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The best policy for a child? How to choose it and are investing in the right place?
These are the basic question of every parent. Every parent thinks of the bright future for their children. They always take care of the things that they provide best to their child. The childhood of a kid needs best financial planning and the earlier one begins it, the better future going to be. That is Why a child financial planning includes an insurance plan gets into the frame. The child plans do have many saving schemes in India.
It is the best financial plan, investment options and the most fitting policy for every child. As it guarantees extended education and a safe future. It makes sure that the child gets all financial support he/she needs for all overgrowth in all the years of growth. With increasing inflation in the country, parents are often stuck with questions. Parents must know a difference of offline vs online insurance
What are the right and best investment plan that one must-see for?
The best policy for the child- In terms of Insurance Plans
Future Generali Assured Education Plan
Future Generali Assured Education Plan is a non-linked, non-participating insurance plan that is created to give payouts at key education pillars for one’s child.
This plan is a perfect launching for your child’s brilliant career. Also, it guarantees that one’s child’s education is never get compromised.
The plan ensures multiple benefits and gets loaded with great traits. Let us take a look at the plan in detail and its features and benefits.
- Premiums following the plan are payable for the whole span of the plan below the Regular pay choice of premium payment.
- There are 3 options to get the maturity profits under the plan .That can be determined either as money-back payouts.
- When the child reaches the age of 17 the maturity occurs.
- In Option A- 40 per cent of the Sum Assured is paid on policy maturity, i.e. when the child achieves 17 years of age. A 30 per cent 1 year after the maturity when the child achieves 18 years of age. Also, 20 per cent after another year .10 per cent of the Sum Assured after another year when the child achieves 20 years of age.
- Coming to Option B- 10 per cent of the Sum Assured is paid on maturity and for each year for 2 years. Following the year of maturity and 3 years postmaturity. The time the child achieves the age of 20 the 70 per cent of the Sum Assured is paid.
- 100% of the Sum Assured is given on maturity in Option C.
- Loans can be taken in the plan up to a highest of 85% of the Surrender Value.
Birla Sun Life Insurance Child Plans
This is a popular, participating, child plan, which gives certain payouts from time to time. Birla Sun Life Insurance leads to one’s plans that are particularly focussed on taking care of one’s child’s increasing demands. From career options to hobbies and concerns, it assures that one’s kid never avoids out on anything due to a shortage of funds. Let us take a look at the plan in detail and its features and benefits.
- The choice to pick any payout option one needs out of 2 handy choices. Pick option ‘A’ for a policy term of 16 years.The option ‘B’ for a policy term of 16 years.
- Get a loan of up to 85% of in policy surrender value upon this insurance plan.
- The policy doesn’t stop if one-stop financing premiums after 3 whole years of constant premium payment. It remains on a unified paid-up base.
- Tax saving investment option can also be achieved.
- 75 years is the highest age of maturity.
- Premium amount term is within 5-12 years.
- Least amount secured is Rs. 1 lakh rupees.
- Pick the amount of premium payment out of monthly, quarterly or annually.
- Entry age for receiving the policy is between 18-55 years and the regular bonus payouts.
Can read: Aditya Birla Mutual fund: Definition, Process, Types
Max Life Shiksha Plus Super
- It is a Limited pay and Regular option of premium payment with a unit-linked plan.
- The policyholders having a child of the age from 0-18 are just the only one who is fitted for this plan.
- In the situation of policyholder death. The family income advantage and funding of future premiums are given to the child. This is done to secure the future of the child.
- There is an advantage of STP (Systematic Transfer Plan) which uses the idea of rupee cost averaging.
- The policyholder can control the investments themselves or choice for Dynamic Fund Allocation choice or STP.
- This choice supports a particularised ratio of the fund value. In Growth Super and Secure Fund which varies with a growing policy term.
- The next funds are accessible for investment with Secure Plus Fund open only for STP choice.
SBI Life – Smart Champ Insurance Plan
Its is a traditional participating child plan formulated especially to give a complete package to a child for his education-related activities. Experience smart profits through 4 equal annual installments after one’s child reaches 18 years of age. Let us take a look at the plan in detail and its features and benefits of the best policy for the child.
- Assured Smart Profits are paid for 4 years @ 25% of the Basic Sum Assured. Also, 25% of the complete Simple Reversionary Bonuses next the child achieves 18 years and till he/she attains 21 years.
- On maturity, the ending installment of the Smart Benefit involves complete Bonuses. Also, the terminal Bonus if any is given to the policyholder.
- On death or injury of the policyholder within the term. A lump-sum death profit will be paid. That will be a multiple of the Single or Annual Premium given depends on the age of the policyholder.
- The future premiums are reserved but the policy proceeds and future bonuses to be accumulated.
- Income tax profit on the premium paid as per 80C deduction. Also, on the claims held as per Section 10(10D) of the Income Tax Act.
Exide Life Mera Aashirvad
Exide Life Mera Ashirvad is a plan that safeguards the child’s future even in the absence of the policyholder by building a secured corpus. The future of a child is a large responsibility and to be ready to fulfill this responsibility. That is where Exide Life Insurance child plan gets into understanding.
They provide one the chance to be able to build savings now which will assist one pay for their child’s education or marriage in the future. Let us take a look at the plan in detail and its features and benefits.
- Essential sums guarantees are valuable for discounts on premiums. The premiums can be paid annually or monthly.
- On maturity, the amount guaranteed will be paid out to the policyholder on the basis of payout choice picked by them.
- In matter, the policyholder passes away before the policy matures, all future premium payment is surrendered off. It additionally gives a grace period of 30 days for payment of premiums.
- The policy gives 2 variants, option ‘A’ and option ‘B’, which give different ways of paying out the profits of this policy.
- The guaranteed life protection given by this policy is the noblest of the amount guaranteed, 10 times the premium paid.
- The policy turns into a reduced paid-up policy if the premiums are not paid after 3 years.
- The open and free lock period for this policy is 15 days.
- The least sum guaranteed under this plan is Rs. 3.5 lakhs and there are no barriers to the greatest amount of assurance.
Conclusion
Invest these plan they are more beneficial for a secure and safe future of your child. These insurance plans accompany tax planning also and provide tax benefits. They have versatile periodic premium payment options. One has a choice to pick up between a ULIP and endowment plan. The best policy for the child is in an insurance plan as well as in mutual funds too.
In WealthBucket we also provide many plans for your child save future. With us, you can invest in mutual fund plans. Sign into the to our websiteWealthBucket and start investing in mutual funds. We render services like equity fund investment, Debt mutual fund, Large Cap mutual fund or Multi-Cap mutual fund, SIP Calculator and many more.
Give calls us at +91 9999379929. You can also email us at contact@wealthbucket.in
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