Becoming a parent especially for the first time is very exciting. The new born child enters the world with newly born parents. This bundle of joy comes with major responsibilities. Friends and relatives who visit the baby gift small amounts of money. It is good to save or invest such funds instead of letting them sit idle. In order to choose the best one-time investment plan for new born baby, parents must do a thorough research on various plans available. There are several single premium payments plans that offer double benefit of insurance and savings. These exceptional single premium plans are different from the regular premium plans.
One time investment plan for new born baby advantages
- These plans best suit parents who do not have a stable cash flow.
- Parents end up paying less compared to the normal premium plans because they are purchasing the policy instead of paying the subsequent instalments.
- There is no necessity to remember future payment date. So, it avoids policy expiration due to non-payment.
- Moreover, these policies also provide tax exemptions according to Income Tax Act.
How can you choose the best one-time investment plan for new born baby?
Having the right plan at place is extremely important in today's times. These plans also offer substantial returns along with financial coverage to enable the child fly high and come out with success. Current Indian market is flooded with several innovative child plans that are offering diverse benefits and features. Taking timely decision is the key. There are some pointers parents should consider before deciding on the best investment plan for new born baby.
It is important to decide and act as soon as possible. This provides you the benefit of making the years economically more productive. Moreover, parents get ample time in building and retaining adequate coverage for the child’s needs.
The cover you choose must be sufficient to fulfil the needs of your child in future. For this, one must analyse the current needs. They can also use an investment calculator to understand amount needed. When parents decide to start early, they can avail good Corpus at lower premium. Starting early is the key.
When choosing best child plan for new born baby, parents must also take inflation into account. Education cost is increasing day by day tremendously. So, parents must consider these factors before deciding on the coverage. Inflation is not considered; the accumulated Corpus may not be sufficient to meet tomorrow's needs.
Partial withdrawal option
The world around us is full of uncertainty and therefore it is very important to be financially prepared. Always choose the plans which offer partial withdrawal facility as this can be your safety cushion in case of emergencies. It is always better to be safe than sorry.
Applying for best child plan for new born baby
One can apply for the plan in two ways that is online and through intermediaries. All companies now have online availability. It would be easy to search for the specific plans online. Parents need to login to the company's website and choose the needed plan, coverage. They need to provide all the details such as age, premium amount etc. The payment can be done through net banking, credit or debit cards. In case of intermediaries or agents they need to pay the fees. So, it is always advisable to check online.
Parenthood journey is not easy but full of responsibilities. The primary responsibility of being a parent is to fulfil the needs of the child. Taking timely decisions with one time investment plan for new born baby is also very important. Today's little savings can be helping hand in the future. So, parents must take wise decisions for the fruitful future of their children.
*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.