Top Investment Options To Secure Child's Future

Investment Options To Safeguard Your Child’s Future
Bottom Line

To fulfil the responsibilities of a parent, investment in a child plan is a crucial element in today’s time. The right insurance plan can help your kid at different stages of life and can safeguard him or her from facing any financial crisis even when you are not around your child. Let’s discuss a few options which you can opt to secure the future of your child.

Investment Options To Safeguard Your Child’s Future

Here is a checklist of the investment options that will help you secure your child’s tomorrow:

Fixed Deposit

Fixed Deposit is the most easily accessible and safest for saving instruments that involves no major risk. It helps you get fixed returns as per your deposit amount, interest rate, and investment period. You can get this deposit open for your child at any private or public bank. The rate of interest on the fixed deposit generally ranges between 5% and 6.50%.

Government Schemes

The government introduces several government schemes from time to time. The schemes are short term as well as long term which are unbiased of any class, race, income, and so on. From comprehensive plans, flexible plans, or securing the girl child's future, you can opt for any government plan based on your objectives and requirements. Some of the popular government schemes are post office savings account, public provident fund and sukanya samriddhi yojana.

Unit Linked Investment Plan

Unit Linked Investment Plan (ULIP) offers the dual benefit of investment as well as insurance. In this type of investment, a part of your policy premium is invested in the life insurance while the remaining part is used in the market funds. This child future policy is always considered to be a wise idea that is worth investing in.

Mutual Fund or SIP

Mutual Funds or Systematic Investment Plans (SIP) are popular investment options. These are suitable for people who want benefits greater than the overall investment. It is easy to get the best out of these investment options by investing a handsome amount at once. However, you can begin to invest in SIPs with a minimum of Rs. 500. This is the best option for people who are short of money or time but wish to multiply their investment within a specific period.

Traditional Endowment Policy

Under the endowment plan, a part of your insurance premium is invested for the policyholder’s life coverage while the remaining part is used for his or her savings. No amount of your money is invested in the market investments which helps you get fixed and risk-free savings. If you are searching for the safest investment tool for your child, this can be the one.

Life Insurance Plan

Life is uncertain and you have to plan something for your child in your absence. If you are the only breadwinner in your family, a life insurance policy becomes more essential. It gives the nominee the death benefit in case of the policyholder’s death and it also gives the maturity benefit, if the policyholder survives the policy tenure. This could turn out to be a good long-term investment to secure the future of your child.

Bottom Line

Investing in the right policy today is necessary for your child’s tomorrow. Therefore, you should conduct thorough research to find an option that could fulfil your requirements without hitting your savings. In this article, we have come up with some popular investment options that you can opt for to secure your child’s future.

Also Read:

10 Myths about Child Insurance Plan

Child Protection Plans And Why You Must Buy Them?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.