If you are also worried about your child’s education then today’s article is for you. If you also want to give your child a better education, then you have to prepare for it in time. You have to invest in an investment medium that gives better returns in the long run. We are telling you three investment plans to take care of children’s education. You can invest in them as per your need and savings.
1. Child ULIP
You can start investing in child ULIPs to meet the cost of children’s education. If you talk about the benefits of this scheme, then it works to give you disciplined investment, high insurance coverage and the benefit of the equity market. Child Education Plan (ULIP) payouts after the child completes 18 years of age. In addition, the sum assured is paid to the child on the death of the parent or his legal guardian.
2. Endowment Plan
Under these plans, steady returns are provided in the form of a bonus on the sum assured. This type of plan offers guaranteed returns as well as life insurance coverage. These plans usually make four payments equal to 25% of the sum assured with applicable bonuses after the child turns 18. Like endowment plans, these plans usually come with regular returns from time to time. It’s often recommended as a great option for a longer period, such as more than 10 years.
3. Sukanya Samriddhi Yojana
In this scheme, you can invest by opening an account in the name of your girl child under 10 years of age. You can open an account with Rs 250 in the name of a girl. You can get tax rebate on investment of up to Rs 1.5 lakh in a financial year. Currently, the scheme is getting interest at the rate of 8.50%.
4. SIP
By investing in mutual funds through SIP, you can easily accumulate a large amount of money for your child’s education. You can get great returns in the long term by choosing mid cap or small cap.
How to choose the best plan
Type of insurance: There are many factors to consider while choosing the best plan for your child. First, parents should figure out whether they need an insurance plan, education plan, or a combination of both. These provide financial security to the child, especially in times when the parent dies.
Total Coverage Amount: It depends on the kind of course the child wants to take. To consider this, you need to look at the child’s tuition fees, inflation, and living expenses, among other things.
Premium to be paid: This is an important aspect of the plan as it depends on the income of the parents. Always choose a plan that suits your budget and doesn’t force you to overspend.
Desclimer : For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.
