Invest and Secure future of your child

When it comes to investment people generally wander around to have a proper guidance to have their money getting the proper growth. Investments are meant for some future requirements to be met at that time with the money saved at present. As value of money decreases with time everybody wants their money to grow with time. For when we are young we save for ourselves but with time everything change. Now our future is our kids which we have to manage because their future is our future. We will really be happy if they live happily, and for that we will have to provide them their basic amenities, so that they can grow with proper care and should have all the minimum facilities to meet up their requirement. And to meet their requirement we have to incur some expenses. So to meet up these expenses in future we will have to save, save with a planning and thus this is our investment. There are many types of investment we will discuss about, but these days insurance sector is giving the most wanted and most attractive saving plans for children ------ to meet up their future expenditure for education, marriage and many more…………………………………..
It is child insurance plan, which will come to one’s mind while thinking of an investment for securing the financial future of kids. Over the years child insurance plans definitely been able to rule the market among the various financial instruments designed to meet your child’s future and financial needs.Child insurance plans fulfill the various needs of your kids — whether that be higher education, marriage or any other future requirement, including the setting up a business of his/ her own. Especially high cost incurred in education and marriage in India is a matter of great concern among parents. Parents recognize the importance of a good education as a prime requirement for the success of their children and need solutions that allocate money in a planned manner towards this target and create savings for other requirement like marriage, etc.Any investment tool like mutual funds, stocks or PPF cannot compare or compete with Child plans of insurance companies because Child Plan also secure the child’s financial future even in case of death or disability of the parent during the term of the policy. In addition to covering risk, child insurance products ensure that the educational needs of the child are taken care of in the absence of the parents. Though child plans give lower returns it cover risk and returns are safe. There is risk of destroying value instead of creating wealth, but again it is to mention that returns are safe and secure future. Even the most safer side is that though many parents take higher risk and earn higher returns they seldom touch the investment marked in the name of their children. Other insurance plans may also fulfill the purpose but investment in the name of their wards in child plan has two major benefits. One they are kept untouched even at the time of crisis by their parents and second insurance company also take care even on absence of parents i.e. death of parent or permanent disability of parent.Though earlier child insurance plans were mostly available in the form of traditional endowment plans or money back policies only, these days even their ULIP (Unit Linked) versions have been unveiled to secure the child’s future by promising higher returns. Child plans are available with riders i.e. if the parent opts for an income-benefit rider, in case of his death the plan provides a regular pre-determined income at every future policy anniversary to meet the education expenses. The objective of child insurance plans is not to provide insurance to children but to create a corpus for them.Therefore to secure the life of one’s kid whom he really love should opt for child plan if otherwise not arranged for.
(The above article is sole idea of author collected from different sources including newspapers and life insurance agents and therefore not responsible for any investment by any reader. Reader is requested to check all pros and cons before investing.)