With the rise in cost of education parents are left with no other choice than to look for an investment option which could take care of their child's education and marriage. Investing in a child ULIP can be a good option to secure your child's future . Here are some benefits of a Child ULIP.
1. The plan allows investment in debt and equity together. This will reduce risk associated with investing only in equities and will also provide better returns than a debt fund. However, you can chose to invest maximum amount in equities.
2. If you expect the market to fall then you can to switch over to debt funds within the same plan to avoid equity related threats.
3. Payment of premium can be stopped after the lock-in period. But in this case returns will be very less.
4. It provides insurance to the parent. In case of demise of the parent The sum assured is paid to the nominee.
5. In case of demise of the parent all future premium payments will be discontinued but the maturity value will be paid out as decided by the parent.
6. Partial withdrawal can be made from time to time.
7. Sum assured can be chosen by the parent. Returns will be higher if sum assured is reduced.
A child ULIP seems to be a good option but it should not be used for a period of less than 8 years. For short term profits are less due to higher cot of charges. Longer the period of investment better are the expected returns on your investment.
Read - Features That Your Child Plan Must Have…
1. The plan allows investment in debt and equity together. This will reduce risk associated with investing only in equities and will also provide better returns than a debt fund. However, you can chose to invest maximum amount in equities.
2. If you expect the market to fall then you can to switch over to debt funds within the same plan to avoid equity related threats.
3. Payment of premium can be stopped after the lock-in period. But in this case returns will be very less.
4. It provides insurance to the parent. In case of demise of the parent The sum assured is paid to the nominee.
5. In case of demise of the parent all future premium payments will be discontinued but the maturity value will be paid out as decided by the parent.
6. Partial withdrawal can be made from time to time.
7. Sum assured can be chosen by the parent. Returns will be higher if sum assured is reduced.
A child ULIP seems to be a good option but it should not be used for a period of less than 8 years. For short term profits are less due to higher cot of charges. Longer the period of investment better are the expected returns on your investment.
Read - Features That Your Child Plan Must Have…
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