Life

Everything You Need to Know About Child Saving Plans in India

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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 fulfil.

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 you want him/her to pursue higher education from any of the overseas university which currently cost Rs. 20 lakhs or more, then imagine the expense you would have to incur for the same course after 15-20 years. Therefore, it has become imperative to invest in the best saving plan for child today 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. You just need to spend some time over comparing the right plan and calculate the benefits you and your kid will avail in 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. In India, there are mainly two different types of Child policies- Child ULIP and Child Endowment Plan.

  1. Child ULIP

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 future as it provides- Security, Reliability, Flexibility, and Liquidity.

  1. Child Endowment Plan

It is a traditional life insurance plan offering protection and savings as investment benefit. In this, one can choose a sum assured against which the premium is paid. The assured sum is a fix and guaranteed payment on the death of the parent 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 helping them achieve higher studies, in every step a good financial backup is required.

If you are planning for higher studies of your kid in good colleges, then investing in a child plan now is extremely essential. Child plans offered by insurers like Max Life insurance not only help in education planning but also 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, Regular Premium Plan, 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 is paid to the guardian. In the case of early death of the policyholder, the child will receive the financial benefit.

Tax 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).

Conclusion:

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 in making the right investment decision. Remember, building a financially secure future for your family takes time. So, you need to start as early as possible.

About author

I work for WideInfo and I love writing on my blog every day with huge new information to help my readers. Fashion is my hobby and eating food is my life. Social Media is my blood to connect my family and friends.
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