Child investment plans: Understanding the need for it and its features

If you think marriage comes with a lot of responsibility, having a child is the next level. Ideally, you should start planning for your child's future from the moment he/she is born. While doing so, you must address multiple goals for both - your child and you.

Child investment plans is designed to help your child achieve his/her goals and pursue their dreams. Also, it benefits you too. These policies come with an array of benefits such as tax savings, additional wealth, and much more.

Today, the market is brimming with endless child investment policies. However, before you pick a plan, here are some features of the plan which you must check.

Minimum investment tenure:

In the beginning, this plan may come with a lock-in period. Eventually, the tenure can then be increased according to your needs. The longer you keep the plan running by paying timely premiums, the higher will be the payout amount at maturity.

Minimum deposit amount:

There is a minimum deposit amount to start your child's insurance plan. After that, you can increase your investment depending on what your investment plan allows.

Flexible premium payment:

You can pay regular premiums towards the plan through your bank account, or by cheque or making payments online.

Payouts:

You can select how you want to receive the payouts. A child investment plan allows you to receive payouts in the following ways:

• Quarterly
• Annually
• Minimum tenure of the phase

Why do you need a child's investment plan?

Helps to meet your child's goals with or without you:

The best part about a child investment plan is, it will take care of the finances which your child may require as he/she grows up especially if you meet with an unfortunate event such as death. As pre-defined, your child will receive regular payouts or lump sum amount, soon after your sudden demise.

Grow your money:

If you live through the tenure of the plan, then you can earn returns on the investment. Some of the best child insurance plans offer an added benefit of ULIP investment, it helps to save tax and offers you a maturity benefit.

When it comes to financial investments, the sooner you buy a child investment plan, the greater the benefits. Moreover, you pay fewer premiums and save yourself from the risk of inflation. So, without any further teen, select the best investment plan for your little one today!