Understanding Child Plan

1. Understanding Child Plan

2. Child Plan: Salient Features Child plans help secure your child’s financial future. They are a mix of investment and insurance with flexible payouts. All education requirements, like college and tuition expenses, hobbies and sports, can be covered through these child plans and policies. Features: • Safeguards child’s future even after the parent’s demise • Inculcates a habit of long-term disciplined savings • Lucrative benefits to cater to your child’s career dreams • Immediate withdrawal facility in case of emergencies • Can be customized, depending on the child’s needs.

3. Why Opt for a Child Plan • Helps build wealth through periodic investments • Encourages a long-term savings habit • Caters to the escalating cost of education • Low risk plans available for parents with low risk appetite • Acts as a safety net, in case of unforeseen events • Premium paid is eligible for tax benefits • Offers guaranteed returns on maturity • Can be customized to suit your needs and goals

4. Types Of Child Insurance Plans • Smart Champ Insurance: Individual, non-linked and participating life insurance savings product that supports educational needs. One-time premium or limited premium options are available. Smart benefits in four equal installments, once the child turns 18. • Smart Scholar: Individual, unit-linked, non-participating product, offering twin benefits. You can receive market-linked returns on your investment and life-cover security for your children. This is powered by flexibility, security, reliability and partial liquidity from the 6th policy year.

5. Benefits of a Child Plan • Takes care of the cost of school, college, university and higher studies • Periodic premiums can relieve future financial burden • Lets you take care of mortgage and debt, without impacting your child’s education savings • The plan can act as collateral for personal loans in several banks. • In case of untimely demise of parents, the child can continue to pursue their dreams. • The money from the insurance can be used in case of illnesses, if any. • Can be used to finance hobbies and co-curricular activities, along with academics. • Saves you from breaking FDs and emergency funds to meet educational expenses

6. Things to Consider Before Opting a Plan • To have a long investment-horizon, begin as early as possible. • Consider your risk appetite before opting for a plan. • Understand the goals and requirements of the child before picking a policy. • Calculate a rough estimate of the entire education cost and invest accordingly. • Make sure if offers adequate financial security and premium waivers, when required. • Check the tenure and partial withdrawal facilities beforehand. • Understand the tenure that would be required to achieve your financial goals.