| Author: Aparna 02 Dec 2009 Member Level: Gold Points : 2 Voting Score: 0 |
hi
Thank you very much for such a policy for her/his future.
At present there are various attractive child policy but there are two major option for you regarding Money bach scheme of Annuity scheme.
under money back in the last 18th,19th,20th years of your child like Jeevan Chaya policy with LIC.
Otherwise any annuity policy up to the time period when you need money for your child for education or other.
Finally whatever you select it should be with the LIC of India.
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| Author: Akash Shah 07 Dec 2009 Member Level: Silver Points : 10 (Rs. 8) Voting Score: 0 |
Suman,
It is very considerate of you to plan for your baby's future so early in her life.
However I would advise you to consider other avenues beside insurance for better return.
Child as such doesn't have any insurance requirement and main purpose of taking policy is for saving of money for Child's future.
Insurance company issuing child policy themselves do nothing more than taking premium from insured and invest it either in stock market, debt market or government bonds. Howeevr in the process there is fee charged which is nothing but their profit.
So might as well you can invest directly and save that expense.
Since your child is very young, actual money requirement may be after 15-20 years. In this case investment in equity will be best option as over a long period equity gives best return.
Hence you can choose one or combination of following option
1) Start a Systematic Investment Plan in a diversified equity plan of any reputed mutual fund. Here you will invest a small amount monthly in fund, which over a period grow into big corpus. You can select ELSS scheme which will also give you tax exemption.
2) You can start a PPF account in name of your child. PPF account have a duration of 15 years with a 5 year extension. Interest currently is 8.5% pa and is genrally higher than bank FD. It also provides tax exemption.
3) You can invest in government securities like Kisan Vikas Patra or Debentures of good reputed company.
This method will take more efforts than buying a insurance but in long run it will provide better return.
As a rule of thumb insurance shall be used for protection and investment should not be clubbed with it.
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| Author: Rishi Sood 05 Jan 2010 Member Level: Bronze Points : 0 Voting Score: 0 |
Hi,
I think Akash said it all. I agree with him.
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