Best Child Investment Plans
When you hold that little bundle of joy for the first time in your hands, those tiny little toes
and eyes will complete you. Above all, the feeling of becoming proud parents for the first
time is something mesmerizing and you definitely are on cloud nine. I am sure that most of
you would completely agree with me on this.
However, just slightly drifting away, there is an other obstacle that would come crashing down on us, especially for the dads! Any guesses?
Yep, the question of providing the best, secure life and future for our little ones. This
question arises in the mind of each and every dad. Well, even moms for that matter of fact!
Take my story, when I had my little hero in my hands, all snuggled and cuddled up, his
granddad was like,
“I need to start planning right away for him.” He spoke about the school, the extracurricular
activities, his career path and the list went on and on…
I was like, “Dad, Take a deep breath and relax. He’s a new-born!”
And his answer was… I know, you would have guessed it by now!
“You will not realise it now. Only when the time comes, you will understand! It is always
good to plan ahead.”
After all, that’s what grandparents are for. Their love and affection for their grandchildren has
no boundaries! The grandparents indeed are the sweetest souls.
And believe it or not, that day, I did take that statement seriously.
I decided to do some research work on providing a financially stable and secure future for my champ. In order to enlighten many folks, I thought it would be a good idea to pen down a few lines about my
studies. The highlights are discussed below.
When it comes to providing a secure life to your child, it mainly covers two important
aspects, the first being his/her education and the second being other financial expenditures
that may arise in the future.
It is a very good and mature decision to go for child investment plans but it is indeed a very difficult task to pick one from the varied range of choices that are spread across the market. So to make your work easy, I would like to share a few points when you are going in for a child investment plan.
1. Earlier the better.
If your children are young, like around 3 or 4 years then it is the
right time to invest in the plan. If they are in their teens, then you need to choose plans
that have shorter validity duration.
We often get worked up at the very sight of the word ‘inflation.’ And currently, the educational system in India is highly influenced with money and is competing strongly with the medical field. The amount we need to spend for medical treatments is gradually increasing day by day.
Hence, when your child grows up, the expenses in the field of education and medicine would have
skyrocketed! In order to meet this, it is very important to lay a strong foundation right
at the beginning.
2. Timely accumulation of money coupled with methodical planning is the key for you
to have funds right at your disposal at each and every important stage in your child’s
life. Nowadays, the child investment plan comes along with insurance and investment.
These plans provide the required security for the child even if the parents are not around.
Hence, it is a good option to consider this kind as well.
3. Have a look into the various features the plan has to offer you. Every plan is uniquely
designed and would cater to different aspects. So it is up to you to choose what you
actually want from the plan. In short, set a goal and work towards it.
4. Have a very close look at the Terms and Conditions inclusive of the charges that may
be applicable later. Make sure as to enquire about the flexibility of the plan as well.
5. Lastly, please make a through survey in the market and compare the plan with other
providers before your finalise.
Next, the obvious question would be what are the child investment plans that are available in the market?
6. Public Provident Fund (PPF)
I am sure most of you would be aware of this. An excellent method to securely lock
your money for a period of 15 years. Its various characteristics makes it a really
attraction scheme to go for.
7. SBI – Smart Scholar and Smart Champ Insurance Plan
An extremely useful scheme in case of your family members not being around. It does
provide insurance benefit and the Smart Champ scheme addresses your child’s
8. LIC – Child Investment Career Plan.
I guess everyone would know how big the LIC firm is and its operation when it comes
to insurance and investment plans. The plan and the name says it all. It completely
caters to the child’s educational needs.
The main point is that in this plan, the money comes in small installments and the major share comes when the child reaches 18
9. Tata AIG Insurance Plan
Yet another amazing plan that caters to all the members of the family. It is a
wholesome package plan and is guaranteed for lifetime.
10. Gold deposits
Here I do not imply physical gold deposits as it would be an additional burden to
protect and safeguard it. I mean storing gold in the electronic form. Here, a slight
disadvantage is that over a period of time you need to shell out the capital gain tax
when you sell it off.
11. ICICI Pru Smart Kids Regular Premium
It is an endowment plan that addresses all the educational needs that your child would
require in the future. It also offers secured protection in case of accidents and
12. A few other areas of interest would be investing in equity mutual funds, bank deposits
13. HDFC Super Premium
This scheme provides flexible payment benefits that are SAVE benefit and Save ‘n’
Gain benefit. It includes life insurance and is tailored to suit your requirements in
14. Max Bupa Insurance
With medical expenses exponentially increasing by the day, Max Bupa promises a
hassle free assistance to people when it comes to taking care of medical treatments.
They offer numerous insurance plans which are uniquely crafted to address specific
15. Kotak Child Advantage Plan
It specifically caters to the children that fall in the age group of 0 to 17 years. So an
excellent option to consider for young parents.
16. MetLife Insurance Junior Moneyback Plan
This plan is spread across a 20 year period and 20% of the sum is returned as the child
reaches the 5 th , 10 th and 15 th year respectively.
I assume that I was successful in being able to shed some light on how to choose a
child plan and the top schemes that are running currently in the market and hope that
you would provide the best life to your child just as I did!