Published on September 21st, 2021
Upbringing a child imposes certain responsibilities on the shoulders of parents. It requires immense brainstorming and planning to ensure proper care of a child, which guarantees a bright future for them.
The typical major tasks involved in parenting may include your child’s further education or marriage. Being a parent, you may want to offer everything your children need and cater to all their viable requirements.
However, it’s only possible when you have the right plan that facilitates their needs at every stage of their life.
Purchasing a savings plan for your child is one of the ways to help them sustain a financially secure future. With a proper child savings plan, you can make consistent monetary savings to generate a financial corpus that’ll be used for your child’s upbringing.
Although many people already know about such savings plans, not everyone considers investing in them because of a lack of adequate knowledge about the investment principles. If you also belong to the same user group, you should keep reading further.
This article aims to highlight some of the most significant reasons why investing in a child’s savings plan is crucial for your kid’s future.
Importance of Owning a Child Savings Plan
The earlier you start planning for the betterment of your child’s future, the more money you can accumulate in your savings corpus.
With a pool of financial resources available at your disposal, you can easily facilitate your child’s requirements at several important phases of their life.
If your child is very ambitious about his/her career, having a child savings plan allows you to prepare them for a bright future by helping them study in their desired institute.
Whether you’re planning to start a family or already have one, you should consider investing in a child’s plan at the earliest. Here’s why:
A child savings plan provides you benefits of both insurances as well as financial investments. It allows you to fulfill your child’s future goals, whether they want to start a family, study abroad, or initiate a business.
After you’ve properly assessed your present and future financial requirements, you can choose from multiple coverage options that allow you to effectively save for your child’s future goals and help them achieve their dreams in life.
Education is getting more and more expensive with admission fees for schools and colleges skyrocketing every year.
As a parent, you may want to offer top-notch education to your child, but the hefty prices might not be affordable for everyone out there.
By investing in a child savings plan, you can easily tackle the costly education expenses of your child through consistent investments.
This allows you to accumulate sufficient funds to provide for your child’s desired university fees and even help them study abroad.
Death of Parents
Death is inevitable and unpredictable at the same time. You may never know what life has planned for you.
Therefore, if you want to ensure a sustainable lifestyle for your child in case of your unfortunate demise, you need to invest in a child savings plan as soon as possible.
In the event of the death of parents, a child savings plan offers a lump sum payout benefit to your children and allows them to manage their daily expenses without relying on anyone. Your children can also enjoy the coverage benefits of your policy in such cases.
List of Best Child Savings Plans Available in India
Aditya Birla Sun Life Vision Star Plan
The Aditya Birla Sun Life Vision Star Plan is a traditional money-back policy that provides periodic payouts to your children in the event of your death throughout the policy tenure. The minimum age required to invest in this plan is only eighteen years.
Moreover, it features a maximum policy tenure of 75 years and allows you to choose from two different payout options namely survival benefits and periodic benefits.
After completing the lock-in period of your policy, you can enjoy good liquidity by having the liberty to claim payouts every two years.
Canara HSBC Oriental Bank of Commerce – Invest 4G Plan
The Canara HSBC Oriental Bank of Commerce – Invest 4G is a Unit Linked Insurance Plan that offers a wide range of customization features that allow you to orient your investments as per your child’s life goals and aspirations.
It allows you to choose from several different portfolio management options for maximum returns.
Moreover, with multiple cover options for different life stages and loyalty add-ons to boost your savings corpus, this plan certainly fits the bill for wealth accumulation.
There’s even a systematic withdrawal option that helps you generate an additional source of income during the policy term.
You also enjoy greater liquidity through the milestone withdrawal feature of this plan that allows you to withdraw your funds at specific events of your life such as your child’s education, marriage, or business.
It allows you to choose from over eight different funds for investment. This plan is by far one of the best savings plan in india.
Aegon Life Rising Star Insurance Plan
The Rising Star Insurance plan provided by Aegon Life acts as an ideal investment avenue to help you accumulate a financial corpus for your child’s dreams and aspirations.
It offers recurring monthly payouts after completing the policy tenure to fulfill your child’s financial requirements in life.
This is a great plan that allows you to invest in various market-linked instruments like debt, secure, stable, and accelerator funds in addition to multiple premium payment terms like monthly, quarterly, half-yearly, and yearly that allow you to invest at your convenience.
Many people do not know about saving money. Saving money is very important as it helps a person to grow and helps him plan for the future.
Online saving plans are a great way for saving money for the betterment of your child’s future. Therefore, make sure you invest in a child savings plan as early as possible. If you’re looking for plan recommendations, you should check out the ones stated above.