Save Money For Your Child: All You Need To Know About Child Plan

Every parent worries about their child's future, the cost of their school, and even works to save money for their other expenses. Parents should take it a step further, though, and think about giving their kids a bright future.  They can amass a sizable quantity of money that can be utilised for their child's future if they carefully plan and invest in one of India's top child investment plans.

Child Savings Plans: What Are They?

The twin advantages of investment and insurance are provided by child savings plans. To put money down for your child's future marriage, health, and education, you can invest in these plans.

When demands arise, you can raise money for the child's necessities if you invest in a child savings plan. A kids savings plan permits your child to receive a lump sum payout in the terrible event of your passing. It might be advantageous for the child's education and other requirements. Additionally, you have the choice to use loans secured by the plan.

Points to Consider Before Selecting A Child Savings Plan

Choosing a kids savings plan is a smart move because:

• Child plans offer financial relief for your child's conceivable future needs, including those related to education, marriage, health, and extracurricular activities.
• Put your family's current financial circumstances first. Child plans assist you in deciding how much to invest in your child's future.
• Rely on a plan that also includes life insurance to get the most out of it.
• Select a policy with additional rider features. It might include premium waivers, maturity benefits, or sector-specific benefits. If a child savings plan provides financial security for unforeseen circumstances, you can invest in it.

Types Of Child Savings Plans

You can choose from the following lists of child savings schemes:

• The Sukanya Samriddhi Scheme

   

It is a government initiative in India to protect and educate young women. Any authorised branch of a commercial bank or post office is where you can open a scheme account. The main requirement is that your daughter shouldn't be older than 10 years old. The lowest necessary deposit is 250 rupees, while the annual maximum is 1.5 lakhs.

• Recurring Deposit Investments 

Banks or post office recurring deposits offer substantially larger returns, you can rely on them. The RD programme is the best choice for securing adequate quantities in urgent emergencies with little investment risk.

• Child Endowment Plans

Your assets are placed into a variety of debt products based on the insurance company's recommendations. Even though the profits on such investments are not very high, your money is guaranteed to be secure because of the extremely low degree of risk involved. These insurance policies offer you bonuses over the policy sum promised as a reliable return on your investment.

• Single Premium Child Plan

These plans give parents the option to pay the insurance premium in one lump sum payment for the duration of the policy, relieving them of the burden of keeping track of the premium due dates. Additionally, the single premium plan will relieve you of the responsibility of making financial arrangements for the periodic payment of policy premiums. Some insurance providers also offer enticing discounts or lower the rate for child insurance coverage.

• Gold

Purchasing gold is one of the finest strategies to ensure a child's future, with the largest benefit being that its price usually only rises. Gold has consistently been a safe haven asset in recent years.

Conclusion

Now that you are aware of the best kid savings programmes and their importance for your child. You may now go ahead and buy your child's investing strategy. Consider aspects including risk tolerance, age, investing horizon, child's age, ambition, and available funds while choosing the best plans.

Also read: Different Life Insurance Plans For Child

Are There Risks Involved In Buying Child Plans?