You will often come across numerous savings plans for children that are available in
different forms. These plans come in diverse avatars, with the basic premise being the
creation of a corpus for covering your child’s future education, wedding, and other costs.
At the same time, most of them also offer insurance coverage, which is another massive
benefit for those who are selecting these plans. But how do you come across the best
savings plans for kids? Below is some input that you should keep in mind.
Tips to Compare Savings Plans for Children- Key Pointers
Here are a few inputs that will help you compare and check savings plans for
children that are available these days.
● Coverage amount- The insurance coverage figure should be carefully verified
across multiple plans. This should be ample in terms of covering the financial
requirements of your child. It matters even more if you pass away, unfortunately,
within the policy tenure. This is the primary thing that you should check.
● Investment components- Multiple child plans have several savings and
investment components. Some of them may be unit-linked insurance plans
(ULIPs), and you may also find endowment plans. Numerous policies may be
compared depending on the kinds of investments being selected. You should look
at things like lock-ins, durations, risk appetite, investment types chosen, and so
on, including investment reallocation or adjustments.
● Payout and benefits- Look at the frequency of payouts offered by these child
plans. It should be in sync with the multiple stages or crucial junctures of your
child’s life. Simultaneously, look for added benefits like bonuses, if any.
● Premium waiver options- The premium waiver option should either be
integrated into the plan or made available to riders. This is a handy feature since
it ensures that upon the demise of the policyholder, the remaining premiums are
paid by the insurer while the plan benefits will continue seamlessly.
● Premium amounts- Check the premium amounts across multiple savings plans
for children. These should be affordable for you, although you should also check
the overall returns that you can get and whether they will be sufficient for your
child’s future financial requirements.
Concluding Notes
Check the tax deductions available for these plans before finalizing your purchase
decision. At the same time, make sure you buy the child plan from a reputed insurance
company. This will ensure a quick and hassle-free process along with extensive plan
features and benefits. Make sure that you check everything carefully before proceeding
further, noting the inclusions and exclusions. Read all the terms and conditions
minutely before going ahead.
Buying child investment and savings plans early on in your working life will be a
strategic decision. It will help your little one stay financially secure even in case of your
untimely demise or any other untoward scenario. Simultaneously, it will give you
periodic payouts or lump sum disbursals just when your child requires the funds the
most, i.e. before joining college, and so on.
