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Child Plan

Planning for their children and giving them the best of everything is every parent's dream. Child's education and marriage requires a lot of systematic planning. These are generally goal based planning and thus some amount of monet needs to be allocated every month.

However planning for the child's future through Unit Linked Plans is an ideal solution as it gives the family an ideal solution as it gives the benefit of both family protection and high returns.

Why Child Insurance is required?
1. Increasing cost of education, because of which one needs to star saving early.
2. For the overall development of child and to make him an all rounder in all the fields, child planning becomes necessary as it increases the overall cost of education.
3. Child Insurance plans has the benefit of Waiver of Premium, which says that if something happens to the parent, all the future premiums are waived off and are paid by the insurance company and thus the goal for which child planning was done does not get defeated.
4. Also it inculcates tax savings under the prevailing income tax laws.

Parameters to be taken into consideration while doing Child Planning?
1. Start as early as possible:
Generally the tenure for planning for your child is 12-15 years. Thus one should start planning early so that you are able to create some amount of corpus at the time your child requires. Also the compounding effect reduces if you start late. Thus planning for your child on time is important.

2. Equity based investments to get good returns:
You can invest your money in a unit linked child plan wherein your money can be invested in equity based fund as well, so that you are able to enjoy the market uptrends and thus create wealth for yourself.

3. Waiver of Premium concept :
The benefit of waiver of premium is very important in context of child plans. This says that in case anything happens to the father of the child, the insurance company will waive off all the future unpaid premiums and will pay them on behalf of the parent. On the other hand, all the future benefits would remain intact. Thus the purpose for which the child plan was taken doesn't get defeated.

4. Make your current investment by taking into account your child's future goals