Things you should know when doing Investment Planning for Minors

Why Are Saving Schemes Important for Minors?

When Should We Start Investing for Minors?

What Is the Preparation Strategy to Start Investment for Minors?

What Are the Documents Needed to Invest in Saving Schemes for Minors?

FAQs about Investment Plans for Minors

Which saving scheme is best for children?

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PPF, or Public Provident Fund, is one of the best investment plans for the child. Additionally, equities offer a better opportunity to earn a higher return in the long run, while investing in the stock market is quite risky.

What is a child-saving plan?

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Child saving plans provide dual benefits of investment with insurance. As a parent, you can invest in these plans to save for your child’s future education, marriage, or in any emergency situation.

Can a minor account be closed?

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A minor account can be closed but the account holder or to whom the account is entitled to, should give a prior notice to the bank in written form and all its outstanding payments should be made clear.

Can term insurance help in my child’s future planning?

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Yes, a term insurance plan can support your child’s future by ensuring financial stability in the event of your passing. The payout can fund education, healthcare, or living expenses, helping them stay on track with their goals even in your absence. It’s a smart, affordable step in long-term family planning.

Why do I need life insurance for my child if they’re not earning an income?

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Life insurance for a child isn’t about income; it’s about future planning. It locks in low premiums early, covers funeral costs in the event of tragedy, and can build cash value over time. Some policies can be used later for education or emergencies, giving your child a financial head start.

 

What is better for investment plans for minors, ULIP or mutual funds?

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Both ULIPs and mutual funds have their merits. ULIPs offer life insurance along with investment, making them suitable for long-term goals, such as child education. Mutual funds, on the other hand, may offer higher liquidity and potentially better returns but lack insurance coverage. Using a ULIP calculator can help you compare the projected returns and benefits of ULIPs against mutual funds, especially when planning for a minor’s future.

Disclaimer

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  • This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
  • All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
  • Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.

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