Invest to meet your child?EUR (TM) S ambitions with baby plans

Every parent aspires to fulfill the dream of his child. With the cost of education and day to day living increasing simultaneously, it gets difficult to save enough to meet the ambitions of your child. However, this does not mean that your child cannot fulfill his dreams. All you need is a plan that separately saves for your child and offers you the fruit of your investment at the time when you need it the most. Child plans are specifically designed to save for your child's future and keep him/her financially secured in your absence.

Here's how they help to secure your child's future

Systematic savings process-
In order to achieve a financial goal it is important to get into the habit of saving regularly. With the constantly rising cost of living, it gets difficult to regularly keep aside an amount to invest for your child without any system in place. Child plans give you a disciplined investment system, as to keep the plan functioning you need to pay a certain amount of premium regularly towards the plan. In return the plan offers you the sum assured on maturity. These savings are secluded to ensure the future of your child is not at risk.

Death Benefit-
In case of the untimely death of the parent the future of the child is lost. This is why child plans includes death benefit as a feature in the scheme. With this benefit, the nominee of the policy gets the sum assured as the death benefit in the case of the unfortunate death of the policy holder. In some plans, the nominee receives a percentage of the sum assured at regular intervalsand pay-outs of a lump sum amount at the time of maturity.Under some plans the cover for the child continues until maturity as the company keeps paying the rest of the premiums.

Customised Plans-
When it comes to investment, there is no one size fits all; every investor has his own preference. This is why child plans give you the flexibility to customize the plan. The investor can choose the duration of the plan, the order in which he wants the pay-outs, the sum assured etc. It is good to opt for a traditional or a child unit-linked plans as both these plans offer great benefits and increase your sum assured.

Selectplan maturity date-
To highlight feature of child plans is that it lets the investor choose the maturity date of the policy. So you can plan to avail the sum assured either around the time he/she completes his/her graduation or after his/her studies to help them establish their own business, or at whatever stage that is crucial to you. However, do keep your financial condition in mind at the time of deciding the maturity date.

Source: http://www.squidoo.com/invest-to-fulfill-your-child-s-ambitions-with-child-plans

Sarita Mane is an experienced author with keen interest in financial subjects & has a number articles to her credit based on topics related to child plans.

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