by Animesh p
Published Thu, Mar 16th 2017, 16:43 | Other
When As life is this uncertain it is always good to be prepared for the worst. To be prepared for the worst, one has to start investing for a secured future. A working person who works wants to make it sure that he safeguards the future of his children so that in case of any uncertainty, the children have financial support and do not get stranded . As a parent, if you want a better future for your child you need to must start investing today. to secure the future of your children . So iIf you start investing systematically today, you will have sufficient funds for their higher education , marriage , career prospects and or business set-up . There are loads of instruments available in the market which have offers guaranteed returns, you just need to check calculate your needs and select a child plan that caters to your needs .
A child plan not only gives financial security to your child when you are not around but also ensures that their needs are financed at the right age at the right time by building adequate funds over a specified period of time. On your death, your child is entitled to a lump sum amount and the policy does not terminate. The future premiums are waived off and the insurance company continues to invest the money on behalf of the policyholder.
While Before investing in a child plan, understand that you don’t have readymade cash available with you to invest directly into funds. Hence, you have to build the capital over the years so that when you choose for a child plan you have enough years sufficient time in your hand and you can to save a good amount of money . Suppose For instance, if you start investing when the child is in preschool you will have 17-18 years so you have a good amount of money adequate funds at the maturity of the child plan .As an your investment duration is longer, individual has good amount of time he you can be a bit aggressive experiment while with the portfolio selection and can invest a part of the his yearly savings for in equity investment tools . This totally depends on an individual and his/ her risk appetite. , also some investment needs to be done in assets like gold. The ever increasing inflation has hiked the cost of education, standard of living hence, we need a medium which will factor with the inflation and give returns over and above that.
A good plan that has popularly emerged in the market is the child insurance plan which is investment-cum-insurance plan offered by insurance companies similar to ULIP. A child plan offered by insurance company is when parents invest from the birth of the child and can withdraw these savings once he turns an adult .Just in case the parents meet with any uncertainty the child plan is able to provide life cover to the child and a lump sum amount is also paid to the child. This will continue till the maturity of the child plan and the premiums will be paid by the insurance company this feature is called as waiver of premium.
Following are the benefits of buying a child plan :
• A child plan is a full proof solution to the concerns about the future of your child promise of financial security for your child’s future
• Its helps in safeguarding and securing your child’s needs in future. the child can live the life of his he wants choice and fulfill his dreams.
• A child plan enables the child to pursue his desired education without compromising on his needs The child is able to choose for the education he wants to pursue and the child plan will also assist him in extracurricular activities or worrying about the financial support. Backup
As a child plan also helps in funding wedding he can have a wedding of his dreams.
It is advised that a person can buy a child plan as soon as the child is born or can wait till he starts attending preschool. Make sure that you buy a child plan from a trusted insurance company. The insurance company will foster your child in case any uncertainty happens till the child is able to take care of himself the insurance company will take care of his financial needs .