Child plans are no different from other endowment and money back policies except for their names. After deducting agent commissions and administrative charges, the premiums invested in safe debt options offer sub-optimal returns, about 6-7 per cent.
Buying a child plan is more of an emotional decision than a financial one. However, it may not be worth it, given the low cover and low return they offer.
Personal finance advisor Sanjay Matai deciphers the best options for a child's insurance plan.
Personalfn lists out the ways one should plan their child's future. It lists out the kind of investment options one should go for so that child's future and education is secured.
Every little step your child takes, your smile becomes wider but slowly you become more aware of your responsibilities.