Empower Your Daughters With A Financially Secure Future

As a parent, the plan for securing your child’s future is of the utmost importance and you will work and do whatever it takes to make sure that you give them the best possible life. Financial independence and the ability to take care of oneself are something we all want to pass on to our children.

The kind of support we provide while we are alive will be mimicked by them in their adult lives, where on many occasions they will be expected to either take care of us or their loved ones. Child investment plans are viewed by most financial advisors as the best way to save for your child’s future.

It is better to start early so you have more time to save up for their education, wedding, and retirement. Through this article, let’s take a look at the importance of investing in a child plan and explore some of the best investment plans available for children in India.

Importance Of Making Investments in Child Investment Plans 

• Safety Against Financial Disruptions 

It’s critical to provide the means for your child’s future education by setting up an investment plan of some sort. This will safeguard them against sudden changes in your income or the event of your untimely demise, which may lead to a critical financial disruption if not taken care of.

The earlier you invest in your child’s future, the more you’ll benefit from compounding interest. It’s important to start investing early because you’ll have more time to build your savings. This will allow your child to stay safe against any financial disruptions they face in life.

• Designed for a Single Purpose

While there are various other investment vehicles to ensure the growth of your funds, none of them other than child plans are specifically motivated to a single purpose, and that is to secure the future of your child’s education needs.

These plans will help you get the most out of your monthly investment by using them to secure your child’s education. They do this by clearly specifying which education costs and general expenses of your child are to be covered.

• Easy to Plan 

Different people have different ideas on the subject of child investment plans, but the golden rule is to plan for your child’s future in a way that doesn’t prevent you from saving for your retirement. Child investment plans make it much easier to plan for your child’s future.

Based on the number of children you take care of, a child investment plan ensures that the burden of rising education expenses is adjusted for inflation during the post-retirement period of your life.

• Multiple Tax Benefits 

Child plans provide tax incentives, tax exemptions on both invested funds and benefits received, to reduce the financial stress that comes with investing. A child education plan also allows additional investment growth because taxes are not paid on investment growth.

<h2>Best Investment Plan for Children in India </h2>

With such an extensive list of benefits, it becomes apparent that child plans certainly play a major role in your child’s future wellbeing. Here’s a list of the best investment plan for child in India to help you get started:

• LIC New Children’s Money Back Plan

LIC’s New Children’s Money Back Plan is a single premium non-linked life insurance policy, dedicated to providing money to help you meet your child’s future aspirations like marriage, education, and other goals through survival benefits.

If you die before the maturity of your children’s money-back plans policy, your beneficiary (your child) will get the death benefit to be able to manage their day-to-day expenses in your absence. Therefore, make sure you check out this plan for your child’s future.

• Canara HSBC Oriental Bank Of Commerce  Invest 4G Plan 

The Canara HSBC Oriental Bank Of Commerce Invest 4G is a non-participatory life insurance savings plan that you can customize to meet your growing financial goals. With more options for portfolio management and flexibility, you get complete control over your savings and insurance needs.

If you choose to pay for your entire policy term, the mortality charges will be added to the fund value at maturity. In this insurance plan, you can choose to pay the premium for the entire policy term or limited years, and even once.

• HDFC Life Young Star Udaan

The HDFC Life Young Star Udaan is a participating endowment and moneyback plan that will help your parents provide for the future financial needs of their child. The plan offers three different types of maturity benefits and also features a premium waiver benefit in the event of your unfortunate death.

• ICICI Pru Smart Kid Solution

Smart Kid Solution is a unit-linked insurance plan offered by ICICI Prudential Life Insurance Company. It allows you to invest in a tax-efficient manner and helps secure the educational milestones of your children such as studying abroad.

The minimum entry age for this child investment plan is 20 years and the maximum is 54 years. Moreover, talking about the maturity age, the minimum and maximum maturity age you can choose with this plan are 30 years and 64 years respectively.

You can even choose from multiple premium payment modes with options to pay annually, half-yearly, and monthly. This provides you with the flexibility to invest in the betterment of your child at your convenience.

Bottom Line 

We all want a future for our children to live a better life than what we had. If you are looking for a way to make your child’s future more secure, then it is time to start investing in a child investment plan today.

As mentioned above, you must start early and maintain these investments through your childhood years. The earlier you invest, the more likely they will be able to get into the best universities and get that high-paying job when they grow up.