Being a parent comes with a lot of responsibilities. There are times you have to tell them what to do and times you have to guide them throughout. It can be tricky sometimes as a parent since you want them to be self-reliant as early as they can yet, at the same time, you want them to understand not all things can be learned alone.
With that said, investing in your child’s future is an integral activity that every parent should be involved in. Parents realize that their children’s lives are affected by education, medical services and other qualities that the government cannot provide. A saving scheme should be set aside for children’s future needs to provide them with the opportunities to secure their economic status.
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Importance of Child Saving Schemes
1. Funding for Children’s Education
Finding a good school for your child can be rather expensive. A college education abroad or an MBA from a top business school can easily deplete your savings. Investing in a child savings scheme allows you to accumulate sufficient savings to make sure your child receives the best quality of education.
2. Aids Medical Emergencies
It’s a good idea to purchase child insurance if there is a family history of critical illness. By purchasing such insurance, you will be able to provide your child with the necessary medical treatment in the event of a serious illness. It offers coverage for the costs of hospitalization, rehabilitation, and the like, that are incurred by your child due to a medical emergency.
3. Unfortunate Demise of Parents
If a child’s parent has passed away during the term of a child’s insurance policy, the insurance company will cover the child’s premiums, thus helping to ensure that the coverage is maintained without interruption.
4. Consistent Habit of Savings
Before you buy insurance, figure out what it is you want to protect, whether it’s a college education, marriage, or even paying for a mortgage on a house. As you perform calculations, make sure you also take inflation into account.
You need to strike a balance between buying just enough insurance and splurging on more than you need. When you feel ready to take on the responsibility, sign the papers and do your part for your child’s future by investing in a child-saving scheme.
5. Income Protection for Children
If your child is an actor, singer, or other prodigy earning a high income and wants to save for the future, consider investing in a savings scheme to make the most of their capital. As they start investing at a young age, they can enjoy greater returns over time.
6. Collateral for Loans
The best thing about child saving schemes is that they can be used as collateral for banks to take financial loans. This allows you to mitigate any financial burdens that you may incur while raising your child and ensure you never have to seek someone to help you financially.
Best Child Saving Schemes in India
Let’s take a look at some of the best monthly saving schemes available in India to secure your child’s future:
1. Canara HSBC Oriental Bank Of Commerce Invest 4G Plan
The Invest 4G plan by Canara HSBC Oriental Bank Of Commerce is a Unit Linked Insurance Plan that offers several customization features to make financial savings as per your child’s aspirations and goals in life. The plan offers an array of portfolio management options with further flexibilities to provide you with complete control over your savings and insurance.
You can either choose to pay for the entire policy term or a fixed tenure or even once. Moreover, there are three different cover options to choose from, based on the different stages of your life. The plan also offers loyalty add-ons and wealth boosters periodically.
2. Aditya Birla Sun Life Vision Star Plan
The Vision Star plan is a traditional money-back policy that pays out periodically during the policy term. The minimum age to invest in this plan is 18 years and the maximum age for parents to invest is 55 years. The maturity period given in this policy is 75 years.
The company offers periodic payments or lifetime benefits, which are paid out every 2 years, and every year at the end of the 5-year term. At maturity, you also get a terminal bonus and a reversionary bonus to boost your savings corpus further.
3. Ageas Federal Child Insurance Savings Plan
Ageas Federal Child Insurance Savings Plan is a savings scheme that offers yearly pay-outs to help cover the expenses of your child’s education and other important milestones in life. In case of your unfortunate death, the plan will return the sum assured and waive the premiums.
The insured member will be paid 20% of the maturity sum assured at the end of 12 and 13 years plus the end of the 14th year, 60% of the sum assured is paid. In addition to this terminal bonus, an interim bonus, and a revisionary bonus are also paid to the policyholder.
4. Bajaj Allianz Young Assurance
Bajaj Allianz may be the right firm for you to turn to when making decisions about child insurance. It has a traditional child insurance policy with an inbuilt Accidental Permanent Total Disability benefit. It can be purchased by an adult with entry ages between 18 and 50 years of age.
The policy will be in force for at least 10 years and no more than 60 years after the date of inception. The maximum amount you can get is 70 times the monthly premium. You can pay your premiums monthly, quarterly, half-yearly, and yearly based on your preferences.
Conclusion
In this article, we have discussed the importance and benefits of having a child saving scheme in place for your family. We hope these points will help you make an informed decision about whether or not a plan is right for you and your family. When planning for your child’s future, it is important to focus on what you want for them rather than what you wouldn’t like to see happen. This way, they will be able to grow up with the opportunities that are most suitable for them and their personality.