As your child grows up, it is natural for them to have dreams that they wish to accomplish and as their parents; it is natural for you to want to help each of those dreams come true. However, our desire to help our children fulfill their dreams is often impeded. Most often, these desires are impeded by a lack of funds.
That’s why it is important to plan in advance and have an investment plan in place which can guarantee returns by the time your child is old enough to act on their own plans. Whether you need money to fund your children’s education or marriage or any other dreams they may wish to fulfill, Unit Linked Insurance Plans (ULIPs) are fast emerging as the most popular investment instrument.
ULIPs are a combination of both insurance policies and investment instruments, and you can allocate a percentage of the premium you pay towards maintaining coverage and the rest towards investment. This way, you not only ensure coverage through a life insurance policy, but also invest in securities which can help you generate returns and thereby build a corpus for meeting future goals.
The Invest4G Plan, offered by Canara HSBC Oriental Bank of Commerce Life Insurance, lets policyholders choose between 7 different funds and 4 investment strategies which can help them zero in on the funds most suited to their risk appetite and thereby generate returns over a time period specified by them. There is also considerable flexibility offered to investors who wish to switch between funds in order to take advantage of market movement and changes in their own risk appetite.
Read on to learn about how a ULIP can help you prepare better and save for your child’s future.
1.Rising Costs of Education:
The cost of education, and especially for higher education, is constantly rising and it is becoming more and more expensive for children to afford education on their own. Investing in a ULIP years in advance helps build up a substantial corpus by the time the child is old enough to pursue higher education. Through regular premiums, the ULIP fund will keep growing and facilitate your child’s freedom in pursuing any path they wish to.
While all of us wish to set aside funds for helping our children fulfill their dreams, often it is not possible to earmark an amount that we should set aside. In between paying bills and in treating our children with annual holidays or little gifts, we end up short of funds that we should be saving for their and our futures. If you invest in a ULIP, you already have an amount earmarked as the premium that has to be paid and don’t have to worry about whether or not you’re saving enough. In case any unplanned emergencies do crop up, you can always make a partial withdrawal from your fund to deal with it. The Invest4G Plan, available on Canara HSBC Oriental Bank of Commerce Life Insurance, is a ULIP that offers considerable flexibility not just in terms of switching funds but also lets you make partial withdrawals from time to time to meet any financial or health emergencies.
3.No Dependence on Loans:
Most children, when they fall short on funds for higher education, usually end up applying for a loan. While loans are helpful in meeting the shortfall of funds for pursuing higher education, they also constitute a debt as the student graduates and begins to work. Education loans usually come with a high rate of interest and are steep to pay off. The ability to repay them rests on the student but if they are unable to find a high-paying job, they may end up defaulting on the loan which will impact their credit score negatively for the rest of their lives. If you begin investing in a ULIP well before your child has to start looking for funds to pay for their higher education, you can easily do away with the need for them to avail an educational loan. This will prove useful over the long term as well since children will not have to deal with debts early on in their professional career.
4.In Case of Any Eventualities:
Regardless of the amount of planning, humans can’t ever completely plan for the future and accidents can happen to the best of us. Even if you are no longer around, your children should have the ability to fulfill their dreams and a ULIP acts as the perfect tool for this.
A ULIP will help guard your child’s aspirations and help fulfill their dreams, even if you are no longer around to help them yourself. Buy into the Invest4G Plan, offered by Canara HSBC Oriental Bank of Commerce Life Insurance, today and ensure that you have adequate coverage and funds for helping your child fulfill their plans.