Which is the best plan to secure your child?s financial future?

Posted by ankita on November 29th, 2016

As parents we always wish to offer the best for our children. Apart from good lifestyle, we look forward to give them best education facilities, career opportunities and more so that they can achieve their career goals. But the given challenges and competition in the field of education today, it has become important that you choose proper investment channel for your child’s secure future.

Child insurance plans offered by insurance companies serve two purpose of financially securing your child’s future through life cover and offer necessary finances for the turning points in his or her life such as higher education and marriage. Thus, the dual benefits product is the best child plan designed to protect the future of your child in case of your unfortunate demise and at the same time, builds a corpus over a term to be utilized to financial prime moments of life.

These plans are tailor made to meet the future financial needs of your children. A sum invested regularly in the plan can help accumulate a corpus that will secure your child’s financial future. Amount of income to be contributed depends on how much you plan to save. It is advisable you can talk to your financial planner who will assist in chalking out an ideal financial plan that will meet your child’s requirement time-on-time basis.

Inflation and your rising living standard usually affect the decision about where you send your children for higher education.  Since these are market-linked funds there are many options available to the investor – from conservative to aggressive. A child plan can let you invest your money in equity, debt or balance funds as per your choice and requirements.

While buying a child insurance plan first decide on the term of the plan depending on your child interest and needs. Calculate the amount of money needed. If the term is less than say 8 or 10 years go for debt oriented funds as it will give your safer returns. If the term is more than 8 to 10 years you can go for aggressive funds, try to book profits and slowly shift them to debt oriented funds for safer returns when required. Sit with your financial planner and decide on the amount of life cover needed. Compare various child insurance plans online before you finalize and then select the one best suitable for your requirement and most importantly fits into your budget. Keep a tab on the performance of your funds and whenever required switch them for better results. When you’re nearing the targets, move to them to debt investment options.

At the end it’s not about the personal benefits that parents look for when investing in child plans. As a parent you will always want to create ample shield of securities around the future of your child. A good child plan will yield high returns with every growing stage of the child. Purchasing child insurance plan is like creating a foster family who will fulfill your child’s dream in case you meet with untimely loss of your life.