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Saving for Child Future

Saving for Child Future

All parents dream of fulfilling all the wants and desires of their kids. They want to offer the simplest to their juniors. Best of education, better of toys, better of health, better of everything! The only problem with these best things is that they have the best price tags too!
But what can the parents do, after all it is about the child’s future. Or is this really the case? Maybe something could have been done. Think of a parent who started planning for his or her kid even before the little one was born and began investing when the small one arrived. They had an extended time (about 18 years for higher studies and 25 years for marriage and house). It is no-brainer in investment world that the earlier we start, the higher it’s, and for a basic reason – the magic of compounding.

Benefits of Investment Plan for Child

Child investment plans in India offer two main benefits: saving money for a child’s future and creating a financial cushion to help them meet unexpected expenses. Apart from these, there are a plethora of other benefits as well that this investment policy offers. Let’s dive deeper to know the details:

Child’s Education

The rising inflation is leading to increased education expenses. With this, arranging funds to meet the expenses of higher education can be quite difficult. A child plan, if taken during an early phase, can help you easily accumulate enough finance to offer the best education to your child.

Medical Treatment

Child plans taken at the right time can be a saving grace in the case of illnesses or medical emergencies that requires expensive treatments. Not only do child plans allow for savings to be accumulated, but they also provide additional returns. These returns can be used to support the child in terms of providing for their healthcare needs, alleviating any financial burden.

Tax Benefits

Many investment plans for children offer tax benefits, such as deducting contributions from taxable income. This can help to reduce your family’s overall tax burden.

Financial Support in the Absence of Parents

In the event of a parent’s death, surviving children will receive the maturity amount upon completion of the policy term. Additionally, they will receive annual payments throughout the duration of the policy from the year of passing and no longer need to pay premiums.

Right Time to Make Investment for Your Children

Every parent wants to provide the best they can for their children, and it is essential to plan for their future financial needs as early as possible. The simplest and most effective way to do this is to start saving now. Even small amounts saved up regularly can provide a large amount of money for your children and dependent family members over time, thanks to the power of compounding.
Early saving also gives you more time to invest in those options that yield high returns in the long run. It is never too late to start saving for your children’s future, and beginning as early as their formative years will help you amass enough money to fund their needs as they grow older. So, be sure to lay out your savings plan today and reap the manifold benefits of starting to save early.

For more information, feel free to contact us.

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