Plan for child marriage

We all want to secure our child's future in some way or the other. We either make investments in the bank, gold or market shares and stocks. Unit Linked Insurance policy is a popular insurance policy that is preferred by most parents. It is best to go for child insurance while your child is still young, thereby securing your child's future.

A child's education in today's world is a great expense for most families. Moreover, a growing population of students now prefer finishing their graduation or post-graduation studies abroad. An education abroad would cost approximately 50 lakh to 1 crore or possibly even more. This is including the up-keep of the child, travel, and hostel expenses apart from the course fee. Thus, if parents plan at an early stage and responsibly put away a certain amount of money every month, the pressure to pay for a child's education will reduce considerably.

So how does a child insurance plan work? The basic premise is to invest a little money every month or every year for a maximum term of 25 years, and in turn you are allowed to collect your money periodically in the future. Thus, you could use some part of the money for your child's studies and at a later stage, for your child's marriage.

Child plans that are ULIPs help you get maximum returns for your child. Even though Unit Linked Child Insurance Plans are maligned for their unusually high-costs, they maximise benefits over the long term and one must continue for the maximum tenure subscribed in the plan. Thus, if you need returns with higher rate of growth and are ready to take on the higher market risk involved, then you should opt for Child - ULIP Plans.

So why would one need to invest in a child insurance plan? The first reason would probably be for providing for your child's education. Saving for child insurance is also considered to be an important exercise in financial planning. It helps you organise your savings in addition to planning for your own life insurance.