It is important for all parents to start saving for their children. As your child will grow big, you will have to meet more expenses for his/her education. With time in hand, consider a proper child plan that can give you the best coverage for your child. In the discussion below you will come across different types of investments that you make today for your child to secure the little one’s future in all circumspect.
It is natural for an adult to buy a life insurance policy, and then why not consider buying a LIC child plan? Many parents have a farsightedness to forecast the future. They want the welfare of their children and they fear what may happen to them when the parent is not around? Nobody knows what will happen tomorrow, so anyone can meet with an unfortunate death anytime. Nothing can be done to help their children fight remorse during the unfortunate time, but parents can buy a LIC child plan will bring financial support even if the main breadwinner is no more.
LIC Child Plan- What is it?
A LIC child plan is defined as a participating plan that comes with bonuses and the biggest plus point is that the premium has to be paid for a very limited term of this plan. If the child is less than 8 years of age, then the plan has a deferent period. Under this plan, the risk cover will commence just one day just before the beginning of the 2 years policy or just one day prior to policy anniversary that coincides with completion of 8 years of age of the child.
Remember, the LIC child plan is vested in the name of your child against whom the life insurance is assured. The child will then become the policyholder at the time of the policy anniversary that happens on the child turning 18 years.
The LIC child plan is a money back policy that comes with survival benefits of @20% of the selected Sum Assured at every anniversary following the child’s attainment of 18, 20 or 22 years. However, remember that if the insured under the plan dies during the deferment period, that is, when the risk has not yet started, then the paid premiums are only returned.
As per eligibility criteria, the minimum entry age of the child has to be 0 years and the maximum entry age has to be 12 years. The maturity age under the plan is demarcated at 25 years. The policy term is minimum 25 years which is the entry age of the child. The minimum sum assured is 1 lakh and there is no limit to maximum sum assured. The minimum annual premium is Rs. 24, 000 and the maximum annual premium has no limit. The premium payment term is 10, 7 5 years. The premium payment frequency is yearly, half-yearly, monthly, quarterly.
Education Investment for your Child
When you are looking for best education investment options for your children, the market has many to offer. Every parent finds the best possible way to give the best education for their children. Hence, for this, it is important for parents to buy the best child education plan so that all educational expenses can be met and the child’s future can be secured. For instance, Sukanya Samriddhi Scheme allows saving for a girl child. This policy can be attained when your child is born until she attains 10 years of age. The minimum sum that can invest is Rs. 1000 and the maximum sum invested can be of Rs. 1.5 lakh. Yet again, you can buy PPF or equity mutual funds as part of child education plan.
Before you invest, study the market and then go about investing for your child’s future.