The cost of education is increasing each and every day and as parents, you may be worried about giving your children the best education. Nevertheless, by planning early you can make sure that your children do not have to give up on their dreams due to a paucity of funds.
A secure future is the best gift you can give to your child. Every parent should plan for the child’s future by investing in health & education plans.
It is also important to keep in mind that you don’t jeopardize your personal financial stability to fund ambitious educational plans for the children. You may examine education loans or self funding by your child beyond a definite level.
One very difficult aspect of securing your child’s education is choosing the most appropriate child investment plans Before buying health or education insurance for your child you should consider some aspects like the rate of premium, inflation rate, and the cost of medical and education.
A child plan with a one-time investment plan gives you the dual benefit of savings and insurance can be the top thing for you and your child in case you happen to crack a good ample deal. Here are some key points while selecting the best investment plans.
Why Is Child Investment Plan Important?
A child insurance policy is an insurance-cum-child savings plan that enables you to build a corpus for the future requirements of your child. Depending on the child savings plan you select, you get a lump sum amount on maturity or periodic funding during the child plan policy. A lump sum amount can be used to meet vital milestones like higher education or matrimonial expenses. Periodic pay-outs give financial support at different stages of your child’s life.
There is generally a benefit of life for the child, a prominent insurance life cover sum assured. In case of the ill-timed death of the policyholder, the child gets this amount as a death benefit. Most child life insurance policies cover an amount of at least ten times the annual premium.
Along with these benefits of child insurance, you also ensure that your child’s policy will not stop suddenly in your absence. Such an investment plan has a tax deduction, financial future security for your child, child education expenses get secured, meets financial goals, and so many more benefits.
As a child insurance benefit, you get the affirmation or self-assurance that after the death of the policyholder, the insurance company will carry on to pay the premiums, and pay the maturity benefit to the child at the end of the child plan term.
Some children’s insurance policies offer a lump sum death benefit as well as the option of a monthly pay-out. This monthly income from the child policy aids in meeting the costs of daily living. Considering all these child insurance advantages, a child insurance investment plan is a realistic diagnostic test that should be a part of your monetary planning for your child.
Investment Strategy for children Investment plan:
You must start by listing decisive goals, such as the child’s desired education and its all expenses. This will help you find out how much you need to save every month and also assess the amount you are able to afford after meeting all your methodical expenses. Though, you must bear in mind that funding studies may also be done using loans. Hence, saving for your child’s education does not have to mean cutting down on other parts, such as healthcare and retirement. As the financial aim gets closer, it is advisable to lessen your equity exposure to decrease the risk of adverse market movements.
One-Time Investment Plan:
There are numerous reasons behind choosing a child insurance policy where you will have to invest only once. There are several benefits to it.
It has minor risk factors than the equity and debt funds. Tax laws of such child plans are straightforward and simple, no stress for future premium payment, one-time premium paid, tax savings, and of course, a vivid future for your child. There are also some other reasons. The reasons are as given below:
The Power To Achieve Their Dreams: Such plans have various benefits, and they allow you to achieve aims that your child and you set together.
Safety of Your Child’s Future: Child plan ensures that with the help of an insurance cover, they are protected even in the event of any untoward incident.
No Impact On the Child’s Goal: Protect child’s goals with the help of an inbuilt premium discount.
Reasonable Financial Aid: Offer multiple risk cover and payout options along with flexible policies and payment terms, which helps in providing you with perfect monetary support.
Tax Benefits: Get tax benefits on the premium you pay, and other benefits as per the current income tax rules.
Benefits Of Buying a Child Plan:
A child insurance policy offers life cover along with distinctive benefits to the policyholder and the child. An organised investment plan will support you and benefit from the rupee price averaging in the unstable market.
Here are the benefits of child life insurance, which should be a prominent aspect of your financial portfolio to keep in mind:
Savings For The Child’s Education: The expense of quality education is rising continuously. Creating a wealth source in the form of a collection that may be available at any stage of your child’s life is prominent, and one that you should focus on. With a child plan, you can pay premiums in flexible installments, and build up a lump sum amount, which can be used to complete your child’s schooling and higher education.
A Corpus For Your Child’s Medical Needs: Depending on the endowment child plan you select, one of the benefits of child insurance is that you acquire a periodic return in the form of a fixed percentage of the total assured.
These assured payouts can be helpful in meeting your child’s requirements at that time. This fundraiser is used to meet your child’s educational costs as well as medical needs when needed.
Financial Protection For Your Child: Losing a parent is a psychological and financial trauma for children, which children do not know how to deal with. While no devising is enough to bring the child’s mood back to normal in the event of such an occurrence, you can ensure that your child remains financially safe no matter what.
Choose the best child plan that offers you a premium waiver benefit, so that in case of the untimely death of the policyholder, the insurance company will be responsible for paying the premium.
The child will not only get the lump sum amount but will also not have to worry about paying a premium in the future. On maturity, the child obtains a maturity amount and bonus to ensure the financial security of your child in case of such a sudden event.
Savings And Insurance With A Child Life Insurance Plan: The best child plans offer a perfect blend of savings and insurance. Not only do you get regularly assured pay-outs to fulfill your children’s dreams, but you also secure your children’s future with comprehensive financial security even in your absence.
Best selling Insurance Policy For Children:
Here are some of the one-time investment policy:
1. Bajaj Allianz Fortune Gain Plan: This Plan is one of the best child one-time investment plan. It is a ULIP plan that can be chosen to secure your child’s future at a minimal cost with the maximum benefits. The plan offers seven funds to select from and also a partial withdrawal facility available.
The entry age is one year to 63 years and the maturity age is 18 years to 70 years. The single premium amount is a least of Rs. 50,000 to the lofty you can invest.
2. Max New York Smart Steps Single Premium: This policy is one the best child one-time investment plan. Max New York Smart Steps Single Premium is an endowment plan drawn particularly to provide for a child’s financial needs.
3. SBI Life Smart Champ Insurance: This plan comes with a single premium payment alternative as well. In the case of a single premium policy under the plan, the benefit amount equals the sum assured value, wherein SA value is higher than basic SA or a multiple of Single Premium.
4. ICICI Pru-Smart Kid Assure Plan: It is among the best child one-time investment plan. This Plan comes with an entry age of 20-60 years and a maturity age of 75 years. The minimal premium required is INR 15,000 and the minimum sum assured is five times the annual premium you opt to pay.
5. Max Life Shiksha Life Super Plan: This Plan has an entry age of 21-50 years, maturity age of 65 years. You will have to endow a minimum premium of INR 25,000/- and your minimal sum assured will be INR 50,000.
6. HDFC SL YoungStar Super Premium: This premium can be bought between 30-60 years with a maturity age of 75 years. INR 24,000 is the lowest premium that you have to pay and your minimum sum assured is subject to underwriting.
7. Birla Sun Life Insurance Vision Star Plus: It is best among child one-time investment plan. It comes with an entry age of 18-55 years and a maturity age of 75 years.
Conclusion: Investment Plan
The journey of parenthood isn’t simple, fairly it is loaded with liabilities. Indeed, parenthood is surely the most magnificent journey as the world envelops the little beloved newborn. However, it adds to your things of responsibility to deal with and satisfy the necessities of the child.
Settle on the timely choice of proceeding with the best child one-time investment plan and be guaranteed that the brilliant fate of the child is monetarily gotten. For what it is valued about the fate of your little one, give your time and purchase the child plan that satisfies your necessities. Somewhat saving is never an absurd idea to buy the best child protection plan on the web, think about the elements and statements and, take the astute choice for the productive fate of the child.
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