Investing early with a planned approach for your child will secure their future. It's like planting a seed and grooming it for a better tomorrow.
Child Savings Plan
Parenthood is one of the most exciting journeys, and while it brings immense love and laughter, there's a constant desire to empower a child. From the early years, you're driven to push them to pursue their dreams. However, with the passage of time, it often occurs that many parents may want to focus on their child’s financial future.
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Well, if you want to ensure that your child grows without any concerns about their future, start investing today. A child savings plan is an investment to fund their dreams, insurance for their precious lives, and a secure pool of funds for their future. Today, let's discuss some of the savings plans that you must consider investing in as early as possible.
Which is the Best Children Policy?
When you’re searching for a suitable insurance investment to buy, broadly, you may discover three of the most popular plans. Below are given their details to help you choose the best policy for your child’s future:
1. Child Endowment Plan
When you're aware of the goal to be achieved, a child endowment plan is the most suitable one. It provides you with insurance coverage and has maturity benefits. By paying regular premiums, the child will get a fixed lump sum payout at the policy's end. Moreover, in case of an unfortunate event, as per the policy, there's also a death benefit for the policyholder.
2. Child Savings Plan
This is one of the amazing investments your child can benefit from immensely. A child savings plan offers a three-fold benefit that includes an investment return, insurance coverage, and tax concession. This plan is so flexible that with the right market knowledge, you can maximise the returns securely and hassle-free.
3. Child Money Back Plans
Here is one of the best child investment plans that you may consider investing in for the long term. It is extremely beneficial to consider such a plan when your child may require funds for something over the years, like international studies. Alongside building cash value over the years, which gets added to the matured payout value, it offers life cover. There's also an option to opt for payout at regular intervals, which makes it an even better option.
Does Investing in Child Savings Plans Early Help?
Whether it's insurance, savings, or any other plan, investing early is always helpful. Now, in this case, it holds a lot of benefits for you as a parent, and your child as well. Here are some of them listed below:
1. Compound Interest
Did you ever think that what you once learned in your school days would help you secure your child's future? Well, compound interest benefits and it is indeed referred to as the "eighth wonder of the world" for a reason.
Early investments pave an exponential growth path for your money. Even the smallest contributions can accumulate significantly over a long period, thanks to compound interest.
2. Rupee-Cost Averaging
A suitable money growth strategy that involves a fixed amount of investment at regular intervals if you have opted for a child endowment plan. Early investments enable you to buy more at low prices and less at high prices, which translates to average out the per unit cost over time.
3. Tax Benefits
Taxes will always stay in the picture. Be it a child savings plan or any other insurance, you can avail of tax benefits for the premiums under Section 80C of the Income Tax Act. This shall eventually reduce your taxable income and lower your tax liability.
4. Avail of Loans & Partial Withdrawals
Child endowment and money back plans typically acquire cash value after a certain period of investment. This means you can take a loan against the policy's cash value in case of emergencies. However, there may be limits on how much you can borrow, and interest may be charged on the loan.
Look No Further for the Best Child Savings Plan
Investing early with a planned approach for your child will secure their future. It's like planting a seed and grooming it for a better tomorrow. Therefore, you must look for a suitable plan and get it from a reliable insurance-providing company like Canara HSBC Life Insurance.
Speaking of the future, given their industry reputation, you can check out their online child investment plans like iSelect Guaranteed Future Plus and Invest 4G. Once you go through their details, decide which one to buy and you can proceed with the rest of the buying steps on their website only.
Visit their official website for more information today!
Disclaimer: The information provided on the Website does not constitute investment advice, financial advice, trading advice, or any other form of advice, and you should not interpret any of the financial content as such. Please conduct your own due diligence and consult with a financial advisor before making any investment decisions. Midday does not endorse or promote any such activities, and you access them at your own risk, fully understanding the monetary and legal consequences involved. Midday shall not be held responsible for any losses you may incur as a result of using any such apps or websites.
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