Child Plan

Children's Plans helps you save so that you can fulfill your child's dreams and aspirations. These plans go a long way in securing your child's future by financing the key milestones in their lives even if you are no longer around to oversee them. As a parent, you wish to provide your child with the very best that life offers, the best possible education, marriage and life style.

Most of these goals have a price tag attached and unless you plan your finances carefully, you may not be able to provide the required economic support to your child when you need it the most. For example, with the high and rising costs of education, if you are not financially prepared, your child may miss an opportunity of a lifetime.

There are two types of such plans in India – endowment based and ULIPs (Unit Linked Insurance Plans). The latter is called child ULIPs.

• Endowment plans depend largely on the insurer’s performance – if your insurance company generated profits and gives is out for you, then your fund value grows. So here you have to depend on the bonus given out to you. As these invest in debt products, do not expect spectacular returns from child endowment plans.
• Child ULIPs, sold heavily in India, are instruments that take advantage of equity investment and hence carry risk with them which gets evened out if you stick with them for a longer duration. Child ULIP plans have high entry charges associated with them so the amount of your money invested is less in the initial years than in the later.