As parents, you must do all possible to ensure your child’s future. The sooner you plan, the more you invest, and the more you contribute to a child’s bright future. You don’t have to be concerned about your child’s future if you invest in Child saving plans since it is one of the finest methods to preserve and safeguard your child’s future during tough times.
Child education plans are intended specifically for children to help them meet their financial requirements in the future. Child saving plans provide both insurance and investment opportunities. These programs aid in accumulating an investing corpus, which assists youngsters in reaching significant milestones in the future. There are options like Child Money Back Plans to invest in, which gives great benefits and helps secure a bright future for your child.
Child saving plans offer you a lump sum amount as the sum guaranteed at policy maturity, plus additional benefits that cover your child’s education expenditures such as school fees, tuition fees, and marriage expenses. A child education plan provides you with a diverse range of interesting investing possibilities for your child’s bright and secure future.
Child saving plans provide you with a variety of features to satisfy your child’s financial needs in the future.
In this post, we will go over some of the characteristics of a Child Insurance Plan in order to help you make an educated choice before acquiring one.
1. Long-Term Investment Option
A child education plan provides both short-term and long-term investment programs, depending on your preferences. A good saving plan for a kid will include long-term investment alternatives or assets such as equity funds. The longer the investment plan, the greater the payoff at maturity.
2. Goal Protection
Child Insurance Plan gives you the option of Objective Protection, which includes the goal of supplying your child with further education and other necessary expenditures even if you are not there. It not only offers a life insurance payout in the event of the insured’s death, but it also continues to invest. The plan will mature on the maturity date and deliver maturity value to the policy’s nominee in the event that anything bad occurs to the insured.
3. Partial Withdrawal
Partial Withdrawals are available in many Child Life Insurance Plans. Using this service, you may withdraw a set sum from your fund value many times over the plan’s lifespan. The partial liquidity capability will be available only once your kid reaches the age of 18.
4. High Returns
Child saving Plan returns may be as high as 12%, which is higher than the long-term inflation rate. Child Insurance Plans not only to safeguard your investment from eroding, but they also aid in the quicker development of assets.
5. Choice of Funds
Child education plans provide you with the freedom to choose from various fund types, such as equities, money market, debt, and so on, according to your needs. However, you can move between funds after a certain length of time.
6. Premiums Waived
A premium waiver benefit is offered with child life insurance, which may be very helpful in tragic situations such as the loss of a parent during the policy’s term. Under this benefit, all past-due payments are forgiven, and the insurance remains in force. The child will get the death benefit/maturity benefit when they reach the age of 18 or when the plan matures, whichever comes first.
7. Maturity’s Benefit
Maturity incentives are provided at the conclusion of the policy term in child life insurance plans. Parents may choose a maturity date according to their child’s future financial requirements. Your corpus grows as you continue to invest in your child’s future dreams and build a corpus to pay those costs.
Best Child Investment Plans in India
Here are the best saving plans for children in India with high returns that you should be aware of in order to prepare for your children’s future needs:
1. Child Insurance Plans
Kid insurance plans may be your best choice if you’re seeking the greatest long-term investment plan for a child. They are a mix of insurance and investment that ensures your child’s future in the case of your untimely death. These plans invest a part of the premium in order to achieve above-average returns that are repaid at maturity.
2. Gold ETF/Funds
Gold is a great asset and a wonderful present for her marriage. Therefore this may be the most practical investment choice for parents with female children. Rather than purchasing gold directly, you might invest in gold funds or ETFs, which are traded on the stock exchange electronically.
It is no need to hire lockers or be concerned about theft when acquiring gold online. When gold prices are high, you may decide to sell your gold ETF units and utilise the proceeds to purchase actual gold.
3. Fixed Deposits (FD)
The conventional savings model is also one of the most excellent long-term investment strategies, particularly for consumers concerned about the security of their money. You may create a fixed deposit account in any bank with a set sum for a lengthy period of time, such as three, five, or ten years, at a fixed rate of return ranging from 3% to 6.5 per cent each year.
At the conclusion of the term, the capital and interest may be withdrawn. While the investments are secure, the lack of liquidity is the primary disadvantage since there is no option for early withdrawal.
4. Sukanya Samriddhi Account (SSA)
Are you seeking the ideal long-term investment for your female child? The Indian government’s investment plan would enable you to save for your female child’s life phases, such as schooling, marriage, etc. With a minimum of Rs 1000, one may begin saving in an account that earns an interest rate of 7.6 per cent and matures when she reaches the age of 21.
5. Public Provident Fund (PPF)
It is comparable to the Employee Provident Fund (EPF), available to paid employees. However, PPF is accessible to the entire public and may be created by anybody. While PPF investments have a 15-year lock-in period, the interest rate is greater than that of a savings or fixed deposit account. Aside from the savings, one of the most noticeable advantages of investing in the PPF program is the tax benefit that may be claimed under Section 80 C.
Wrapping It Up
Purchasing saving plans for your children is a complicated process. Before you buy it, you should think about the things listed above. An ideal child education plan should feature partial withdrawals, which allow you to withdraw an amount several times, long-term investments, which increase returns, and goal protection, which takes care of your child’s financial requirements while you are not there.