Planning Your Child's Future? Here's how child insurance plans have an edge over other investments

“We both work and saving money for our kids is our top priority.”

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In modern society, the majority of parents are worried about this. They begin saving for their child using a variety of items, including bank deposits, real estate, and mutual funds, with this goal in mind. However, is the strategy reliable enough to satisfy children's needs when they genuinely need the money? Let's check if there is another option.

Public provident funds (PPFs), mutual funds, shares, gold, and real estate are examples of self-funded financial vehicles. But, none of these investment options ensures that the child will have access to the necessary amount of money at a specific age. To make full use of these investment options, one needs to remain alive and continue funding them to meet kids' needs.

For example, one needs to accumulate a certain sum, say, Rs 20 lakh, for a child aged 1 year when they reach 21 years of age. Through mutual funds, at a conservative rate of 12 per cent, the parent will have to invest Rs 25,000 per annum. However, to accumulate such an amount, one needs to remain alive over the time period. An untimely death can jeopardise this objective.