Financial planning for Child..................................

All parents are given the highest priority for their child's adolescent care. For better observation, financial planning is better as quickly as possible. By starting a savings plan early, even before your child begins elementary school, you can reduce the burden of taking on high debt to pay for his or her higher education.

The most valuable gift that the parents can give to their children is good quality education. At the same time, it is also the most expensive gift. We ask our children what they want to be when they grow up. And as parents, we must ensure that this goal is met and that we have adequate funds to meet this financial need.

Apart from the child’s future, there are other priorities as well as retirement, medical expenses, housing, etc. You should never dip into the funds save for these priorities to invest for your child. Planning better would be sensible and for that, you can take help from an expert financial planner.

What is Child Plan:-

Child Plan is an investment plan along with insurance in which, after a certain time, an estimated amount will be deposited for the child's education and marriage, as well as adherence to the child from the amount of insurance received by the insured on the unfortunate demise of the parent.

Benefits of Child Plan:-

The Child Plan offers you various types of benefits like Life cover, estimated amount, different types of riders.

Life cover:-

Investment:-

Riders:-

Before taking a child plan, take a look at all the plans of the company and look at your plan, considering the need for a child plan. CLICK HERE to compare online plans CHILD PLAN

You do not plan as much as you need, do not plan on anyone's plan, then look at your needs first and then select the plan.

How Child Planning Works: -

A systematic Goal-oriented approach, it is easier to meet your kid’s education expenses or any other goal for that matter.

As a tribute to the naughty little ones we can’t get enough of, we will help you with this process to make your decision making easier.

Start by defining the goals:

Depending on your kid’s aspiration the primary goal of Education can be divided into 2 i.e.Graduation, & Post – Graduation. Define it; try to keep these goals as realistic as possible. Even though, as parents, we want the best for our children, it should be a realistic goal which is possible to achieve without compromising on any other goals.

Define the Time Horizon:

Once the goals are defined, the next step will be to see how far the goals are. So, define the number of years left to arrive at the goal. This will give us a timeline needed, which is important while investing for any goal.

Assign values to the goals:

Based on these goals, now assign values in current terms to these goals. Once the values are assigned to the goals, set an inflation rate, ideally, 5% inflation rate can be set for these goals.

The Child Plan plan not only provides double purpose of being an insurance product but is an investment tool that provides financial protection at the critical stages of the child's life.

On the other hand, a child plume is an investment component which helps in making adequate amount so that the children can be provided funds for education, marriage, etc., at regular intervals.

Child insurance plan assures adequate return. Regardless of this fact, the insured person passes during the term of the plan or survives afterwards.

Importance of taking a child plan: -

The significance of the child plan is that we are explaining it with a table. Here there are two people, one of whom took a plan for the child and one did not take it.

Here we are referring to three types of child plans that provides estimated corpus for child education and marriage. so your child do not have to face any kind of difficulty in adhering to the child's adolescence with the investment for your child as well as the demise of parent's.

Out  of these 3 plans, 2 plans will provides insurance cum investment plan.

which you will have to take from the insurance company. 

The third plan, which will also provide a very good life cover with guaranteed returns, but in this plan,

Investment in the Government Scheme.

Plan-1 Traditional Child Plan -In this plan, you get a risk cover with investment, and you will get approx 4 to 5% return on your investment amount.

PLAN-2 ULIP plan- You will also get a risk cover along with investment. In this plan, you will get 10 times the risk cover of your saluted invested amount and approx 10% of your invested amount will run for the risk cover and approx 90% of your amount invested in different types of fund.

Plan-3 Self-Made Plan - In this plan, you can take any government scheme like PPF, Sukanya samridhi scheme etc. The Sukanya Samrudhi scheme is for the girls child only. After that, you have to take term insurance with which provides you high risk cover amount in less premium.

Here for example I will explain you how much returns & risk cover will get in the three plans.

If a person invests Rs.5000 per months for 18 years then how much return gets in three plan.

Plan-1 Traditional Plan: -

Rs.5000 * 12 month = 60000 Annually, with a return of 5% yearly after 18 years becomes Rs.17,33,658. And approx 12 lakhs insurance  cover.

PLAN-2 ULIP plan: -

Rs.5000 * 12 month = 60000 Annually, with a return of 8% yearly after 18 years, becomes Rs.23,44,386. And about 6 lakhs insurance cover. Returns will not be guaranteed in this plan.

Plan-3 Self-Made Plan (Term Plan with Government Scheme): -

Rs.5000 * 12 month = 60000 annually, from which you can take term insurance of 6000 yearly premium , you will get life insurance of 50 lakhs. After giving 6000 premiums of term insurance out of 60000, you have  Rs.54000, in which you can invest in PPF or Sukanya samridhi scheme and you will get return approx 8% yearly and after 18 yrs , becomes Rs.23,44,386. it gives guaranteed return on your inestment.