If you’re like most parents, you want your child to have the best life possible. In India, the culture has been such that children, fulfil their parents’ unrealised dreams. Be it studying in a good school, attending a prestigious college, and maybe even graduating from a foreign university. These things are at the top of every parent’s mind when they plan for their child’s future. Today, this culture is being disowned as more and more parents have started adopting the idea that children should be left free to make their own choices and decisions. But, whatever the case may be with you, in both the scenarios, it is important to save money for your children.
A child plan, allows you to do just that. They are savings and investment plans which help accumulate corpus for your child and also provides life insurance cover. There are a lot of different plans you can choose for your child, and each one has its own benefits.
- A money back plan is a savings plan that guarantees benefits at regular intervals of your child’s age. In this plan, your child receives periodic payouts at regular intervals that can be aligned with his/her different stages ofcareer.
- Another variant of savings plan called endowment plan gives your child a lump sum amount after the policy period is over.,
These two plans provide safe investment options for your child’s future, and ensure your child’s financial safety and future is protected.
- If want to earn market linked returns, other plans such as the unit-linked plan can be a suitable option. It gives the child a one-time amount in case of an unfortunate event like the death of the parent. It guarantees a lump sum amount to the child nominee on the death of the parent. Additionally, some variants of this plan also provides the child with a fixed yearly income for the remaining duration of the policy, and pays all future premiums in order to continue the investment.
The plans are many, and which one to choose is highly dependent on the parents, their income, the way they want the payout to be received by their children, and how much they want to save. In a rapidly developing nation like India, the opportunities for growth are too many, as is the number of candidates for those opportunities. And more often than not, the difference between the one who seizes the opportunity and the one who loses, could be of merely the reputation of college they attended, or the extra-curricular activities they were involved in. Therefore, the right schooling is important, as it helps your child gain the necessary edge over others. After all, who doesn’t want their children to become the best version of themselves?
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