As parents, we always “wish” we could provide the best education & security to our children. However, we need to move from “Wish” to “Action”… This is where the importance of our Children's Future Planning is essential and critical.
A child’s education and wedding are high-priority life goals which MUST be done. Hence, we must set aside a corpus for these foreseeable expenditures, along with an adequate security cover during their growing years.
Most parents save regularly. However, savings alone is not enough.
What happens to the child’s future in case you are involved in a fatal accident ?
What in case of a major accident that results in your being incapable of performing even routine jobs?
Should this be a reason for your child’s future to get affected?
The answer is “NO”. So, ACT NOW!!
As a parent, you need to do the following:
- Invest Systematically, and
- Provide a financial security to cover any eventuality
It is important that you start saving early to overcome inflation.
For illustration purposes, a professional degree today costs approximately Rs. 2.5 lacs. If your child is one-year-old today, after 17 years when he/she goes to college, you may require a sum of Rs 6.3 lakhs, assuming an annual rate of inflation of 6%.
There are several products available today to achieve your objectives. A Children's Plan offered by almost all insurance companies helps build a corpus for your child's higher education, and also provides a security cover in the unfortunate event of the parent's demise.
Children's plans are offered under unit-linked option, having access to investments across all asset classes - equity, debt and cash.
