The Best Child Plans for Female Child in India

Investing your hard-earned money appropriately is essential, but when it comes to children, it's crucial to make decisions that will safeguard their future. Long-term planning and investment are necessary to protect the girl child's future and build a sound financial foundation by the parents to draw upon in times of need. This article discusses some of the best insurance plans for a girl child in India and their features and benefits.

Best Child Plans for Girl Children Available in India

Choosing the best insurance plans for girl children before investing in the child's future significantly impacts how financially secure the child's future will be.
Before investing in the child, parents must consider all the financial aspects, the child's aspirations, and the flexibility of the financial position to receive the maximum possible benefits. Some of the best child plans for female child and their benefits are as follows.

Sukanya Samriddhi Yojna (SSY)

As part of his "Beti Bachao Beti Padhao" initiative, Indian Prime Minister Narendra Modi implemented SSY in 2015. The purpose of the SSY plan is to create a financial cushion for a child's future. This is one of the best child plans for girl children
Here are some of the best features of the SSY Scheme:

• This project is an initiative by the Indian government exclusively for women.
• Parents/guardians can create an account for females under the age of ten.
• The policy will remain in force until the girl marries at the age of 18 or 21. (whichever occurs initially).
• The annual interest rate, compounded, is 7.6%.
• Section 80C of the IT Act grants income tax exemption.
• The maximum yearly contribution is between INR 250 and INR 1,50,000 lakhs.
• The account must be only in the name of the female child.

2. Public Provident Fund (PPF)

For the girl child's investments, the PPF, which has a 15-year term, is an excellent choice. Parents can use this long-term investment strategy to assist their girls in building a strong financial foundation. Depending on the girl child's needs, the money in the PPF can be used for things like marriage, education, and other things.
The PPF includes the following features:

• It yields considerable rewards over the long run.
• Anyone can register a PPF account, and minors can even open accounts in their names.
• There is a lock-in term of 15 years.
• A minimum of Rs. 500 must be contributed each year and a maximum amount of INR 150,000.
• Section 80C of the Income Tax Act permits a maximum tax benefit of INR 1,50,000.
• The interest rate is 7.1% annually.

3. LIC Kanyadan Policy

There is no plan like the LIC Kanyadan Policy introduced by the Life Insurance Corporation of India. It is a modified version of the LIC Jeevan Lakshya plan that focuses specifically on protecting young girls. With reasonable premiums, this savings and protection plan offers a decent financial foundation for the future financial stability of the female child.

Features of the policy are:

• Girl child’s financial security.
• The policyholder receives a lump-sum maturity benefit.
• If the policyholder untimely dies, the premium is waived.
• If the policyholder passes away accidentally, INR 10 lakhs is deposited right away.
• Every year, INR. 50,000 is paid until maturity.
• The maturity amount is deposited only after the policy's tenure is over.
• The policy applies to both NRIs (Non-Indian Residents) and PIOs (Persons of Indian Origin).

4. Unit-Linked Insurance Plan (ULIP)

Another suggested investment choice—commonly referred to as ULIPs—and the best savings option for girls that Parents can opt for is the Unit Link Insurance Plan. This is one of the best child insurance plans available and is a combination plan that combines life insurance with investment alternatives, providing additional benefits.

The insurer pays the upcoming premiums in the event of the passing of a parent or guardian.
Additionally, in the aforementioned case, the insurer helps the nominee by providing her with a monthly income to finance her education.

If the guardian unexpectedly dies, the girl child will receive the entire sum to cover regular expenses.

5. Post-Office Term Deposit

This is an additional beneficial investing plan for young girls that is similar to bank fixed deposits or FDs. In this case, the investor saves money for a specific amount of time to receive definite returns. The money deposited and the interest accrued on it are included in the maturity amount.

Conclusion

There are many insurance companies, post offices, and banks offering various plans to protect a girl child’s future. These plans assist parents in generating sufficient funds for their daughter's bright future and further education. 
To find the best child insurance plans for a girl child available in India that fits their needs and their desires for higher education, parents must carefully assess the various schemes.

Also read: Debunking Myths About Buying Child Plans In India

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