Are you an NRI parent who has high hopes for the future of your children in India?
While investing in traditional financial products, parents will be worried that their plans will be disrupted due to unforeseen circumstances. This is where customized investment tools to ensure your child’s financial security come in handy.
These plans include whole life insurance, which provides a legacy of 10 times the annual premium, and a premium waiver feature to ensure that the insurance company covers future premiums. Children’s plans start in as little as 30 days, and market-linked plans easily beat the 9-10 percent education inflation rate. With an aggressive financial strategy, you can protect your child’s future.
Let’s take a closer look at how these plans address the unique needs of Non-Resident Indians (NRIs).
Market linked plan
It is important to strike the right balance between risk and safety. Market-linked plans offer NRIs the opportunity to take advantage of market movements and earn higher returns with a growth-oriented approach. ULIP (Unit Linked Insurance Plan) is perfect for those who are familiar with market conditions.
Historically, it has delivered returns of 14-15% in favorable market conditions in India, making it worthwhile to beat education inflation. ULIPs offer flexible asset allocation according to your risk appetite and financial goals. With various fund options and superior market-linked returns, his ULIP stands out as a versatile investment for NRIs.
Income guarantee plan
Prudent investors prioritize stability and predictability and find comfort in a guaranteed child return plan. These plans focus on capital protection and ensure a secure foundation for your financial planning. These plans offer competitive returns of up to 7.5%, eliminating market volatility risk.
The maturity amount is fixed and annual premium payments up to Rs 500,000 are tax-free and contribute to the corpus. Structured payments ensure regular funding for various financial milestones in your child’s life, promoting financial discipline and responsible financial management.
best of both worlds
The Subsidiary Capital Guarantee solution offers a balanced approach. Your initial capital is 100% secured, providing stability, and the potential profit from market appreciation ensures an attractive return on investment. This balanced approach is suitable for investors seeking both security and growth for their children’s financial portfolio.
NRIs can protect their children’s future through the Indian Child Plan, which offers a balanced combination of security, benefits and tax benefits. Whether you choose a guaranteed plan, a ULIP, or a child capital guarantee solution, early and strategic investments pave the way for a financially stable and secure future for your child.
