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Inflation and Child Plans - What Must You Do

March 11, 2019 1514

In the highly competitive professional world of today, every parent obviously wants their child to receive the best of avenues that are available and that will enable them to reach the peak of their potential. As responsible and loving parents, you will never take a chance that can even remotely suggest any shortcoming in making such avenues available to your child. One of the best manners in which this can be ensured is taking out child-specific plans. Owing to the increased customer-focus and the opening up of the market options, many such plans are available today that offer varied benefits. These benefits range from child-specific savings schemes, market-linked child plans and goal-based child-plans. Different child plans deal with different aspects of a child’s requirement and life-goals. Such plans allow the parents to build up and retain a sufficient financial reserve to meet the child’s needs while ensuring that the basic savings corpus is kept safe and secure.

While choosing a child-plan, you must ensure that the total coverage offered suits the specific life goals of your child in a futuristic manner. All child plans are basically futuristic in projection and hence, any financial decision of investing in them has to be futuristically oriented. Time is also of essence and therefore, it is very important to act as soon as possible. This is because taking a timely decision allows you the advantage of making the coming years economically productive in your favor and gives you sufficient time to build and retain sufficient coverage by the time your child is ready for the planned goals.

While choosing a child plan, you have to choose the main child plan benefits in such a manner that the complete financial coverage must be ensured at all times. This is where the very crucial factor of inflation comes into play. Inflation is the projected increase in prices of commodities and services over a period of years. All aspects of financial activities witness the impact of this factor of inflation sooner or later and this includes your child’s aspirations as well. For instance, the costs of higher education in India and the costs involved in your child’s marriage will definitely be more than what they are now. Any amount of coverage will therefore, prove to be insufficient if inflation is not taken into account.

The best way is to list out and prioritize the different goals and events for which you are seeking coverage. Once this is done, you must then visit the online portals of different insurers for thoroughly checking and comparing the various plans and their features. This will help you in getting a broad idea about the suitable coverage that you require for your child. You can also seek online consultation from professional experts regarding the total coverage that you must aim for. This will not only ensure that there is due financial reserve at the time of requirement but will also allow you to focus on your child’s development without any financial stress.

HDFC Life offers HDFC Life YoungStar Udaan – a child specific plan that is meant for the future financial guarantee of your child and is formulated to serve as an effective aid for enriching their dreams and aspirations.

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