Becoming a parent changes everything. Your priorities no longer revolve around just your personal goals, and instead, your child takes the center stage. Every move you make, every step you take - intentionally or unintentionally, is aimed at securing and improving your child’s future.

The first step towards securing your child’s future is ensuring their financial security and stability, especially in the case of unforeseen tragedies. This leads most parents to invest in some kind of child insurance policy. The tricky part is choosing the right one for your child. Every kid is unique and so are their insurance needs. And, so it goes without saying that your investment decision should be a well-informed and well-researched one.

Providing your child with the best possible education is the best way to secure their future and thus, most children insurance policies focus on educational benefits. However, there are a host of other factors that should influence and ultimately determine your policy investment decision. Some of the most important ones include:

Inflation

No matter how lucrative a policy might sound in terms of coverage amount offered, there is no way for you to successfully predict the future, especially in terms of market inflation and the value of your current insurance coverage amount. Also, since the policy benefits are going to be enjoyed only after a couple of years down the line, it is important to consider the possible inflation rate before making any investment decision.

The smart thing to do is to choose a plan that offers flexibility in the benefits associated with the policy in association with the changing rate of inflation. There are a number of wonderful policies available that offer security against the changing tide of inflation with a host of investment options and even timely loyalty addition.

Aviva Young Scholar Advantage is one such flexible policy. Not only does it offer you the option of investing in 7 different mutual funds with 100% of your premiums. This ensures that even with the changing market rate, you reap additional benefits on your existing plan.

You further get to enjoy guaranteed loyalty addition to enhance your existing fund value.

Payout Intervals

Even though you are working to secure your child’s future, there are a host of annual expenses that also need to be taken care of.

Having a policy that not only offers long term benefits but also includes short term advantages can really boost your child’s overall growth. From the ever-rising school fees to tuition needs, a child’s financial requirement grow with them. Thus, it is advisable to invest in a policy that not only offers lucrative coverage sum but also allows for short term financial perks.

Aviva Young scholar Secure is one such policy with multi-faceted benefits. Not only do you get a generous coverage amount at the end of the road, but it also helps your child attain their desired educational goals with a couple of yearly benefits that will celebrate your child’s every milestone while providing them with a financial security blanket to help cover the expenses along the way.

You also can claim the College Admission Fund(CAF) that can be cashed when your child turns 18 and thus provide for their ivy-league dreams.

Not only this you also get to enjoy Higher Education Reserve(HER) to cover post-graduation expenses, available once your child turns 21 years of age. And, just like almost every Aviva policy, this one comes with the option of adding an “Aviva Term Rider”.

Maturity Amount & Added Perks

Most children’s policies offer additional annual payouts beyond the maturity sum offered to cover the changing financial needs of children along the way.  Traditional policy plans like Aviva Dhan Nirman and Aviva Dhan Smariddhi offer an annual payout up to 5-6 years post-maturity which can amount to 150% of premium payments in some cases.

This essentially means that even after cashing in the maturity amount, your policy allows for annual payouts up to INR 1, 32, 060 for the next 6 years. This translates to you enjoying benefits of up to 8% interest on your premium payments.

With Aviva Dhan Nirman, you not only enjoy the above-mentioned benefits but also get a reversionary bonus every year starting at the end of the first year of premium payments. This allows you to relax even with changing monetary rates and handle even the worst inflation rates with a smile on your face!

Traditional or non-traditional, both types of Insurance policies offer death benefits. The thing to look out for is the claim settlement ratio of the said company. This is important because, in the unfortunate case of your sudden absence, you would not want your family members to go through the added grief of having to struggle to get settlement amount.
Thus, investing in any type of insurance policy should only be done after thorough market research of the ease with which previous claims were settled for the concerned families.

Now that you know the metrics you should consider while picking a policy, it’s time for you to do your due diligence and secure your child’s future!

Apr 24/19

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