Ask the Expert Series: Post 2020 Budget

Hi Noor, I am a firm believer that the first 2 policies a child need to have is a hospitalization plan and a personal accident plan. These are small budget policies that can take care of big expenses should any little accident/hospitalization occurs. These are also the first 2 policies I took up right after my newborn is born. Education planning is the next on the list. We all want the best for our little ones and provide them with an opportunity to pursue their further education. Personally, I will not want to take excessive risk on investing this education fund. I'd prefer it to be guaranteed or with a very high guaranteed component. Therefore, endowment plans can meet this goal. Most insurers offer flexible education plans (endowment) which offers flexibility in selecting choice of payout and cashback options. On top of that, limited payment options are also available so that we do not have to pay the premiums for a long tenure.