Why you should invest in ULIP-based child plans

 Why you should invest in ULIP-based child plans

Don’t we all want our kids to be the happiest? Right from looking after their routine expenses to completing their education, you are a financial role model of your little ones. While we always look out to fulfil every need of our child, there are times when it’s challenging to manage their finances due to financial obligations. However, no matter how rough our finances get, our children are the apples of our eyes. 

To help you achieve your kid’s financial needs, many insurance companies offer child plans. Let us understand why you should invest in child plans:


  • Rising educational costs


Let’s begin by taking a simple example of higher education of your kid. Suppose your child wishes to pursue a post-graduation course in a premium management institute like IIM. If you get a chance to get in to an IIM, you should be prepared to pay over 23 Lakhs as fees. On the other hand, if your child wishes to go to the United States for higher education, you should analyse the rate of education inflation in the US, which is approximated 5%. Moreover, you should consider the foreign exchange rate movement in the US dollar as well as in the Indian rupee.


  • Well-planned strategy


Having an advanced planning when you’re entering the new phase of becoming a parent is essential. An excellent way of developing a well-planned strategy is by investing in child plans. With child plans, you can secure your child’s future with adequate funds. It provides pay-outs when your children reach the milestone of their life. 

Irrespective of several available child plan options in the market, a ULIP-based child plan proves useful to meet the requirement of your children. Hence, it becomes important tounderstand what a ULIP-based child plan is:

What is a ULIP-based child plan?

Under a ULIP insurance-based child plan, you can secure your child’s life goals.One interesting benefit of this product is that you areprovidedwith a waiver of premium. For instance, during an unfortunate event like your demise, the premium will not only be waived off but also will be paid by the insurer. Moreover, the policy will continue in the same manner even after your death.

Since the policy premium is being paid for by the insurer after your demise, the money keeps growing every single day. Due to the accumulation of funds as per the investment decision made by you, your child will never fall short of funds at the maturity. That way, your little one can accomplish his or her dreams with the generated funds.


Being a parent is the most exciting as well as the scariest decision. Parenthood teaches us not only the importance of unconditional love but also patience. For many, having a child is expensive. Hence, invest in the best ULIP based child plans to overcome the financial setbacks during the parenthood.

Child plans provide the right financial security during the growing phase of the life of every kid. With child plans, you can ensure a sufficient flow of funds to cover the educational needs and daily expenses in the absence of the parent.


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