One of the prime reasons behind attending your 9 to 5 job is to provide a better future for your family. Securing your spouse and children’s future must be your essential goal to fulfill because you sure want to give a good educational chance to your child. As the parents are being more aware of their children’s present and future now, investing in child plans can be an effective step.
There is nothing can make you proud than seeing your child be established in life and it is the dream of every parent to provide him/her with the best possible career option. As the process of career building initiates at the earliest stage of life, getting an admission in a renowned educational institute can be helpful. Thereafter, a child plan policy can fulfill educational needs along with the basic necessities of your child.
When Should You Start Saving for Your Child?
It is a known fact that investing in a child plan is highly effective right after the birth of the baby. Many of the parents even take essential measures before the baby’s birth so that they are able to fulfill the child’s demand always.
- 2% of the parents invest on child protection plan before the birth of the baby and 62.9% of the parents invest on child plan when the baby is around one to three year(s) old.
- When the little one is around four to seven years, 20.2% of parents invest in child plan online.
- 9% guardians seem to invest in the plan customized for their parents when their son or daughter reaches the age mark of eight to eleven years.
- Only 2.8% of people are seen to pay in a child plan scheme when the child becomes 12 years old.
The figures indicate that investors are well aware of the fact the sooner they choose to invest, the bigger the corpus becomes. Apart from making investments, getting returns is another factor that the parents keep in mind. You should know that if the chances of risks are higher in the investment plan, the amount of returns is likely to be high.
Which Child Plan can be Suitable For You?
There are various plans that have the potential to address children’s needs and with the investment in the right path, you can make things right for your child.
If you have thought gold ETFs can help you achieve your financial goals, you are wrong because this can work as a child plan. These are mutual funds with every portion equivalent to a gram of gold. You can think of it is as a paper gold which can be bought and sold just as the mutual fund units.
However, for the gold ETFs, you need to create a demat account through making deposits. You may choose to run a child plan comparison to understand whether this option will be better than others.
Public Provident Fund
PPF or fixed deposit is a child plan tax benefit option that helps you with long-term investments. Parents being the legal guardian of the children can open a PPF account for them. However, only one parent can open one PPF account for one child only.
If the grandparents are the legal guardian of an infant due to the death of the parents, they can also initiate the account for the child. The period is for 15 years but it can be extended for five years.
The fixed deposits provide you with regular income through the interest rate that is made in every month or another periodical basis. Needless to say, this one is an effective plan but it cannot protect you against inflation.
Child Insurance Plan
Hundreds of policymakers have come up child investment plan and many of them have remarkable features.
- If you take help of child plan policy comparison, you can understand the insurance plan has the capability of providing enough cash for your child’s significant events in life which includes graduation or marriage.
- Tax benefits are always present in the child plan.
- By using a child plan policy calculator, you can choose the plan with the highest interest rate and customize the term of premium.
- The entry age ranges 18-20 years old and the maximum maturity age is 75 years.
- The child plan can even the insured to set up a business plan with the money of maturity.
- At the unfortunate demise of the insured, the nominee is liable to get the money fixed for the child plan.
Apart from these features, you can always get to receive special benefits that can shield your child’s life in every possible way. Additionally, the child plan premium calculator should be used beforehand to get the quotes which can let you know whether it is necessary to invest in the plan. Henceforth, you can easily understand how easy for the middle-class parents to get the benefits of a child investment plan.