How should you plan for your child’s future?

Once we become parents, the world changes for us. From planning the weekends to parties, we do everything that suits our children. Even the food we eat, we make sure everything is child-friendly. Our children become the center of our universe and we can do anything and everything to keep them safe. But what if we come across a mishap and lose our life? Have you ever thought about what all your children may have to go through in one such situation? Their lives will not only be shattered but they also have to face a lot of financial challenges. This is the reason; we should start early and put money in the child investment plans.

There are various types of investment plans that you can opt for. Here are a few of them discussed below:

Term Insurance Policy

One of the best ways to secure the future of our children is by purchasing a term insurance policy. Once you buy a term insurance plan, you keep paying the premiums until the period of the term plan is over. If you pass away during the tenure of the term insurance policy, the beneficiary of the plan will get the sum assured. You can add your spouse’s name in the beneficiary or someone you trust from your family for taking care of your child in your absence. The amount of sum assured is usually enough for at least paying the education fees of the children.

Sukanya Samriddhi Account (SSA)

If you have a girl child and you are looking for investment options for her future, you can certainly opt for Sukanya Samriddhi Account (SSA).  This is a scheme offered by the Government of India, which enables you to save money for your girl child. This account can be opened for girls up to the age of 10 years, and when she turns 21, the account matures. The minimum amount that you can pay for this account is INR 250 per year and the maximum can be INR 1.5 lakhs.

Fixed Deposits (FD)

If you worry a lot about the investment plans and are not sure if you will get a return or not, then this is the best option for you. FD has been a popular option for investment for many years. You can open an FD account in any bank with a nominal amount. The duration of the account can be anything such as 3, 5, or 10 years. Once the account is matured, you can withdraw the capital amount along with the interest. However, once you open this account, you cannot withdraw the money whenever you want. You have to wait for it to get matured.

Unit Linked Insurance Plan (ULIP)

ULIP is just the right option if you are looking for insurance protection as well as investment returns. Upon investing in ULIP, you will certainly get better returns. One portion of the premium that is paid by you is invested in the funds that operate in the capital market. However, the return is high on ULIP. If you pass away while your ULIP is running, your family will get the insurance payout.

Post Office Savings Schemes

It is one of the traditional ways of savings offered by India Post across the country. There are various types of savings schemes offered by the Post office which include Post office savings account, National savings certificate, 5-year senior citizen savings scheme, monthly income scheme account, Kisan Vikas Patra, Sukanya Samriddhi Yojana, and many more. Since these schemes are backed by the Government of India, many people opt for these for security and of course better rates of interest.

Public Provident Fund (PPF)

PPF is available for the general public and anyone can open an account. The lock-in period of a PPF account is 15 years but the rate of interest is higher than a Savings Account or a Fixed Deposit Account. As you open a PPF account, you will not only be able to save money but also enjoy tax benefits under Section 80 C.

Apart from these, there are several other investment options that you can choose from. Each of them will give you a good return which you can use for your children’s education and marriage purposes. To know more about such options, you can even visit the IIFL website.