What are child plans?
We all want our child to study in best school, to go to the best college (probably abroad), have the grandest wedding in town but nothing in this world comes for free. Everything involves cost and in the presence of demon like inflation, this money demand only keeps on increasing. For example a 2 year MBA in premier institute like IIMs of India used to cost around 2 lacs 8 years ago, today it hovers anywhere between 12 to 20 Lacs (depending on institute).
Hence, in the context of Indian culture where parents strictly take responsibilities of their child development, it becomes a necessity to invest for their future so that at appropriate junctures, one can get financial support.
Little more about Child Plans.
Age of both child and parent is important to determine the appropriate duration of investment. Use of proper riders like Accidental Death Benefit or Premium Waiver adds to the security of child.
Child Plan comes in both traditional as well as Unit Linked format where in a traditional plans has fixed payouts at regular intervals but in Unit Linked, payout are dependent on fund performance as per market conditions.
What are the benefits of Child Plans?
- It ensures the financial supports exactly when required for the various purposes of child development.
- It helps mitigating the rising cost of education
- Few plans secure both parents' as well as child's life
- Few riders continue the plan even after the death of parents' as it was.