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POSTED BY ON November 10, 2010 9:11 pm COMMENTS (3)
I want to buy a policy for my kid, he is now 1 year old, Just want to know which is best policy to buy for his future, I went through some of the articles related to LIC money back policy and decided not to take that kind of policies, so please let me know what is best policy to buy for his future, If not the policy where can i invest the money.
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Raghu, you can consider other option like term plan + PPF in name of kid and Mutualfund / good stocks.
please note that ppf may not bit the inflation, and also Mutualfund/sotck may be risky (risk with return).
There are 2 options with you.
1. Take term insurance and invest in equity diversified mutual funds. You need to be disciplined investor to invest regularly. Invest more whenever sensex crashes.
2. Another way is SBI Smart ULIP Plan with Waiver of Premium Rider (WOP). So, in case of death of policyholder, the company will pay all future premium. The advantage of ULIP is that you’re not allowed to stop your investments when markets crashes which generally, investors do.
In any way, I suggest you to go for term insurance first and remember, in long term mutual funds will give you more return.
Hope it will help you.
InvestmentKit.com
Don’t take any child policy without doing proper research. LIC’s money back policy will give you only 4-6% returns which does not even beat inflation. Instead take a term plan for yourself and invest in Eq. MF over a long period of time. You will definitely get good returns.
Rakesh