Why is it Important to Invest in a Child Plan to Secure Your Kid's Future?
In emergencies like the Covid-19 pandemic, financial protection has played a particularly essential role to mitigate risk
The unpredictable nature of human life can motivate people to invest optimally and secure their future. In emergencies like the Covid-19 pandemic, financial protection has played a particularly essential role to mitigate risk. When you think about financial protection, you cannot help but factor in insurance. Insurance plans have helped people keep their loved ones secure for generations. But insurance plans are no longer limited to life protection only and are increasingly being used for investment purposes as well. Unit Linked Insurance Plans like Wealth Ultima by Edelweiss Tokio Life is the perfect example here. The plan is proof of how a ULIP can be a viable child investment instruments that can help cater to diverse needs.
A Unit Linked Insurance Plan (ULIP), such as Wealth Ultima, provides the benefit of insurance and investment under a single policy. By purchasing the plan, you can invest in the market as per your risk appetite and accumulate wealth over time. At the same time, the insurance component of the plan guarantees protection to your child.
Wealth Ultima can help children fulfil their dreams even in the absence of their parents. The policy offers a cover of up to 100 years of age. Moreover, the plan offers a Systematic Monthly Plan with monthly premium payment options for protection from unpredictable market fluctuations.
ULIPs: Kill not two but multiple birds with one stone
Your children can face a number of financial emergencies in the future. Right from health expenditure to education and maintaining their preferred standard of living, your child’s needs and wants are bound to rise with time. Factoring in inflation, it can be hard to cover all these costs without prior planning. But the Wealth Ultima ULIP can help you here. The plan is a great investment tool that can offer high returns. It allows you to invest as per your unique risk capacity and multiply your money over the course of time.
Wealth Ultima also offers loyalty additions and guaranteed additions from the 6th policy year onwards and booster additions every 5 years from the 10th policy year onwards. These are added as a reward for staying invested for the long term and further enhance your returns. On maturity, you can use the accumulated money to cover health expenses, education costs, wedding costs, and a lot more.
ULIPs are also great tax savings tools and can help strengthen your overall savings. Wealth Ultima offers tax benefits under Section 80 (C) and Section 10 (10D).
The plan is highly flexible too. In fact, you can surrender your plan if you have a pressing financial need and require the funds immediately. Your money does not get stuck and is available to you as and when you desire it. The plan also offers a Systematic Withdrawal Plan that allows you to take regular payments from the 10th policy year onwards.
With one plan, you enjoy multiple benefits and stay well-prepared for several future financial needs.
Live stress-free knowing your child is always safe
Life can be unpredictable, and you may not be around to take care of your child forever. ULIPs provide your child with financial protection in your absence, making sure that they are never left without a financial cushion to fall back on. Policies like Wealth Ultima offer a unique Little Champ Benefit that ensures that the policy remains unaffected in the unfortunate event of your death. In fact, the plan also covers death due to Covid-19. Moreover, on maturity, your child can use the funds to cover all their needs and live a dignified life with no compromises.
Suitable for all income groups and investment strategies
One of the reasons why ULIPs come out as the ideal investment product for most people is because they offer different options to different income groups. Plans like Wealth Ultima start with a minimum premium of ₹3,000 per year only, making it accessible to all individuals. Moreover, you can invest in high-risk equity funds or low-risk debt funds and make switches in between as per changing market situations and your age and income.
Wealth Ultima can also be customized as per your requirements. The plan allows you to manage your funds under the Systematic Transfer Plan. If not, you can select the Life Stage and Duration-based Plan. The insurance company manages your funds for you under the former, and your investment is shifted to a bond fund under the latter. The choice is entirely yours!
To wrap it up
The Wealth Ultima Plan is, in various ways, the ideal choice for safeguarding the future of your child. It can offer tax benefits, assured high returns, the safety of investment, flexibility, life protection, and a lot more. In addition to this, you can start investing in it with a small amount and gradually increase as you see fit.
Leading players like Edelweiss Tokio Life are bringing affordable ULIPs to the market for all investors with plans like Wealth Plan. Make sure you make the most of it and save adequately for your child’s future.
Disclaimer: No Deccan Chronicle journalist was involved in creating this content. The group also takes no responsibility for this content.