New Delhi: With costs of education soaring, securing a child’s future is a key responsibility that modern parents have. Buying insurance is one of the primary instruments to secure that future. Prominent insurance companies offer child’s plans. The most important feature of any insurance plan is the premium that the buyer has to pay.
The premium can be determined by using the calculator that are available free online. A prospective customer has to type in a few key parameters and the calculator tells the individual as to how he/she can reach the desired financial goal for his/her ward. It tells the policy buyer the pool needed, duration of investment and expected rate of return.
HDFC Life Child Insurance Plan Calculator
Let’s turn to an education planner for your child available with HDFC Life. You will first need to type in a few details to find a solution. Say, the current age of your child is 5 years. Say the child’s age when the course starts will be 18 years. Then it will ask you to cost of education at the current price, which is say Rs 50 lakh. Then, you will be asked to key in how much you have saved so far. Say, you have saved Rs 1 lakh for his/her education. Then it will assume a 5% rate of inflation and a return on investment of 8%. And then it will come up with the figure that you need to save Rs 27,308 per month to reach that inflation-adjusted figure when the kid turns 18. Accordingly, one can buy a life goal plan for your child.
Bajaj Allianz child insurance plan calculator
The calculator available with Bajaj Allianz tells one that if a child needs Rs 10 lakh in 20 years, the parents need to invest Rs 3,665 a month from now. The assumptions are the inflation rate is 5% and the rate of returns on investment is 10%. Based on this calculation, Bajaj Allianz recommends a particular policy suitable for this financial goal. The premium paid for a child’s plan is eligible for income tax benefits up to Rs 1.5 lakh a year under Section 80C of the Income Tax Act 1961.
Selecting an insurance plan to secure your kid’s future is a primary responsibility of any parent. A child plan calculator helps you in this quest. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
