Financial Planning for Your Child with Child Insurance Plan

Date 30 Jan 2023
Time 5 mins read
4
Rated by 1 readers
Exit Intent Popup /Assets/Project/ABCL/images/close-button.svg

Get Guaranteed Returns After a Month^

Unlock the Power of Smart Investment!

*Min 3 characters
+91
*Please enter a valid 10 digit Mobile No.
Exit Intent Popup /Assets/Project/ABCL/images/close-button.svg
/Assets/Project/ABCL/images/Icon-Filled.svg

I agree to the Terms of Usage and Privacy Policy. By submitting my contact details here, I override my NDNC registration and authorize ABSLI to contact me by phone/e-mail/SMS/WhatsApp. Trade Logo "Aditya Birla Capital" displayed above is owned by ADITYA BIRLA MANAGEMENT CORPORATION PRIVATE LIMITED (Trademark Owner) and used by ADITYA BIRLA SUN LIFE INSURANCE COMPANY LIMITED (ABSLI) under the license. BEWARE OF SPURIOUS / FRAUD PHONE CALLS! IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint. ABSLI Nishchit Aayush is a non-linked non-participating individual savings life insurance plan (UIN No 109N137V05)

/Assets/Project/ABCL/images/Icon-Filled.svg

Thank you

for your details.

We will reach out to you shortly.

According to a news report, the ASSOCHAM (Associated Chambers of Commerce and Industry in India) estimates that higher education costs have jumped a huge 120% during the last decade, and are expected to escalate even further in the upcoming years. This means that a higher education course which costs Rs. 10 lakhs today will cost upwards of Rs. 30 lakhs or even more after 20 years.

Therefore, unless you do careful financial planning for child's future, you could face an uphill task trying to pay for the future education of your child. You can consider investing in a child insurance plan which is a great tool for financial planning for child education.

Why take a child insurance plan?

As mentioned above, a child insurance plan is a great instrument that can help you in financial planning for child's future. The benefits of child insurance far outweigh any negatives or doubts you may have about the efficacy of these plans. These plans are designed to help you in meeting the higher education costs of your child.

In case you are unable to take out the funds required for your child's higher education; a child plan will come to your rescue. It will give you a much-needed breather so that you can use your income otherwise. Besides, a child insurance plan can also aid in financial planning for a child's education by providing a financial cushion against the unfortunate demise of his/her parent. In such a case, the insurer waives off the remaining premiums and the policy remains active which ensures secured future of the child.

Before investing in a child plan, make sure to calculate the required sum assured for your child by factoring in future inflation and potential costs of the course your child wishes to pursue. The power of compounding will help you to create a large corpus for the future of your child. Therefore, it is advisable to start investing in a child plan as soon as your child is born.

Other Child Financial Planning Options

Saving and investing regularly should form the crux of your financial planning for child's future. You might find it difficult to save money in the face of mounting living expenses, but a habit of disciplined savings will hold you and your loved ones in good stead for the future.

Along with your own savings, teach your child to save some amount from his/her pocket money every month. Encourage the savings habit in him/her and teach him/her about the value of responsible spending. You can deposit your child's savings in a savings bank account or open a PPF account in his/her name.

Other options that can help you in financial planning for child education include investing in gold ETFs, mutual funds using SIPs, and even short-term bonds.

How much helpful you found this article?
Star
4
Rated by 1 readers
4 / 5 ( 1 reviews )
Not Helpful
Somewhat Helpful
Helpful
Good
Best
Rating

Thank you for your feedback

Don't forget to share helpful information in your circle

About Author

Author

Thank you for your details. We will reach out to you shortly.

Thank you for your details.Currently we are facing issue in our system.

Pay ₹1 lakh/ year for 10 years & Get ₹21.58 Lakhs Guaranteed Benefits³
Min 3 characters
+91 phone
Please enter a valid 10 digit Mobile No.
*This field is required.
Buy ₹1 Crore Term Plan @ Just ₹27/day¹
ABSLI Child’s Future Assured Plan
Protect the important milestones in your child’s life
Flexibility to save for education or marriage
Guaranteed1 Returns
20% Loyalty Additions
Flexibility to Save
Pay
₹ 1 lakh/ year
Get Guaranteed Benefits³ of
₹ 21.58 Lakhs
  • Disclaimer

    ¹ Provided all premiums are paid.
    ³ABSLI Child’s Future Assured Plan. Plan option: Education & Marriage Milestone. Male | Age: 35 years | Policy term: 25 years | Premium paying term: 10 years | Education milestone benefit period: 3 yrs & Education assured benefit start term: 15 yrs | Marriage assured benefit start term: 25 years | Annualized premium: ₹1,00,000 (excluding tax) | Total Benefits Payout: Rs 21,58,664 [Education Milestone Payout: Rs 10,79,332 (policy year 15,16,17) and Marriage Milestone Payout: Rs 10,79,332 (policy year 25)] | Age of Child: 0 years, Child as a nominee | Sum assured multiple for marriage: 100%
    ABSLI Child Future Assured Plan (UIN: 109N124V01) is a non-linked non-participating individual life insurance savings plan
    ADV/7/20-21/614

Subscribe to our Newsletter

Get the latest product updates, company news, and special offers delivered right to your inbox

Thank you for Subscribing

Stay connected for tips on insurance and investments

*Please enter a valid Email.