- It is important to start planning early for your child to ensure their financial security
- Products like the unit-linked insurance plan cover both risk as well as provide growth opportunities for your investment
Parenthood is that amazing phase of life that brings with it overwhelming happiness and backbreaking struggles. Nothing matters more than your bundle of joy, nothing more important than his/her safety. If you are a parent, or are on your way to becoming one, you can relate yourselves with these emotions.
They say parenthood changes you completely; you are willing to forego your personal expenses to buy your child that expensive battery-operated toy car or the princess dress for her birthday. Your social life revolves around your child’s schoolmates and their families. You may have complained about projects during your college days but are now happy to put in long hours to make your child’s school project stand out from the rest.
Instinctively, you want to give your child the best you can. But while you take care to meet your child’s immediate needs as they grow up, it is prudent to look ahead into their future needs as well, and be equally prepared for it. Undoubtedly, your child will finish high school one day and look forward to pursue his/her dream career. With the rising costs of education, it becomes important to have a proper financial planning in place to ensure you are never short of funds when you need it the most.
Thankfully, there are investment options which offer an avenue to grow your money for securing your child's future. If you start early, your investment can get up to 15 to 20 years time to grow into a considerable corpus to fund your child's higher education. You should look at investments that offer growth over a long duration.
Additionally, you will not want an element of risk when you are planning for your child's future, and ensure the payouts are guaranteed, right? Hence you should look at products that besides offering substantial growth over a long duration, is also secure.
Products like the unit-linked insurance plan(ULIP) offers both of the above. They cover risk as well as provide growth opportunities for your investment. There is a special variant under ULIP plans called the Child plans. Its features are designed in such a way as to support your child's future education needs. These plans further allow you to get tax benefits on the investments made and payouts received.
If you need help with deciding how much you should invest for your child's higher education, the best tool is a child education planner. Such calculators factor in the rate of inflation too, so use them for better investment planning for your child's education.
Investing for your child's future may be just one of the things you do as a parent but it is guaranteed to bring you the returns a sense of security for your family, peace of mind regarding the future, and more than anything else, fulfilling the dreams and ambitions of your dearest one.