As a parent, you can never compromise on the security of your child’s fledgling future. All parents want to provide the topmost opportunities to their children and help them safeguard their career, well-being, and financial reliability.
However, while parents are busy covering the basic necessities of their children, they entirely forget about investment opportunities and child investment plans that can make the process of raising their children easier and much more convenient.
The world is changing at a gradual rate, followed by an exponential increase in the expenditures of education, healthcare, and even marriage. Coupling it with the ever-growing rate of inflation, it has become nearly impossible to fulfill a child’s needs solely based on your day job.
If you’re already aware of the keen rise in expenses and are knowledgeable enough to invest in a child-saving plan at an early stage, you’re at the right place. This article will embark as a comprehensive resource to know more about child investment plans.
Why Must You Invest in a Child Plan?
When it comes to the future wellbeing of your child, having a reliable and growing source of financial help can offer you great peace of mind. As the inflation rate keeps growing, consistent investments in a systematic manner can surely help you bear the future expenses of your child with ease.
Child plans allow you to accumulate a sufficient amount of corpus for your child that allows them to meet their future financial needs such as higher education, marriage, and healthcare. Moreover, these plans also ensure that your children don’t suffer from financial crises in your absence.
There are various child investment plans that provide you benefits of both life coverage and investments. Additionally, a lot of insurance providers also allow you to choose from various optional riders like waiver of premium, partial withdrawal, maturity benefit, and so on.
If you want to provide a good life for your children, investing in a child investment plan is a must. It is the bare minimum that you can do to preserve a financially sound life for your future generations. Therefore, make sure you consider investing in it as soon as possible.
Importance of Child Investment Plans
While there are several investment opportunities available in the market, child plans are crafted specifically to help your child achieve their future goals that require monetary support. Here’s why does a child investment plan matter:
Encourages Savings for Future Goals
A child savings plan brings the best of both insurance and investment. As your child grows older, you’ll realize that their monetary requirements are also increasing. They will require a supple amount of funds for things like marriage, career, and healthcare.
With the help of a child investment plan, you can collect a good amount of money that can be used for all the major expenses throughout the various stages of your child’s life. In case they want to start a business, your collected funds can help them in that too.
Works as a Collateral for Loans
If your child wants to study abroad and you’re looking for an education loan to fulfill their wish, you can use your child’s investment policy as collateral to take monetary help from banks. It is widely accepted by almost all financial bodies.
Provides Death Coverage
Life is unpredictable and nobody knows what could happen next. With that said, in the event of your unfortunate demise, your children can fall into a great financial crisis. To prevent this from happening, you may consider investing in a child investment plan.
In case you die during the tenure of this policy, the remaining premiums will be waived off and your children will still receive the assured lump sum amount. The child can also choose to continue to avail of the coverage benefits through the same plan.
Best Child Investment Plans Available in India
Aegon Life iMaximize
This child plan by Aegon Life is a comprehensive investment policy that features an in-built life cover for the financial security of your children after your unfortunate demise. In the event of your death, the plan provides a waiver of premiums benefit.
This eradicates the need of paying premiums for your child, without compromising on the value and returns promised with the plan. It also includes an income benefit option that provides a fixed amount of money in regular intervals to help your child meet their daily expenses.
Canara HSBC Oriental Bank of Commerce Guaranteed Savings Plan
The Canara HSBC Oriental Bank of Commerce Guaranteed Savings Plan provides assured benefits for the betterment of your child with great flexibility in the selection of savings horizons. The plan assures guaranteed benefits upon its maturity.
Moreover, with just some limited premium payments, you can also avail life cover with this plan. It offers a lump sum benefit and waiver of premium in the event of your unfortunate demise as well. You can even choose from multiple payment terms as per your preferences.
HDFC Life Click2Wealth
The HDFC Life Click2Wealth features one of the biggest fund managers with a size of funds worth 29,000 Crore. It is also considered as one of the best performing mid-cap funds that can provide you a return of up to 14% in a time span of 7 years.
Additionally, this plan also provides a waiver of premium benefit in the event of your unfortunate demise. Through this benefit, your child will receive a guaranteed sum of money to meet their financial requirements in life.
Investing in a child plan ensures that your child enjoys a financially secure future and fulfills all their life goals such as education and marriage. As a parent, this will provide the ultimate peace of mind for you to know that your child doesn’t suffer through monetary problems, even in your absence.