A child’s birth brings several responsibilities on their parent’s shoulders. There’s a lot of planning required to fulfill a child’s demands for his/her bright future, such as funding for higher education in a foreign country or saving money for their marriage.
Every parent wants to provide the best of everything for their children. To plan for your child’s future, you need to have a proper plan in place that can facilitate their requirements at every stage of life.
The first thing that you need to do is invest in the best child’s saving plan at the earliest instance possible. With this practice done consistently for the long term, you can accumulate enough funds for every important stage of your kid’s life.
While investing in a child’s savings plan, keep in mind that most people in India are not aware of proper investment tactics that ensure a prosperous future for their children. In case you’re also going through the same dilemma, make sure you keep reading.
This article will list down some pretty amazing reasons why early planning for your child’s better future is crucial in life.
Why Do You Need Financial Planning Earlier for Your Child’s Future?
The main reason why you should start financial planning for your children early is that it provides you plenty of time to accumulate a large corpus of savings. This prepares you to support your child’s requirements when they need you the most.
It is also beneficial to prepare for the future and have a strong financial position, especially when your child is on the verge of his/her career as this prevents you from making any kind of mistakes that may result in financial instability in the future.
If you’re currently planning to start a family, there is no better time than this to start saving and accumulating monetary resources. Here’s a list of reasons why it is necessary to plan early for the finances required to support your child:
Almost every parent in India is concerned with the growing cost of education in the country. Everyone wants to offer the best-in-class education to their children in a renowned institute, but it certainly comes with a hefty price that most people cannot afford.
With a child-saving plan, you can manage every educational expense for your child by accumulating enough funds to pay their university fees. Moreover, if your child wants to study abroad, funds accumulated through these plans allow you to do that too.
A good child savings plan acts as both an investment opportunity and insurance cover. Whether your child wants to start a business or marry and start a family, you can easily provide a helping hand to them by investing in a child plan.
While making investments in these plans, make sure you assess your current expenses and mortgages to determine your future financial requirements and choose a coverage amount that helps your child fulfill all their dreams and goals in life.
Parents Death Coverage
As it is known, death is unpredictable and you never know when it knocks on your door. If you want to make sure that your children sustain a comfortable and financially secure lifestyle even in the event of your death, you must consider investing in a child’s savings plan.
These plans provide a lump sum amount to your children in the event of your death, and your premiums will be managed by the insurer afterward. Moreover, when your policy’s tenure is over, the child can also avail of the coverage benefits offered by it.
Best Saving Plan for Child – Top Policies to Consider This Year
Canara HSBC OBC Smart Junior Plan
The Canara HSBC OBC smart junior plan is a non-linked protection and savings plan that provides you peace of mind by helping you fulfill your child’s educational requirements through consistent savings, even in the event of your unfortunate demise.
With this plan, your children can gain guaranteed payouts during the last five years of tenure of your policy. The plan also features annual bonuses that help you supercharge your investments and grow your accumulated corpus of financial resources.
Aditya Birla Sun Life Vision Star Plan
Being a traditional money-back policy, the Aditya Birla Sun Life Vision Star Child Savings Plan offers several periodic payouts to your children throughout the policy tenure. It has a minimum age requirement of only eighteen years that allows you to invest in this plan as early as possible.
The plan features a maximum tenure of 75 years and offers two major payout options namely periodic benefits and survival benefits. Once you’ve completed the lock-in period of this policy, you can enjoy the high liquidity of these plans by having the facility to claim the payout every two years.
Aegon Life Rising Star Insurance Plan
If you want to help your child achieve all their dreams and aspirations in life, the Aegon Life Rising Star Insurance Plan is a perfect investment option for you. This plan offers financial provisions for a specific time that helps you plan for your child’s bright future.
With this child savings plan, you can also invest in various funds like Debt, Accelerator, Secure, and Stable funds. Moreover, you can also choose from multiple premium payment terms such as monthly, yearly, quarterly, or half-yearly based on your investment preferences.
The growing rate of inflation has already made parenting tougher than ever. From education costs to lifestyle expenses, everything requires a significant amount of money. If you want to make your child’s future filled with opportunities and prosperities, you must plan for these expenses ahead.
With proper investments in the best savings plan for a child, you can accumulate sufficient money to help your child at every step of their life. They’ll be able to get a quality education and live a financially secure lifestyle.