Once you become parents, what’s the one thing that is constantly on the top of your mind? Of course, the well-being and protection of your kid. Having said that, a child’s education holds a lot of significance in the life of every parent. This is because every parent wants only the best for their kids which makes them save more for their future goals and aspirations.
The best way to ensure your child’s secure and safe future is by investing in a Unit Linked Insurance Plan [ULIP]. A ULIP plan not only ensures protection of your family but also seals the deal with financial security. It may also turn out as the safest option if you follow these 5 steps in order to fund your child’s future education
Estimate your budget
Estimating your budget is the most crucial step as it lays the foundation of the future of your kid. Moreover, your entire corpus acts as the basis of his future education hence see to it that you generate enough income that not only fulfills your needs but also your kid’s. In order to estimate your budget consider factors like the list of universities, the stay, fees and additional charges of the university, and so forth.
Decide an investment amount
Once you decide the required amount of corpus for your child’s future education, break down the investment amount into a monthly figure. The best way to do so is by taking the help of a ULIP calculator which will give you the estimates of your final investment goal. If you start investing with a small sum of amount, then you can further benefit with the help of a compounding effect.
Consider your risk appetite
Investing in your child’s future education with the help of a ULIP ensures that your risk appetite is in check. ULIP insurance ensures that your encashment in funds is humongous. If you want the same, then see to it that you invest in equity funds. However, if you are someone who doesn’t wish to take risks, you can easily switch to debt funds.
Choose the best ULIP plan
With a plethora of available child policies in the market, there is a possibility to get confused due to too many options. In order to avoid confusion, invest in a plan based on the past performance of the ULIPs as well as your final goals of investment. Moreover, select a plan that not only offers child policies but also a lump-sum amount on the date of maturity. The best ULIP plan will waive off the premium during the death of the policyholder.
Opt for ULIP insurance
For child policies, it is advisable to invest in ULIPs. Investing in ULIPs not only ensures the protection of your kids with a provision of a life cover but also with the benefits of the higher returns. For instance, a ULIP Policy combines the advantages of insurance and investment together in order to earn higher market returns. Regardless of the scenario, your kid needs a better life and with the help of a ULIP, you ensure the best one.
As parents, we can go to any extent in order to provide our child with the best. That’s when ULIPs come into the picture. Make ULIP Insurance your one-stop destination for your kids as it will not only protect them in times of financial exigencies but also allow them to soar higher, at the same time.
Now that you know how to map your child’s future education with ease, when are you planning to make an investment? Start today with the help of ULIPs as it not only offers the benefits of protection but also growth. Since the needs of your child will be in check, the question of his/her future would no longer be an issue to you.