Worrying about your child’s future? These investment options might help

Business
dsprime338 Comments on Worrying about your child’s future? These investment options might help

Investing for your child’s future should be the first thing on your mind today, especially in an environment where rising educational costs and inflation are the norms. Every parent has a wish to give their child the best possible higher education and access to better opportunities. You are no different. However, make sure you take measured steps towards accomplishing the same. Should you choose a ULIP plan for your child? Or should you go for something else? Read on for more inputs that will help.

Skyrocketing higher education costs can no longer be ignored

Families with children can no longer put future educational costs on the back burner. Educational costs have skyrocketed worldwide, and not just in India. According to estimates, an engineering degree that costs almost Rs. 10 lakh is estimated to rise to around Rs. 33 lakh in 10 years. In the same duration, a medical degree that requires Rs. 19 lakh today is estimated to rise to Rs. 66 lakh! Education inflation is on the rise, and you need to draw up a plan to accumulate sufficient funds for your child’s higher education as early as possible.

Some of the popular options are investing in mutual funds, ULIPs, PPF (Public Provident Fund), Bank Deposits, etc. From these, ULIPs have a variety of options, from equity, debt, balanced, and liquid funds. These offer different returns on investment and have varying degrees of risks. Now, assuming that you have started planning early, you would currently have around 15-18 years for your child to go off for higher studies. This gives you sufficient time to invest in special ULIPs called child plans. Let’s learn about them in detail.

Child plans and how they help

Child plans help parents invest in a disciplined manner to secure the future goals of their children. These plans help accumulate a future corpus for children. These are investment plus insurance plans where parents can start saving for future milestones in their kids’ lives. These plans are tailored to ensure lump sum payouts or periodic payouts after a specific duration.

You can smartly invest in a child plan to ensure that the maturity period for the same is right around the timeline when your child is about to enter college or venture out to study abroad. These plans can also help cover the wedding costs for children. The returns from these plans may also help children professionally in terms of starting on their own or making investments for future goals.

What are the various types of child plans available?

There are several kinds of child plans that are available, and two of the most popular ones include:

  • Child ULIPs – These ULIP plans come with a combination of investment and insurance. While helping accumulate wealth through investments, they also come with a sum assured payout to the policyholder’s child or nominees in case of the policyholder’s untimely death within the policy period. The child or the listed nominee, will get either a lumpsum amount or regular periodic payments, depending on the policy’s terms. Additionally, some ULIP child plans also offer the option of a premium waiver in the event of the policyholder’s untimely death. These plans ensure that payments are made on a regular basis to support your children’s education.
  • Child Savings Policies – These are endowment or child insurance policies. They offer a combination of savings and life coverage. The investment is deployed in low-risk instruments, including government bonds and fixed deposits. The corpus accumulates throughout the policy period while there is a sum assured in case of the policyholder’s untimely demise within the policy tenure. One important aspect of child endowment policies is that the payment of the sum assured is guaranteed upon the passing of the parent i.e the policyholder in this case, or when the plan reaches maturity. The payout from the policy can help your children finance their higher education. These plans come with lower risk levels and are suitable for more conservative or completely risk-averse investors. They also come with tax benefits like ULIP plans.

Why you may consider ULIPs

A ULIP plan could be a good option for your children’s requirements. Some of its benefits include the following:

  • As per your risk tolerance, you can select the types of funds you wish to invest in.
  • ULIPs can help you meet the cost of your child’s education. The accumulated corpus can be utilised to fund your child’s education.
  • ULIPs can help you meet the child’s immediate and future financial requirements, as you get life coverage for a guaranteed sum assured in case of your demise within the policy tenure. This can benefit your children in your absence.
  • ULIPs provide Tax benefits up to Rs. 1,50,000 under Section 80C, along with Section 10 (10D) which makes the returns tax-free.
  • There are options for switching funds depending on the market scenarios.
  • Partial withdrawal facilities are usually available after a 5-year lock-in period.

You can use a ULIP calculator to work out the premium payable and the amount you can estimate in returns. This could be a good option to build a future corpus for meeting your child’s higher education and other costs while securing your family’s financial future with life coverage at the same time.

Why you may consider Endowment Plans

Child Savings Plans are also excellent investment choices for parents who want to secure their children’s future. The advantages are described below.

  • There is far less risk involved as these are non-linked products.
  • These policies, which are also child insurance plans, give you a life insurance benefit that may come in handy if you pass away before the policy term ends.
  • Child savings plans also provide tax exemptions for premium payments made under Section 80C of the Income Tax Act of 1961. Furthermore, the benefits or returns earned are tax-free under section 10(10D) of the Income Tax Act of 1961.

Conclusion

It is crucial to have a better understanding of your life goals before investing in a child plan. This assists you in determining the amount of corpus required to fulfill your commitments to your children. In addition, because most child plans are long-term investments, you must also account for inflation. After you’ve considered these crucial factors, you’ll be better positioned to make an informed decision about the type of plan to implement to protect your child’s future. You could also contact your Insurance Consultant/Advisor for customized options based on your life stage, circumstances, and aspirations.

If you have any objection to this press release content, kindly contact [email protected] to notify us. We will respond and rectify the situation in the next 24 hours.

dsprime

https://financialpost.co.in

Related Posts

Sarees of the East

dsprime

A delivery app designed for the Indians by a women entrepreneur, Hema Khuswaha, founder of Delivery Pigeon, to connect people

dsprime

Sikich announced Nov. 17, 2022 the signing of a definitive agreement to acquire Accelerated Growth, an accounting, finance and technology consulting firm based in Chicago

dsprime

338 thoughts on “Worrying about your child’s future? These investment options might help”

  120. Oh my goodness! Incredible article dude! Thank you, However I am going through troubles with your RSS. I donít
    understand why I am unable to join it. Is there anybody else getting identical RSS problems?
    “성인망가” Anyone who knows the answer will you kindly respond? Thanx!!

  122. Hey very cool site!! Man .. Beautiful .. Amazing .. I will bookmark your website and take the feeds also…I’m happy to find so many useful information here in the post, we need develop more strategies in this regard, thanks for sharing. . . . . .

  123. My brother suggested I might like this web site. He was entirely right. This post actually made my day. You can not imagine simply how much time I had spent for this info! Thanks!

  128. Thanks , I’ve recently been searching for info about this topic for ages and yours is the best I have discovered so far. But, what concerning the bottom line? Are you certain concerning the source?

  131. You have observed very interesting points! ps decent web site. “The world is dying for want, not of good preaching, but of good hearing.” by George Dana Boardman.

  140. Oh my goodness! Incredible article dude! Thank you, However I am going through troubles with your RSS. I donít
    understand why I am unable to join it. Is there anybody else getting identical RSS problems?
    “성인망가” Anyone who knows the answer will you kindly respond? Thanx!!

  147. it is a really nice point of view. I usually meet people who rather say what they suppose others want to hear. Good and well written! I will come back to your site for sure!

  152. My coder is trying to convince me to move to .net from PHP. I have always disliked the idea because of the expenses. But he’s tryiong none the less. I’ve been using WordPress on numerous websites for about a year and am nervous about switching to another platform. I have heard great things about blogengine.net. Is there a way I can import all my wordpress posts into it? Any help would be really appreciated!

  160. My brother suggested I might like this web site. He was entirely right. This post actually made my day. You can not imagine simply how much time I had spent for this info! Thanks!

  172. If you’re looking for a reliable and affordable power supply provider, look no further than 365PowerSupply.com. This company is a true professional in the power supply trading and wholesale industry, with a focus on providing replacement power supplies for popular brands such as Dell, HP, Lenovo/IBM, and server workstation components. Their commitment to quality and customer satisfaction is unmatched, making them a top choice for businesses and individuals alike.

  173. I dont think Ive caught all the angles of this subject the way youve pointed them out. Youre a true star, a rock star man. Youve got so much to say and know so much about the subject that I think you should just teach a class about it

  177. It’s the best time to make some plans for the future and it is time to be happy. I’ve read this post and if I could I wish to suggest you some interesting things or tips. Maybe you can write next articles referring to this article. I wish to read even more things about it!

  188. of course like your web-site however you have to check the spelling on several of your posts. Many of them are rife with spelling problems and I find it very troublesome to tell the reality then again I will surely come back again.

  202. Thanks , I’ve recently been searching for info about this topic for ages and yours is the best I have discovered so far. But, what concerning the bottom line? Are you certain concerning the source?

  209. With havin so much content do you ever run into any issues of plagorism or copyright violation? My site has a lot of completely unique content I’ve either authored myself or outsourced but it looks like a lot of it is popping it up all over the internet without my agreement. Do you know any ways to help stop content from being ripped off? I’d truly appreciate it.

  211. Good post. I study something more difficult on different blogs everyday. It’s going to always be stimulating to learn content material from other writers and observe a little bit one thing from their store. I’d prefer to use some with the content material on my blog whether you don’t mind. Natually I’ll give you a link in your web blog. Thanks for sharing.

  216. Thanks for another great post. Where else may anybody get that type of info in such an ideal way of writing? I have a presentation next week, and I’m at the search for such information.

  227. Great blog here! Additionally your website rather a lot up very fast! What host are you the usage of? Can I get your associate link for your host? I desire my website loaded up as fast as yours lol

  229. I am not sure where you’re getting your info, but great topic. I needs to spend some time learning much more or understanding more. Thanks for wonderful information I was looking for this information for my mission.

  236. I’ve been surfing online more than 3 hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. In my view, if all web owners and bloggers made good content as you did, the net will be much more useful than ever before.

  249. Howdy I wanted to write a new remark on this page for you to be able to tell you just how much i actually Enjoyed reading this read. I have to run off to work but want to leave ya a simple comment. I saved you So will be returning following work in order to go through more of yer quality posts. Keep up the good work.

  251. I don’t even know how I ended up here, but I thought this post was great. I do not know who you are but certainly you are going to a famous blogger if you are not already 😉 Cheers!

  257. Hi, possibly i’m being a little off topic here, but I was browsing your site and it looks stimulating. I’m writing a blog and trying to make it look neat, but everytime I touch it I mess something up. Did you design the blog yourself?

  268. I’ve read several good stuff here. Definitely worth bookmarking for revisiting. I surprise how much effort you put to make such a magnificent informative site.

  269. I think that may be an interesting element, it made me assume a bit. Thanks for sparking my considering cap. On occasion I get so much in a rut that I simply really feel like a record.

  271. Great – I should certainly pronounce, impressed with your website. I had no trouble navigating through all tabs and related info ended up being truly simple to do to access. I recently found what I hoped for before you know it at all. Reasonably unusual. Is likely to appreciate it for those who add forums or something, site theme . a tones way for your client to communicate. Nice task.

  278. It is actually a great and helpful piece of info. I’m satisfied that you just shared this useful info with us. Please keep us informed like this. Thanks for sharing.

  289. Sweet blog! I found it while browsing on Yahoo News. Do you have any tips on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Thank you

  296. I like to spend my free time by scanning various internet resources. Today I came across your website and I found it has some of the most practical and helpful information I’ve seen.

  300. Dignity College of Healthcare online surgical technician training is far superior to other online Surgical Technician programs because it includes the training, exam review and national certification exams. Register with Confidence and attend a nationally accredited, but affordable program. In just 4 months, you can complete the surgical technician program from the comfort of your home without a loan on your neck. Enroll now at https://dignitycollegeofhealthcare.com/surgical-technician

  301. Hey, I simply hopped over to your website by way of StumbleUpon. No longer one thing I’d normally learn, but I preferred your thoughts none the less. Thanks for making one thing worth reading.

  302. I discovered your weblog site on google and verify just a few of your early posts. Proceed to maintain up the very good operate. I simply further up your RSS feed to my MSN News Reader.

  308. I’ve been surfing online more than 3 hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. In my view, if all web owners and bloggers made good content as you did, the net will be much more useful than ever before.

  310. I think I will become a great follower.Just want to say your post is striking. The clarity in your post is simply striking and i can take for granted you are an expert on this subject.

  311. hi / hello there
    i have learn several just right stuff here. “성인웹툰”Definitely value bookmarking for revisiting.
    I wonder how so much effort you place to make one of these fantastic informative web site.
    thank you i love it.

  314. Link building is a crucial component of SEO that involves acquiring hyperlinks from external websites to your own. These backlinks serve as endorsements for your site, indicating its credibility and authority to search engines. There are various methods for link building, including natural links, outreach and guest posting, content creation, and promotion. Natural links are earned when other websites voluntarily link to your content due to its value. Outreach and guest posting involve collaborating with other website owners and bloggers to create content and gain backlinks. Creating exceptional content and promoting it can also attract backlinks from other sites. Link building plays a vital role in improving search engine rankings and increasing visibility for your website.

  321. Secured Trust Escrow is one of the few companies licensed by the Department of Financial Protection and Innovation to handle Holding Escrows. Holding Escrows do not involve the transfer of real estate or a business under the California Bulk Sale Laws. Secured Trust Escrow has been the “go-to” escrow company for attorneys and other professionals needing a third-party escrow holder to hold funds pursuant an agreement made outside of escrow. Secured Trust Escrow has handled many holding escrows, both simple and complex, from a wide range of industries such as entertainment, legal, receivership’s, judiciary, source code, private money, and source code. https://securedtrustescrow.com

  322. Our mission is to provide our customer’s with integrated security solutions within a rapid response time to exceed your security needs. Our fully trained uniformed guards are available armed and unarmed, 24 hours a day, 7 days a week. All of our security guards are 100% certified. Our security guards are put through rigorous training to handle any security post assigned to them. Our guards are CPR/AED/First Aid certified. At XpressGuards, we provide professional security solutions customized to fit each individual client and business. Call now to get started. https://xpressguards.com

  323. Hey, I simply hopped over to your website by way of StumbleUpon. No longer one thing I’d normally learn, but I preferred your thoughts none the less. Thanks for making one thing worth reading.

  327. If you want to grow your know-how only keep visiting this
    website and be updated with the most up-to-date gossip posted here.

    Feel free to surf to my webpage: mp3juice

  333. Hello, i feel that i noticed you visited my website so i got here to return the desire?.I am trying to in finding things to improve\r\nmy website!I suppose its adequate to make use of a few of\r\nyour concepts!!\r\n\r\nCheck out my website : ytmp3

Leave a Reply

Your email address will not be published. Required fields are marked *