Every parent wants to give a better future to their children. For this, they get them educated in a good school. They get them admitted in the best college for higher education.
Best investment plans: At present, high school fees, dress and expensive books are troubling most of the parents. The increase in school fees every year is increasing the financial burden. The fees for higher education are creating even more difficulties. Many parents are facing difficulties due to the increase in college and technical education fees. In such a situation, if you also want to provide better education to your child, then you will have to prepare for it in time. You will have to invest in an investment medium that gives better returns in the long run. We are telling you three investment plans to bear the expenses of children’s education. You can invest in them according to your need and savings.
1. Child ULIP
To meet the expenses of children’s education, you can start investing in Child ULIP. If we talk about the benefits of this scheme, then it works to give you disciplined investment, high insurance coverage and the benefits of equity market. Child Education Plan (ULIP) is paid after the child completes 18 years of age. Further, the sum assured is paid to the child on the death of the parent or his/her legal guardian.
2. Endowment Plans
Under these plans, stable returns are provided on the sum assured in the form of bonuses. This type of plan offers guaranteed returns as well as life insurance coverage. These plans usually make four payments equal to 25% of the sum assured along with the applicable bonus after the child turns 18. Like endowment plans, these plans usually come with regular returns over a period of time. It is often recommended as a great option for long periods, such as more than 10 years.
3. Sukanya Samriddhi Yojana
In this scheme, you can invest by opening an account in the name of your girl child below 10 years of age. You can open an account in the name of a girl with Rs 250. You can get tax exemption on investing a maximum of Rs 1.5 lakh in a financial year. Currently, this scheme is getting interest at the rate of 8.50%.
4. Investment through SIP
By investing in mutual funds through SIP, you can easily deposit a large amount for your child’s education. You can get great returns in the long term by choosing mid cap or small cap.
How to choose the best plan
Type of insurance: There are several factors to consider when choosing the best plan for a child. Firstly, parents should figure out whether they want an insurance plan, an education plan or a combination of both. These provide financial security to the child, especially in times when the parents die.
Total coverage amount: This depends on the kind of course the child wants to pursue. To consider this, you need to look at the child’s tuition fees, inflation and living expenses among other things.
Premium to be paid: This is an important aspect of the plan as it depends on the income of the parents. Always choose a plan that suits your budget and does not force you to spend beyond the limit.
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