As parents we want the best for our child, from a good health and education to a job that can provide him/her with all the essentials of life. The best gift, one can give to their children is good education to ensure a bright future, besides imparting morals and values. This will give them a concrete start to secure and shape their future.
Today, education is not what it used to be. It is getting globalized with each passing day and as a result, education costs are rising. Although, banks now-a-days offer education loans, good quality education costs an arm and a leg. Despite being aware of this, parents end up investing for their child’s education in an unstructured manner.
However, the smart ones among us begin preparing for their child’s education, the moment the child is born. After all we have heard the saying that “A good plan today is better than a perfect plan tomorrow”. Making a smart investment at the right time goes a long way in ensuring quality education for your child.
There are ample investment avenues available in the market like equity and bonds market, mutual funds, Post office, EPF, FD’s, life insurance, etc.
However, investment in any of these tools should not be made without a Life Goal. This trend has come to be known as Goal-based investing, where investment is done with an aim of achieving a specific goal.
Why Goal-Based Investment?
Goal-based investment has two basic principles;
1. Fixing a time-frame
2. Differentiating between Needs & Wants
Broadly, goal scan be classified as per a time-frame into short-term, medium-term and long-term goals.
- Buying your first house can be a short-term goal which can be achieved in 5-7 years.
- Child’s education can be a medium-term goal which can be achieved in 10-15 years.
- Child’s marriage and your own retirement will be your long-term goal which you will need to achieve in the next 20-25 years.
These are examples, but are true for the majority of us. We always perform better when we have a set timeline to achieve our goals.
The second part is the ability to differentiate between needs and wants. It means setting realistic goals that can be achieved within a specified time. While our child’s education is a necessity, owning a luxury car is a desire. Goal-based investments help us prioritize our needs over our wants.
The Goal-Based Plan
Saving and investing early in a disciplined manner by opting for a life insurance plan will enable one to create an adequate corpus to fulfill their child’s desires and ambitions in the future.
When it comes to selecting a life insurance policy that not only offers ample life cover, but also persistent growth to meet the future financial needs, we have limited options available in the market.
1. It is available in two variants Wealth Plus and Wealth Plus Care, which provides the cushion of security and growth to meet future financial goals. Hence by saving systematically and investing smartly, parents can ensure that their child’s needs are taken care of even if they are not around.
2. In addition to the product variant features, the plan also offers two investment portfolio strategies that allow you to invest as per your risk appetite and also offers you unlimited switches between your funds to help you maximise your fund value.
3. It also offers tax benefits at the time of investment as well as on maturity. Tax Benefit on investment – money invested in ULIP can be claimed as a deduction under section 80C. A maximum of INR 1,50,000 is allowed under section 80C.
Now, #InvestBefikar for your Childs future!!