As a parent, being there for your child and enabling them to achieve their dreams, matters! That’s exactly what a good ULIP child investment plan does for you – provide the financial protection your child needs, with or without you being around. With a ULIPs at Finserv MARKETS, enjoy benefits that include free life cover, tax exemption, and the liberty to invest in funds of choice.
A ULIP child plan ensures that inflation or unforeseen events do not hinder your child’s future. As a parent, being there for your child and encouraging them to achieve their dreams is what matters the most! That’s exactly what a good ULIP child investment plan does for you. It provides the financial protection that your child needs even in your absence.
The ULIP child plans available on Finserv MARKETS are designed to specifically cater to your child’s education. In this child education plan, you get the dual benefit of saving and protection. You can invest in this policy based on your child’s educational needs, your financial capability, and other monetary goals, and use the funds through partial withdrawal. Moreover, you also enjoy ULIP tax benefits on such investments.
Propelled by inflation, educational costs in India are on the rise. Surveys reveal that by 2025 the cost of studying in an engineering college will be nothing less than 30 lakhs while getting an MBA degree will set one back by 50-60 lakhs. Moreover, with middle-class families spending 60% of their monthly earnings on educating their child/children, having a child investment plan in place is a necessity.
With ULIP plans, policyholders enjoy the benefits of an investment as well as an insurance plan. This child investment plans that you opt for provides the protection your child needs, more so in your absence. Even in the case of an eventuality, rest assured that your child’s future is taken care of with a good ULIP plan.
Though small in terms of amount, your regular investments when compounded will grow into a handsome amount upon maturity. This corpus of funds will help ease the financial burden when it comes to making university tuition fees and other charges involved when studying abroad.
Surveys conducted across the globe show there are more than 1 million students and their families debt with a staggering $1.56 trillion in student loan debt. Not only are ULIPs a great investment option but regular savings will prevent one from falling in to debt by option for loans with exorbitant interest rates.
With ULIP tax benefits, it is the best investment option before one. Right from the initial investment until maturity, the Income Tax Act of 1961 has exempted ULIP plans under section 80C, 80CCC and 80CCD. Save now and secure a bright future for your child.
The following are some salient features of the ULIP child plans available on Finserv MARKETS.
Financial Security for Children
The policy can be taken either by parents or grandparents to secure the financial future of their children or grandchildren.
The term for a ULIP child plan is generally 10-25 years with a lock-in period of 5 years.
Since this child plan is a ULIP investment, a part of the premium goes for life insurance coverage; the remaining amount is invested in market-linked funds.
The policy offers two payouts:
The Sum Assured is paid upon the death of the insured
The fund value is paid upon the maturity of the policy
So, if the parent(s) dies or a critical illness renders him/her incompetent to provide financially for the child, the policy will:
Pay the Sum Assured to the child nominee
Waiver of future premiums
Pay fund value upon maturity
Besides securing your child’s financial future, the policy also offers ULIP tax benefits to the parent(s). They can claim tax deductions on the premium paid under Section 80C of the old income tax regime. The payout upon death/maturity is also tax-free under Section 10(10D) of the Income Tax Act, 1961.
A ULIP child plan is purchased with the long-term intention of securing your child’s financial future. The policy works similar to that of any ULIP investment. A part of the premium paid towards the child plan is used for life insurance cover and the remaining amount is invested in market-linked funds.
In case the insured (who is a parent or grandparent of the child) dies, the insurer pays the sum assured amount under the life insurance component of the policy. Upon maturity, the policy pays the fund value under the investment component. That way, the child receives two kinds of payouts, one in the event of their parent’s death and another after policy maturity.
When buying ULIP child plans with us at Finserv MARKETS, check your eligibility beforehand. Also, ensure that you have the required documents handy.
Eligibility Criteria for ULIP Child Plans
Documents Required for ULIP Child Plans
You will be asked to submit the following documents:
As per Bajaj Allianz Life Insurance Co. Ltd., ULIP funds at Finserv MARKETS enjoy good ratings with approximate returns as high as 25% over a 5-year investment period.
With approximately 2,00,000 crores held in terms of Assets Under Management (AUM), know that your ULIP investments are among the best in the market.
Under the Income Tax Act of 1961, ULIPs are tax-free investments. As a customer, you needn't pay any tax during investment, while your money grows, during fund switches or during maturity.
With ULIPs at Finserv MARKETS, policyholders do not have to pay any charge when allocating funds. Neither are there any return of mortality charges levied.
Policyholders enjoy the flexibility of choosing between 4 investment portfolio strategies thus helping one plan better for higher ULIP returns.
Child Education & Insurance Plans: Buy Bajaj Allianz Child Plans available on Finserv MARKETS to secure your child's future and education. ULIP Child Plans offer tax benefits, life insurance and market linked returns. Get a free quote today!
As we know, the life insurance component of your ULIP child plan provides a predetermined sum assured to the beneficiaries after your death. However, the returns on the investment component can be tricky to calculate. To make the math simple, you can use the ULIP calculator available on Finserv MARKETS.
The returns depend on the premium amount and tenure of your ULIP child plan. Follow the steps below to calculate the same.
Go to the ‘ULIP’ section on Finserv MARKETS and choose the ULIP calculator.
Enter the premium amount and the frequency of payments (monthly, quarterly, annually, lump-sum).
Choose the tenure of your ULIP child plan.
Select the funds in which you want to invest your money (debt, equity, or hybrid)
Enter personal details like age, gender, medical records, etc.
Once you submit these details, the online ULIP calculator will estimate the returns accumulated over time.
Further, we have discussed in brief about child plans in India.
Child plans are designed to cover the financial future of your children, whether you are around to provide for them or not. In India, we’ve three types of child plans.
ULIP Child Plans
ULIP child plans provide dual benefits. A part of the policy premium aims to protect your children like a standard child education plan while the remaining is invested in market-linked funds. Because of this, your child receives dual payouts, one in the event of your death and another on policy maturity.
Child Savings Plans
Having a child savings plan eliminates the risk of market-linked investments. You either pay regular premiums or for a limited period to receive guaranteed payouts by the end of the policy term. These are further classified into two categories:
Depending on your affordability and convenience, you can choose either of them.
Traditional Child Endowment Plan
A child endowment plan is nothing but a traditional life insurance policy that offers security and savings to your children. The policy allows you to fulfil your child’s dream without having to face any financial setbacks. The premiums are invested in debt funds decided by the insurer. The maturity amount is determined based on the fund performance along with bonus payable (if any).
To understand how much you should invest in a child plan, it is imperative to know the importance of quality education for your children. Having a good educational background will allow your child to start a career and earn a livelihood for themselves in the future, thereby making them financially independent.
But before you decide the amount to invest in these policies, ask yourself the following questions:
What are your future financial goals?
What is your monthly income?
What are your expenses?
Do you have any savings?
Do you have any insurance plans?
Answers to these questions will help you make an informed financial decision for your child’s future.
Child plans in India come with an intrinsic benefit known as waiver of premium (WoP). The benefit comes in handy if you (the parent) passes away due to an unfortunate turn of events. During such dreadful and emotional times, be rest assured that your child plan will remain active as the insurer covers the remaining premiums.
Nothing compares to the security of your child’s future. While a child plan helps you do that, the following tips will encourage you to choose the best policy.
It is best to start investing in your child’s future as early as possible. Doing so helps you build a substantial amount over time, giving your children more financial security. Many child plans provide milestone benefits to children when they turn 18, finish graduation, and so on. Moreover, investing in a child plan early in life, say when your child is 5 or 10 years-old, might allow you to pay off their tuition fees for higher education without taking any loan.
Factor in Inflation
Whether you are investing in a child plan or otherwise, it is essential to factor in the inflation rate. The cost of education and medical expenses are enormous. If this factor is accounted for when investing in the best child plan, you will be able to secure your child’s financial future more appropriately.
Choice of Funds
While child savings plans only allow you to invest in debt funds, ULIP child plans give you an option. A part of the ULIP child plan premium is invested in market-linked funds of your choice. These funds can be debt, equity-oriented, or a combination of the two. Depending on your risk appetite, you can proceed to invest in a fund of your choice.
Typically, people with a low-risk appetite choose to invest in debt funds, and those with a high-risk appetite invest in equity funds. So, be mindful of evaluating the risk involved with both and make an informed decision when choosing the funds.
Filing claims was never so simple. Just follow these steps and you’re done!
The ULIP child education plan has helped me secure my child’s future. Now, I don’t have to worry about financing my kid’s higher education. All thanks to ULIP child plan.
Posted on 18 Nov 19
By purchasing the ULIP child plan I could also provide life insurance cover to my child. Thanks to Bajaj Allianz ULIP Plan, my child will be able to realize his dreams.
Posted on 19 Nov 19
I am happy to have purchased ULIP child plan available on Finserv MARKETS. The application process was smooth and the documents required were minimal.
Posted on 2 Jan 19
When I was looking for an investment option to support my child's further educational expenses, I came across the child education plan on Finserv MARKETS. The plan was an ideal investment tool and getting it through the platform was also very easy.
Posted on 06 Feb 20
When my first child was born, my friend suggested to me the ULIP Child Plan. Benefits like option to customize my investment as per my risk appetite and flexibility to switch funds caught my eye. Thank you Finserv MARKETS.
Posted on 10 Mar 20
When my child turned 15, I decided to keep enough funds for his higher education and future expenses. This is when I came across the child insurance plan which not just gave me an opportunity to gain higher returns but also save on taxes. All I had to do was, visit the Finserv MARKETS platform and follow the process and that was it!
Posted on 24 mar 20
With the rising expenses, my child’s education expenses kept worrying me. This is when, I came across ULIP child plan online. The plan would help me save up for my child’s future expenses and manage inflation better. Awesome product!
Posted on 02 Apr 20