Financial PlanULIP

How to secure your child’s future with ULIP investment

In the world full of race, we surely want our children to win it. We all dream of our children having the ideal future ahead. Education plays a huge role to secure and plan a better tomorrow for them. For the same, as a parent, you work hard to give them all that you can. However, there are times when our hard work does not seem to serve well for our children. The reasons might be different, with one of them being the constantly rising education costs.

For that would you put the future of your little in danger? Well, you certainly would not. This is the reason, why many people start investing for a better and secured future.

ULIP plans are financial plans for investments and assuring the future of your child and get their life goals done. With life cover and investment benefits, these plans give you a chance to increase your future returns by giving you a choice for choosing your investment. An investor can select between equity, debts and other funds for better opportunities at gaining future returns and giving your children a better and brighter future.

If you are still wondering about how ULIP investments help in giving your child a better future, here are some of the reasons that are going to answer all your confusions –

  1. Small starts – When it comes to investments, a lot of us are scared for starting them because they involve high costs. With ULIP plans, that is not the case. You can start with small. You do not have to pay large premium amounts. You can choose the amount of premium that you can pay on the intervals that you select at the beginning of the policy. The investment-plans do not make you compromise on your present for your future that you are uncertain for.
  2. Right to choose your investment plan – If your investment plan starts to become a burden for you, it certainly is of no worth. ULIP investments give you a chance to choose your plan as per your risk taking appetite. If you see the market conditions going against your risk taking will, you can choose to invest in debt funds or a mix of equity and debt which involve less amount of risk. However, if you are a high risk taker, you can go for the equity funds.
  3. Switch your funds – Unlike other investment plans, ULIPS give you a chance to switch your investments. For the times, when you stop finding your current investments inappropriate for you, you can choose to switch your funds. For example, if you find that the evolving market conditions are not fruitful for your current investment in equity funds, you can anytime switch your investment to debt fund or hybrid funds. The same can be done when the situation goes against your debt funds. You can switch them with equity funds. This helps you to not fall a prey to the wrong investments and select your investment plans as per your need and comfort.
  4. Partial withdrawals – Making ULIP investments can give you an assurance that at the moments when time goes against you and the need for money is urgent, you have got the back of your savings you have been investing in the ulip plans. At the moments, when need for money is urgent, you can make partial withdrawals from your ULIP plans. There is usually a lock in period for a policy, the minimum being 5 years. A policyholder, though, cannot take out the money prior to this lock in period. Once the lock in period is completed, you can easily withdraw the money from your premium amount and fund your difficult situations.
  5. More investments through top ups – For the times when you have extra savings, ULIP gives you a chance to invest the same in your current ULIP investment plan through top up premiums. With this facility, your amount that you are actually paying for the premium will rise by adding an extra sum of money through top up premiums. Top up premiums not only use your extra savings in a better and productive way but also increase your pre decided policy return thus resulting into better ULIP performance.
  6. Life cover – As we all know, ULIPS are not only investment plans but also include life cover. The premium amount that is paid against the policy is further divided into two different fractions. One of them goes for the investment while the other one is for the life insurance. In that case, at the time of any misfortunate event, you children will get the amount of money you have been investing for them for a bright future. At the death of the policy holder, child gets a benefit of choosing the best and most appropriate option of return for them. For example, one can choose the option of getting the full amount after the death of the investor.

With the above listed ways, you can be sure of making and securing your child’s future in all the possible ways. With a continuous habit of saving that ULIP plans inculcate in the policyholders, the future of you along with your family gets secured by investing in this procedure of investment.

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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