A child insurance plan provides various benefits to the policy holder. In India, there are accidents after every 30 seconds and it is threatening parents to secure their child future. Also,there are some financial reasons for which parents have to take care of their children. For fulfilling these needs, parents are moving toward child insurance plan. A child insurance plan provides various benefits to th child. Lic child plan is one such plan which offers wide benefits to the policy holder. Because of the increasing cost of the education, parents are worrying a lot. Child insurance plans give a good corpus to the policy holder by investing in the premiums in a fund and it can be either endowment plan or ULIP based plans. LIC child plan provides the life cover to the policyholder and insurance company waves off the future premiums and continue with the policy on behalf of the policy holder. Moreover company pays a lump sum amount to the policy holder after certain time period for the maintenance of the child.
Benefits of Child insurance Plan
- Financial Protection- LIC child plan provides financial protection to the policy holder in case of death and waves off the entire premium and continue with policy on behalf of the policy holder. Financial benefits matters most for parents to take caretheir children.
- Lump Sum Payment- LIC child plan gives lump sum amount to the policy holder after certain period to meet the needs of the policy holder and it helps the child to meet his financial needs after certain benefits.
- Maturity Benefits- You can take a child insurance plan for certain period considering important stages of your children. LIC provides the facility of the maturity of the policy at certain age of the child like 18, 21, 25 etc. It helps the child parent with good amount to meet child needs like professional course, marriage and many other things etc.
- Partial Withdrawal Facility- LIC child plan provides you the facility of maturity benefits after certain age but what to do if you need the money before that time. LIC provides the facility of partial withdrawal facility where you can withdraw some percentage amount after certain period of time.
- Tax Benefits- If you are a tax payer and pay your taxes annually. You can have tax deduction benefits as per the tax rules. You can save your taxes by investing in LIC child plan and your investment will be tax free and you can have tax benefits.
Tax Saving Plan
Tax saving is a big concern these days for millions of house hold in India these days. There are many tax saving plan introduced by the various companies in the market. But LIC is offering the best Tax saving plan as there are very less hidden charges of LIC in the policies. A tax saving plan is one that offers mainly the tax advantage to the policy holders and provides some other benefits like maturity benefits, partial withdrawal etc. to the policy holders. Every year there is increase in the people who are paying taxes. People wish to save taxes to increase their earned income. You can invest in the tax saving insurance plan which offers wide variety of investment opportunity too in the unit linked insurance plan. You can invest in ELSS( Equity linked Saving schemes) and can avail tax benefits and as per industry experts ELSS offers the best tax saving opportunity. In such schemes, investors have both the benefits, capital appreciation and tax benefits.
What should you look in ELSS fund or Tax saving schemes?
If you are willing to invest in the ELSS, you should look at the approach of the fund manager before investing your money. You should also look at the some other things like portfolio of the fund, fund manager’s approach in the investment and expenses ratio of the fund and also how much is the fund volatile in the part. These are some basic homework that you must do before you get into the ELSS fund. You will have better earning opportunity in the ELSS schemes as compared to the traditional saving plans.
There are two approaches of the investment either equity linked plans or traditional schemes. If you want to completely safe your investment, you should invest in traditional investment plans but if you want to earn some more money over your investment by investing in the equity linked investment plan but you will have to do some home work before it as we discussed above.
