Once you become a parent, you do everything to make sure that your kids get the best in life. A Child Plan is a financial tool which helps you plan a secure future for your child. It makes sure that financial insecurities do not come between your child and his dreams even when you’re not around.
To plan for child’s education, at first it needs to determine how much will be needed in the future and then save and invest towards the goal, by choosing the right asset mix.
Planning for child is a combination of a life insurance plan and savings plan. The savings aspect makes sure that you build a corpus over the long term and get good returns. You can pre-define the stages when you would need these returns, for instance, when your child gets into high school or college or when they get married. The Life Insurance aspect ensures that your child’s finances are taken care of by the life cover, in case of your unfortunate demise.