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4 Best Savings Plan for Girl Child in India

dateKnowledge Centre Team dateMay 06, 2021 views131 Views
4 Best Savings Plan for Girl Child in India

Indians are loving their daughters more than ever in the recent few decades. With increasing levels of education in families, a daughter is the apple of the eye that every parent looks forward to having. Of course, there is still a long way to go before there is a complete change in society. To encourage more parents to educate girls, the government also supports saving schemes that support the girls’ overall development. Parents are also continually looking out for the best monthly saving plans in India so that they can build a good corpus for the child’s education. If you are exploring money-saving plans, you may consider these 4 (four) options that are considered to be the best savings plans in India:

1. Invest 4G ULIP

Invest 4G by Canara HSBC Oriental Bank of Commerce Life Insurance gives you peace of mind even when you turn 100. What’s more, you can withdraw partially at planned intervals or when needed. In case of untimely demise, the family need not be stressed for meeting the goal as the company would pay future premiums.

Understand with this example, Mahendra has a policy with a Sum Assured of Rs. 20 Lakhs with an annual premium of Rs.2 lakhs and a policy term of 20 years. He will pay Rs.2 Lakhs in premium each year for the entire policy term and aims to accumulate Rs 1 crore to support his child’s higher education goal.

Scenario 1 - Survival till maturity: Mahendra will receive the fund value from the plan and can meet the child’s higher education goal easily.

Scenario 2 – Death in the fifth year: Mahendra would’ve invested Rs. 10 lakhs in premiums by the fifth year. The following things will happen after his untimely demise:

  • His family receives Rs. 20 lakhs as death benefit from the policy
  • Insurer deposits the next 15 remaining instalments, as Mahendra would’ve done if he was alive
  • At maturity, the family receives the money Mahendra planned for while starting the investment

Thus, You can sleep easy that your daughter’s goal will be met, in any situation.

The plan also comes with additional features to improve your convenience while you are saving for the goal. Some of these useful features are:

  • Automated Portfolio Management: If you are investing aggressively (in equity funds), you would need to make sure that your portfolio risk remains in control. You can either continuously watch the market and manage your investments or choose a performance-linked automated portfolio management option.

    This option allows you to keep your portfolio risk in check and take advantage of market movements even without watching the markets.

    Learn 4 go-to ways of portfolio management in ULIPs.

  • Wealth Boosters: Adding to the growth of your portfolio, wealth boosters are bonus units. These units are added to long-term investors’ portfolios by the life insurer.
  • Systematic Withdrawal Plan: Many higher education institutions need regular financial infusion for a few years for the degree or diploma course. Thus, instead of withdrawing the sum each time you need money, you can use a systematic withdrawal plan. This plan will automatically transfer money every year or quarter into your account from the plan.
  • Best Savings Plan for Girl Child

2. Guaranteed Savings Plan

This is another investment cum insurance plan that supports the family even after the untimely demise of the policyholder. This plan is very much like the Invest 4G plan, except that this plan helps you arrive at a definite maturity value. Since the plan’s benefits are guaranteed, you can arrive at the possible final amount you can receive upon surviving the policy term.

Thus, a guaranteed savings plan is for those investors who want to be extra cautious with their savings and want to stay away from equity markets.

Similar to the Invest 4G plan, a guaranteed savings plan also offers additional growth through bonus additions. Except these additions are direct funds added to your policy value instead of units.

(a) Guaranteed Yearly Addition and

(b) Guaranteed Loyalty Addition

Guaranteed Savings Plan (with double protection) is comparable to the Life Option of Invest 4G but is again different because of Guaranteed Yearly and Loyalty Additions and also extra financial protection for demise due to an accident.

3. Future Smart Plan

This is a comprehensive plan ensuring your child’s education is not affected by any mishaps in the future. The money is invested in high-quality funds and the allocation is regularly observed and rotated by experienced fund managers. As the policy nears maturity, an automatic safety switch ensures funds are parked in relatively safer instruments such as bonds, G-secs, etc.

In case of unfortunate, untimely demise or disability, the company not only pays the sum assured but also pays the future premiums and gives away the fund value on maturity.

4. Guaranteed Income4Life

As the name suggests, this plan gives out a regular stream of income after the premium payment term is completed. If your child will reach Class 12 in another 10 years, investing a bit each year from now will give you a sizeable cash inflow that can support fee payments for engineering, medicine, or any new offbeat courses. Under the premium protection cover available with Guaranteed Income4Life, all future premiums are waived in case of untimely demise.

Say, Mahendra pays an annual premium of Rs.1 lakh for 10 years in the 20-year policy. If he passes away in the 10th year, the family/nominee would receive the highest of the following three amounts:

11 Times Annual Premium 105% of Total Paid Premiums Sum Assured
11Lakhs 10.50Lakhs 25Lakhs

As the Sum Assured is the highest, the nominee gets Rs.25 Lakhs

Although there are several insurance and investment plans available, you must look for guaranteed return plans in India, because robust, comprehensive insurance coverage is no longer about only a Sum Assured. Top money-saving plans look at protecting life, generating an income stream, giving away loyalty additions, and financially supporting the family till the end of the policy period. After all, it is not just about “Sum Assured”, rather it should be “Someone has Assured”.

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Frequently Asked Questions

How Savings Plans by Canara Help You?

Every person has a unique reason to save and invest. With ULIP savings schemes, the company caters to people seeking wealth creation through capital appreciation. Contrarily, the traditional plans can help you save for important life goals without worrying about the fluctuation in fund value. All major savings plan offers partial withdrawal facility that can help you take care of unplanned contingencies. With savings plans from Canara HSBC Oriental Bank of Commerce Life Insurance, you get adequate flexibility while investing and receiving the savings benefits.

Who should invest in a Savings Plan?

Savings plan require you to invest a pre-decided amount on a regular basis. People with a regular stream of income who require a lump-sum amount after a period should opt for a savings plan. Working professionals, self-employed people and businessmen should consider a savings plan to meet their long-term financial obligations. Savings plans are also ideal for people who are risk-averse and want to accumulate funds through relatively safer mediums. These plans inculcate financial discipline in policyholders which make them crucial for every portfolio.

What is saving plan?

A savings plan is likely to be different for everyone depending on the financial goal, risk profile, returns, and investment horizon. If you are young and want to save for your retirement, ULIPs like Invest 4G or Titanium Plus plan would be the best option. You are likely to create a large corpus by your retirement through market-linked returns. If capital protection is your aim, then traditional insurance plans such as Guaranteed Money Saving Plan should be suitable for you.

How much money should you put in savings each month?

The amount that should be invested in a savings plan each month depends on the income, existing financial obligations and the long-term financial goal. If you have a steady income, you should save at least 20% of your monthly income. It is not necessary to invest your entire money into a savings scheme as investments should be diversified. Ideally, you should aim to have a financial buffer of over 10 times of your annual income.

Read More
Saving plan for retirement

The Invest 4G plan with its multiple investment options and various portfolio management strategies for capital protection is an ideal saving plan for retirement.

Saving plan for future

The Smart Goals plan with its unique features such as modification of the sum assured partial withdrawal and fund switch can help you plan for your long-term financial goals.

Saving plan for girl child

The Future Smart unit-linked plan from Canara HSBC Oriental Bank of Commerce Life Insurance is the ideal savings plan for the girl child.

Where should I invest my money?

You should spread your investments across financial instruments. However, having a suitable savings plan in your portfolio is extremely important. It ensures financial stability and also helps in fulfilling short, medium and long-term monetary goals.

What is a good age to start saving money?

When you plan to invest in a financial product, it always pays well to start early. The earlier you start saving and investing, the better. When you start investing early, the capital gets adequate time multiply. Even a small amount invested for a long time can give substantial returns due to compounding.

Tax Saving Investment for retired mother

Savings plans are tax-efficient investment instruments. Samridh Bhavishya traditional savings scheme designed to ensure regular income after retirement is the best savings plan for retired mothers.

Should you use a savings plan for retirement planning?

Yes. Retirement planning is one of the most important financial decisions of our lives. Saving plans offer a host of features that may help you build your retirement corpus. Some of the saving plans like Guaranteed Income4Life offer guaranteed returns at policy maturity. Such returns can act as a regular income stream even after your retirement to help you stay financially stable.

Are saving plans beneficial for managing unexpected expenses?

Yes. Best saving plans in India offer partial withdrawal system that can be utilized during your rainy days. Being financially prepared to tackle such odds will help you manage any unforeseen expenses in a smooth manner.

How to save tax by using savings plan?

Saving plans are known for helping us achieve our financial goals. Best saving plans allow you to grow your wealth while providing life cover. Saving and investment plans are also beneficial for tax planning. Premiums of savings cum protection plans come with tax benefit under Section 80C of the Income Tax Act. Moreover, proceeds received upon the death of the policyholder or upon the maturity of the policy are tax free under Section 10 10(D).

What is the right age to start saving money?

When you plan to invest in a financial product, it always pays well to start early. The earlier you start saving and investing, the better. When you start investing early, the appreciation in capital is significant. Even a small amount invested for a long time can give substantial returns due to compounding.

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How a savings plan can help in building your child’s education fund?

Saving plans help in building wealth over time against the investments that you make. Choose the best savings plan to build an education fund for your child. The best saving plan for kids offered by Canara HSBC Oriental Bank of Commerce Life Insurance eases the stress of planning your child's future by providing a lump-sum payout on the investment.

Read More
How Savings Plans by Canara HSBC Oriental Bank of Commerce Life Insurance can help you?

Every person has a unique reason to save and invest. With ULIP savings schemes, the company caters to people seeking wealth creation through capital appreciation. Contrarily, the traditional plans can help you save for important life goals without worrying about the fluctuation in fund value. All major savings plan offers partial withdrawal facility that can help you take care of unplanned contingencies. With savings plans from Canara HSBC Oriental Bank of Commerce Life Insurance, you get adequate flexibility while investing and receiving the savings benefits.

Read More
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