Correct Success: Should I buy child insurance plan for my daughter’s higher education, marriage?

I have a 3 year old daughter. I am planning to invest in a child plan of an insurance company, where the money is paid back in installments at different dates to take care of her education and marriage expenses in future.

I’m 34 years previous working with a non-public sector firm. I’ve a three yr previous daughter. I’m planning to spend money on a toddler plan of an insurance coverage firm, the place the cash is paid again in installments at completely different dates to deal with her schooling and marriage bills in future. Please advise whether or not I can purchase the kid plan? The place ought to I make investments the cash?

-Nikhil Kothar

By Balwant Jain, tax and funding skilled

As a prudent monetary precept one ought to by no means combine insurance coverage and funding. So I’d not advise you to purchase any insurance coverage plan as an funding choice to your daughter’s schooling and marriage objectives, as these insurance coverage merchandise are loaded with excessive irrecoverable fees. As an alternative I’d recommend you to purchase satisfactory time period life insurance coverage, ideally on-line and spend money on mutual funds by month-to-month SIPs in fairness mutual funds.

How a lot life insurance coverage? You’ll have to estimate your future aim worth on the time of her schooling and marriage after contemplating inflation.

Since your aim is at the very least 15-18 years away, it’s best to make investments month-to-month by SIP route in massive cap schemes of mutual funds. My suggestion could be to begin a SIP in Axis Bluechip Fund.

The time period plan will deal with her schooling and marriage wants in case you aren’t round. The mixture of time period plan and month-to-month SIP will definitely beat the quantity which you’d get underneath any youngster plan.

Whereas making investments don’t get carried away by the phrases ‘youngster’ or ‘retirement’ within the product. Mixture of a time period plan and month-to-month SIP can assist you meet any of your long run monetary objectives. Seek the advice of a Licensed Monetary Planner to construct a correct monetary plan for all of your objectives.

(Views as expressed by the skilled.)

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