5 replies on this article “Child Plan for my 1 yr old baby girl !”

1. ashalanshu says:

   November 19, 2013 at 9:29 pm

   Dear Alok, you are alive today. what ‘ll happen if you die tonight? How your wife ‘ll fulfill all the goals for your d’ter and herself? How she ‘ll arrange her daily food and other stuff?

   Thanks

   Ashal

   Reply
2. Ashish Garg says:

   October 31, 2013 at 4:28 pm

   Hi Alok,

   In SIPs, if you are looking at great returns in just 2 years period, it is not fair. You need to look at a longer horizon. Also look at your MF in which you have done SIPs, how they have performed against the market and benchmark. If they are performing negative as compared to the benchmark / market, you may wish to divert to some other good mutual fund.

   Term plan is a pure insurance cover and it does not provide any return, which means whatever you pay as premium will not come back to you after maturity. But in case something happens to you during the insurance term, your family will get the sum insured. If you are looking at insurance policy to generate return on the premium paid by you, then Term insurance is not for you. You first need to understand the difference between life insurance and investment.

   To understand MF, you need to go through various questions asked in this forum in past and you will get to know.

   Ashish

   Reply
3. Alok Rai says:

   October 30, 2013 at 2:27 pm

   Thanks Ashish, I am planing to invest 30000 per year for this in my current scenario. As you mention about SIP, mere pass 2 sip hain 2000 ke, jo two years se hain but unke sale amout abhi bhi 50000 ke pass hi hain aise me mujhe kuch khash profit nahi mila raha hai.

   Appne online term plan for 1 Cr (Rs.12000 per year as premium) ki baat ki hai ye kya hai? kya aap mujhe iski thodi details bata sakte hain? ye kitne saal tak 12000 jama kerna hoga aur return kab aur kitna milega? what is the equity oriented MF and which one is good and give better return?

   Regards
   Alok

   Reply
4. Ashish Garg says:

   October 30, 2013 at 1:11 pm

   Hi Alok,

   Instead of looking at a child plan, you may look at the combination of online term insurance and SIPs in 1-2 MF schemes.

   Term Insurance shall cover the Life Insurance (security) part of your investment while SIPs shall take care of the returns on your investment. Since you are looking at investment for your daughter’s future, your investment shall have a long term horizon of about 15 yrs or more. In such case SIP route to invest in MF shall work well and shall give you good returns over time.

   I have been doing the same for my 4 yr old son. I thought of taking a child plan but later decided against it. The plan was to invest Rs.50,000 every year but I was getting an insurance of Rs.2,50,000 only. So I took an online term plan for 1 Cr (Rs.12000 per year as premium) and for balance of Rs.38,750, I had started a monthly SIP of Rs.3000 in an equity oriented MF.

   Hope I am able to help you to some extent.

   Ashish

   Reply
   1. Alok Rai says:

      October 31, 2013 at 12:30 pm

      Thanks Ashish, I am planing to invest 30000 per year for this in my current scenario. As you mention about SIP, mere pass 2 sip hain 2000 ke, jo two years se hain but unke sale amout abhi bhi 50000 ke pass hi hain aise me mujhe kuch khash profit nahi mila raha hai.

      Appne online term plan for 1 Cr (Rs.12000 per year as premium) ki baat ki hai ye kya hai? kya aap mujhe iski thodi details bata sakte hain? ye kitne saal tak 12000 jama kerna hoga aur return kab aur kitna milega? what is the equity oriented MF and which one is good and give better return?

      Regards
      Alok

      Reply

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