Method of saving money for Children Plan in India

Our kids are our most noteworthy god’s gift and with regards to them, we never stay disconnected. We always try that our kids are raised with the most extreme care, get the best in nutrition, get the best of education and have a luxurious life. Having high dreams for our kids is a typical wonder yet meeting such desires is a troublesome undertaking. In today’s economy where the costs of regular merchandise and ventures are soaring, having adequate reserve funds is a daunting task. This is why it becomes mandatory to plan for your child’s future in a strategic manner to avoid any troubles in future.

Why Should You Plan Now?

Parenting has become tougher than what it used to be few years ago. From astronomical costs of college education to cut-throat competition in academic world, there are a lot of challenges the parents have to face. On the top of that, uncertainties related to existing career options further make the parenting a bit challenging task. That’s why a proper planning in terms of child’s future becomes a primary responsibility of a parent.

Taking support of saving plans that reap great benefits is also essential to ensure that you are able to handle the expenses related to wedding and education of your child. Choosing the right investment plan related to children makes sure that there is no negative impact on child’s future in an event of a death of a parent.   All these factors show planning within the first month of child’s birth is the best thing we can gift to the next generation.

Factors to Consider before Choosing the Best Child Insurance Plan

Many insurance companies offer investment plans and distinctive assortments of child care plan that are accessible in the market today. It turns out to be exceptionally troublesome for an individual to settle on the right purchasing choice. Moreover, after that purchasing the Child insurance Plan, managing it becomes another difficult task. Here are a couple of pointers which would help you in contrasting between the accessible plans:

Expected Requirements

This factor helps you identify what goals you are aiming while choosing a plan. The major needs include healthcare, education and marriage of your child. All these needs will help you predict the time and year during which the funds will be required.

Flexibility of the Plan

If you choose a plan that is rigid in nature, you might face some challenges before the maturity of the plan. It is a wise idea to select a plan that allows partial withdrawals. This way, you will be able to manage different types of expenses. This also lets you attain the advantages of volatile market conditions.

Plan Benefits

Each plan features a unique set of benefits associated with maturity of the plan, death of the parent or loyalty benefits. Several plans also carry tax benefits that can prove beneficial during the course of investment.

Premium Rates

A plan at first glance may sound promising, but its top-notch premium rates might impact your budget. It, therefore, becomes vital to analyze the rates of every plan shortlisted from your end. You must also check the parameters like premium payment mode, minimum & maximum annualized premium, along with the sum assured.

Best Child Investment Plans:

1. Bajaj Allianz Young Assure Plan

  • Multiple premium payments and policy term options to ensure that money is available to you during crucial stages, like child’s education, marriage, etc
  • Guaranteed Maturity Benefit (GMB), Guaranteed Additions (GA) and bonuses to ensure a good return
  • 3 Cash Instalment Options to choose from to match the future financial needs

2. Max Life Shiksha Plus Super Plan

  • This plan offers exhaustive Life Insurance scope, including family income benefit
  • Subsidizing of Future Premiums in an event of Death of the Life Insured to guarantee that your fantasies for your kid stay in place
  • You have the alternative to pick Policy Term as per your need, i.e. 10 years or any term between 15 to 25 years.

3. SBI Life Smart Scholar Plan

  • Secure your child’s future by picking up from the budgetary markets.
  • Double insurance for your family
  • Inbuilt Premium Pay or Waiver advantage to guarantee duration of your arrangement

4. HDFC Child Plans

It is further divided into variants.

a) HDFC Child YoungStar Udaan Plan

  • Its USP is three maturity benefit options and two death benefit options
  • Individuals can choose the policy term in the range of 15-30 years as per the needs.

b) HDFC SL YoungStar Super Premium Plan

One of the most flexible plans with funds to choose from:

  • Balanced fund
  • Blue chip fund
  • Income fund
  • Opportunities fund
  • Flexibility to choose the sum assured and premium amount

Features and Benefits:

Some common benefits of these plans:

  • Each of these plans comes with guaranteed maturity benefits in an event of the death of the parent
  • Tax benefit is accessible under 80C when some guaranteed no less than 10 times yearly premium
  • Each of these plans comes with loyalty benefits or bonuses
  • The individuals are able to assure a sum without any maximum limit.

Conclusion:

As we urge our little ones to be driven and never settle for the standard, as guardians we likewise do our best to turn the dreams of our youngsters into reality. Their objectives today are greater than any time in recent memory and accomplishment requires significantly more concentration. Since life is loaded with vulnerabilities and as responsible guardians, we would likewise need to guarantee that this need is dependably met, whether we are around or not. Thus as parents, we have to prepare, and furthermore, deal with the expanding expense of learning and skill development.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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