanced funds. These options not only allow you to secure your child's future financially, but also earn good returns.
You can also opt for different types of ULIPs based on your child's ambitions. For instance, if your child aspires to pursue higher education abroad then you can invest in one ULIP, while for her marriage, you can select another appropriate ULIP.
An array of solutions
In addition to ULIPs, you can also opt for term insurance which provides coverage for a fixed time period. With such a plan you can ensure that your child's long-term needs are fulfilled even in case of your absence.
Having a combination of ULIPs and term insurance will provide your child double protection, and ensure financial stability to meet their aspirations.Investing in different life insurance plans as per your children's long-term requirements can hence make their dreams come true.