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Being a parent, you spend most of your time worrying about your child’s future. It is mostly triggered by the primary concern over your ability to finance your child’s aspirations and dreams. Saving and investing for children’s education and marriage is one of the most crucial financial goals for parents.
When it comes to planning your child’s future, you need the best investment plan for financial security. With the education costs skyrocketing, you must begin planning for your child’s future as soon as he/she is born. Before choosing the right investment product, make sure you explore your options and make a prudent decision.
Why and Where Should you Invest?
We all mostly have a single and stable source of income which may seem enough today. However, when you look at the long term and consider the rate of inflation, you’ll realize that you may have to struggle to afford quality education and lifestyle for your child. Being a family man, you have several different needs and goals that require substantial financial support. It is why you must have the best investment plan in place for your child’s bright future.
Before putting your money in different investment opportunities, it is advisable first to determine your goal and estimate the amount of money that your child will need. Make sure you invest according to your budget and risk appetite. You must maintain the right balance between saving and investing while planning your child’s future. A child insurance plan is the best investment plan in today’s time. It is a combination of both insurance and investment that ensures a secure future.
How will a Child Insurance Plan Secure your Child’s Future?
Child insurance is the best investment plan, as it is the perfect blend of investment and savings in a single policy. It safeguards your child’s future even after your demise and ensures that their dreams are fulfilled. The best investment plan in India helps you make long term savings by inculcating discipline. Therefore, investing smartly in a child plan is essential to achieve your goals in life without any unnecessary stress and worries.
Below are a few child investments plans that you can compile in your financial portfolio:
- Sukanya Samriddhi Scheme
The Sukanya Samriddhi scheme was launched by the Government of India for the sole purpose of promoting the education of girl child. If you have a daughter, this scheme can be beneficial for you, to invest and include in your child plans. However, you can only apply for this scheme at any time from the birth of your daughter, till she turns 10.
The minimum amount that you can begin with is Rs.1000 and maximum is Rs.1.5 Lakh per year. The maturity period is 21 years from the date of opening the account, and deposits can be made for 14 years. You can also enjoy tax exemption under Section 80C of the Income Tax Act under this scheme. You are also allowed to make partial withdrawals after your child crosses 18 years of age.
- Term Insurance Cover
The right term Insurance cover can be the best investment plan for your child’s future. It will help you secure your child’s future against the uncertainties of life. Your child insurance plan must consider three things – education, marriage and lifestyle expenses to figure out the future needs of your child for an adequate cover. For a more precise calculation, you must use the insurance premium calculator available online and determine the related costs quickly.
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Unit linked insurance plans are a smart way to secure your child’s future as well as insure them against unforeseen events. Moreover, ULIPs also help you make returns from stock market investments. ULIPs are therefore also known as hybrid insurance instruments that allow a portion of your premiums to be invested into the market to generate substantial returns. ULIPs are a great option to invest in for your child as it helps you and your child achieve their life goals efficiently and even in your absence.
Remember to Start Early and Diversify
The rising inflation makes financial planning all the more essential for child education, career aspirations and many other crucial phases of life. The best investment plan in India will enable you to build a corpus sufficient for the future of your child.
Child insurance plans offer a comprehensive and affordable way to secure your child’s future. You can also consider different short term investment plans with tax benefits to meet your lifestyle goals. Make sure to diversify your portfolio for maximum returns and minimum losses.