A better future for your child

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A better future for your child
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• As a parent, you wish to give
  the best amenities and education facilities for
  your children. You often worry if youve saved
  enough for your childrens future. Given the
  spiraling costs of education, and other things
  there is always a fear of inadequate savings. So,
  if youre not adequately prepared to meet the
  particular challenge, your child may miss the bus
  on a professional degree regardless of his or her
  skills and intelligence.

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• Nowadays, there are lots of financial products
  available for child future savings and
  securities. Of these, child insurance plans are
  the best products that will help you meet an
  increasing education cost and other needs of your
  child. A child plan offered by insurance
  companies acts a financial support while
  accomplishing various life stages such as primary
  and higher education, getting married or even
  laying the first stepping stone of their
  business.
• Why Child insurance plans?
• A child insurance offers a lump-sum payment, in
  the event of your sudden death, to your child
  that can be utilized to meet his or her future
  requirements. To make sure that the policy
  doesnt discontinue in the event of parents
  sudden demise, many insurers offer waiver of
  premium rider at the time of buying the policy
  and you wont be required to pay any future
  premium in your absence.

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• In case, your child doesnt wish to pursue
  higher studies or intend not to marry sooner, he
  or she can still make a claim. The objective of a
  child plan is to secure your childs future by
  making funds available on time-to-time for their
  purposes.
• To get the benefits, children wont have to wait
  till end of the plan to avail the payout. These
  plans allow withdrawing a certain percentage of
  the fund value after completion of 5 years from
  the date of commencement. In the event of your
  sudden death, your insurer will discontinue the
  ULIP and pay the funds to your child.
• This plan will also serve as one of the best
  investment tools for getting higher returns from
  the markets. By investing in a child plan at an
  early age, and worked upon carefully in
  consultation of your financial expert you can get
  the best returns that can come to children when
  the need arises. Opting for ULIP plan would help,
  the money to grow over a period of time
  especially due to compounding effect.

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• You can buy plan anytime, right from the day
  when your child is born or when your child steps
  into school. The sooner you start investing, the
  better would be returns generated in the
  long-term.
• The premium paid for a child plan is eligible
  for tax deduction under section 80C, while any
  income from the plan is tax-free under Section 10
  (10D).
• Planning ahead and making investments towards
  child's education at an early stage are the
  critical success factors in realizing this goal.
• While the waiver of premium is certainly a big
  advantage, this benefit comes with a slightly
  extra cost. The mortality charges for a child
  plan are little higher than those levied by an
  ordinary ULIP. This is because child plans are
  type-II ULIPs, which give the dual benefits of
  both the insured amount and the fund value to the
  nominee on the death of a policyholder. While
  type-I ULIP given only the higher of the two sums
  and, therefore, have a lower mortality charge.

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• From the time your child enters into your life
  till the time he or she settles in life, your
  child's expenses are not uniform. At times the
  needs are big or small depending upon their
  requirements and achievements in life. Therefore,
  opting for Child Investment Plans will help you
  to counter the expenses and provide a financial
  stability for them.

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