As a parent, you would want the best for your child. You ensure that all their aspirations are taken care of, and they face no financial discrepancy when achieving them. But it would be best if you made sure that this is the case, even in your absence.
Now, you all must be aware of ULIP investment for your child’s future. In this article, we will be discussing how top performing ULIP funds can help you save for your child’s secure financial future.
ULIP investments can be purchased based on your financial goals. If your long-term goal is to save for your child’s education, then a ULIP child plan is the option that you should consider buying. Apart from this, other goal-based ULIP investments available in the market are ULIP for retirement and ULIP for wealth creation.
Investing in ULIP based child plans
You can buy a ULIP child plan within 60-90 days of your child’s birth. That way, you will be able to save a significant amount for your child’s future. As we all know, investing in ULIP for a long time helps you earn reasonably high returns.
At first, you can start investing aggressively in the ULIP child plan and gradually move to a safer fund allocation as the maturity time nears. Moreover, ULIP child plans come with the waiver of premium cover. With this cover, all the future premiums will be paid by the insurer in case the investor (the parent) dies. That way, your child’s financial future is highly secured.
On the other hand, some ULIP child plans also offer a lump sum amount to the dependents on the death of the parent along with regular income to meet their expenses.
If you are a parent, ensure that you are making a well-informed decision when buying ULIP investments for your child’s future. It is important to evaluate your current financial situation, expenses, and future goals before buying the policy.
Also, do not completely rely on a single investment plan to secure the financial future of your loved ones. Make multiple investments so that in case of your sudden death, your family members will be financially protected for a long time.
Benefits of ULIP Child Plans
The following are the ULIP benefits for the child plans it offers.
- The policy offers the waiver of premiums cover to ensure that the future premiums of the plan are paid by the insurer in case the parent dies.
- Also, after the death of the parent, a monthly income is provided to the dependents so as to fund the child’s daily expenses.
- The dependents also receive a lump sum amount to manage the family’s expenses in the absence of the earning parent.
Moreover, ULIP child plans have no gender restrictions and can be bought for both girl- and boy-child. The maximum entry age of the child is 18 years old. Under this plan, the investors also have the flexibility to withdraw the entire amount after the completion of the five-year lock-in period. The ULIP child plan has no capping on the maximum deposit amount in the year. The investors can also avail tax deductions under Section 80C of the Income Tax Act, 1961.
To Sum It Up!
Overall, ULIP child plans are one of the best investment instruments to secure your child’s future. In case you are unsure of how much the policy might return, you can make use of the ULIP calculator and check potential ULIP returns for yourself.
Know that with ULIPs, you can save for specific goals for your child’s future such as college fees, marriage expenses, higher education abroad, etc. Be sure to look for an insurer that offers bespoke ULIP plans that fulfil your child’s needs.