Top 3 Child Investment Plans to Consider for Their Bright Future
Life’s different phases call for planning accordingly, especially financially. Today, when inflation and population are rising simultaneously, it has become important for you to do so, whether you’re a parent or a parent-to-be. Now, this may bring several options to your mind, but opting for the right one will get the job done.
Considering the requirements, the insurance market is growing tremendously with investment opportunities. While it helps secure the future from life’s uncertainties, you can also create a corpus. So, without further ado, let’s understand how child investment plans play a major role in today’s world and explore their types.
Why are Child Investment Plans Becoming Popular?
An investment is simply savings for the future. Conversely, an insurance plan offers coverage benefits along with investment opportunities. In this case, choosing one of the best child investment plans can offer you peace of mind. After all, it ensures coverage for your loved ones during unforeseen events.
Moreover, insurance investments help build a pool of funds simultaneously to fulfil your financial obligations or save them for your child’s future. Now, let’s move on to some of its types based on your requirements.
Exploring Child Investment Plans
As you know, the insurance market has been on a growth trajectory. Many options for child insurance have surfaced. In fact, a report suggests that in the coming five years, India will have the fastest-growing insurance sector among all G20 countries.
The range of plans includes insurance under government schemes to offerings of private insurance providers. Here are the top 3 plans worth looking at:
- Child Savings Plan
A child savings plan is a concerned and thoughtful step by the parents to establish a tough corpus for their future needs. This includes their education, marriage or other key life events. It is a plan that enables savings systematically for some years and provides dual benefits of insurance as well as investment growth/returns.
You’ll be making premium payments regularly, which will further translate to an investment in the form of interest-bearing accounts. They enable you to build a large sum that can be drawn on demand.
In the event of the death of the policyholder, it will provide a lump sum payout to safeguard the child’s future. Such an investment for children is generally flexible in premium payment and tax-efficient.
- Child Endowment Plan
These child investment plans are a mix of savings and insurance benefits. They provide the financial protection required for your child. In this scheme, parents are able to save in a disciplined manner for the long term. Upon the maturity of the policy, they receive a huge payout, which can be used for higher education, marriage, etc.
The plan also provides life cover so that in case of the policyholder’s demise, half the sum assured is paid as a death benefit. This ensures comprehensive financial security for the child.
Other benefits, like bonuses declared by the insurance company, add up to increase its overall returns and ensure that you receive significant financial backing.
- Child Money Back Plan
The objective of this plan is similar to other child investment plans. It aims to provide a periodical payout at the most important stages in your child’s life. This can be a need for capital for higher education or has just started working with one hand-to-mouth income.
These payments are offered to fit the child’s most important financial needs. It also contains a life insurance element, providing the child with a death benefit should the policyholder die.
If the policyholder survives to term, a maturity benefit is offered. The plan ensures liquidity at major milestones, allowing the parents to meet important costs for education and other expenses without being pressured financially.
Gift Your Child a Bright Future
Out of top child investment plans, selecting an ideal one requires a careful approach. Now, this may include an assessment of your goals and financial position. However, an important aspect that many of you fall for is attractive benefits, which often have hidden costs. Therefore, opting for the right insurance company, like Canara HSBC Life Insurance, is what’s more important.
Their transparency in offering different insurances and investments for children enables them to stand out as a top insurance provider in the market. Their CSR, or claim settlement ratio of 99.23%, is a testament to what they bring to your financial portfolio. So, go to their official website to learn more about these plans, and start investing online today!
