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POSTED BY ON January 8, 2013 9:57 am COMMENTS (3)
Hi All,
I have 8 months baby and little bit confused on whether to go for buying a Good Child Insurance policies from LIC which returns some amount at few stages when my daughter turns to 19, 21, 23 & 25 or should I invest in PPF or some other investments like SIP etc.
I am looking to have some Good amount of money when my daughter is in her higher education i.e. Higher Schools & Graduation.
So, please suggest me whether to buy Insurance or PPF or any other investments which will yield good returns after 18+ years.
Regards,
Anand S.
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Dear Anand, here is my take. Please purchase around 15-18 times of your yly income’s sum assured term cover. Now write down what ‘ll be the cost of education today i.e. Jan 2013 itself. Now inflate the figure for the actual need year say 2028, 2030, 2031….. Now compare these calculated nos. with the projected amounts shown to you by any agent in those LIC policies. You ‘ll see a huge short fall. Don’t lose heart.
Now instead of going for these LIC policies, please start investing your money into combination of PPF & MFs, As suggested by others.
thanks
Ashal
You can start with any of the equity balanced funds namely HDFC Balanced or HDFC Prudence or FT Balanced, and these come with internal balancing between equity and debt.
When you want, then you can withdraw the specific amount when you need.
Mixing Insurance and Investment is like Driking and Driving – they just dont go together. So avoid all junk LIC plans.
Take a Term Insurance for yourself to provide to family in your absence and use a combination of PPF and Mutual Fund SIPs to build a strong portfolio. Do Asset rebalancing at frequent intervals to ensure your profits are protected. It all seems complicated but it is not. Good luck in your journey!!