Every parent carries a responsibility to secure their kid’s life in all sense. Right from completing their education to marriage, in every step, assisting them financially is one of the responsibilities parents have to fulfill.
However, in today’s lifestyle, it has become challenging to save money and secure the future. Nevertheless, it is essential to be ready for any circumstances, which is only possible with proper investment planning. A well-researched and lifelong financial investment plan for your kids can help in every step of their growth. Thankfully, with the availability of suitable child plans in India, you have enough options to keep your child’s life secure.
In-Depth of Child Investment
Investment plans are becoming crucial to meet the financial needs of children’s education and life. They allow continuous cash inflow during the crucial stage of your child’s life, including schooling, higher education, marriage, business, etc.
For instance, if you have a five-year-old kid and want him/her to pursue higher education from any overseas universities that currently cost Rs. 20 lakhs or more, imagine the expense you would have to incur for the same course after 15-20 years. Therefore, it has become imperative to invest in thetoday to get a higher benefit tomorrow.
With both the government and private financial institutions in India offering multiple child investment plan options, your job is now easier. It would help if you spent some time comparing the right plan and calculating the benefits you and your kid will make in the future.
You can either invest in health insurance, education, or overall coverage for their future. It entirely depends on your ability to pay the premium of the plans. There are mainly two different types of Child policies in India- Child ULIP and Child Endowment Plan.
Unit Linked Insurance Plan (ULIP) is a market-linked product offering both investment and insurance. This plan is linked to the capital market, offering flexibility to invest in equity or debt funds. This could be beneficial for your kid in the future as it provides- Security, Reliability, Flexibility, and Liquidity.
2.Child Endowment Plan
It is a traditional life insurance plan offering protection and savings as an investment benefit. In this, one can choose a sum assured against which the premium is paid. The assured sum is a fixed and guaranteed payment on the parent’s death or when the child achieves maturity.
Importance of Child Investment Plans
As mentioned above, the future is uncertain, and every parent must be well-prepared in every way to secure the future of their kids. Right from fulfilling their needs to achieve higher studies, a good financial backup is required in every step.
If you plan for higher studies of your kid in good colleges, then investing in a child plan now is essential. Child plans offered by insurers like Max Life insurance help in education planning and provide funds for your child’s marriage and other events. Moreover, if any unfortunate incident happens, you can still be confident that your child’s future will be taken care of in your absence.
Advantages of Opting for Child Insurance Plans
Whether you go for Child ULIPS,, Single Premium Plan, or any other plans, you will have multiple benefits:
- Flexibility to Choose
You have the flexibility to select among different funds (equity, debt, or balanced) according to your risk-appetite needs and budget.
- Maturity Benefit
During maturity, the sum assured amount and the partaking sum are paid to the guardian. In the case of the early death of the policyholder, the child will receive the financial benefit.
This is the biggest advantage of investing in a child plan. Child investment plans offer tax benefits on the death claim under Section 10 (10D) and premiums paid under Section 80(C).
When your goal is to secure your child’s future, you need to look for long-term investment options. Taking free insurance quotes and advice online and offline from leading insurers could help you make the right investment decision. Remember, building a financially secure future for your family takes time. So, it would help if you started as early as possible.