In all foreign countries, undergraduate courses are seen to be on the costly side, nearly $40,000 to $50,000 in each financial year. These numbers will spike in the coming years and it is important to plan for a child’s educational future as NRIs.
There must be a plan designed by an NRI for his child to have the best education without bearing heavy financial costs. It is important to choose a plan that gives satisfactory returns on child savings plans.
Investing in a child’s plan in India comes with a beneficial feature of Waiver of Premium. Due to this, the child’s future is secured even in case of the absence of the parents. As per this feature, in case of the death of the policy proposer, the family receives an amount 10 times the annual premium in one go for the family to meet the immediate expenses. On maturity of such policies the fund value gets paid directly to the child, as the policy continues like before with all the future premiums paid by the insurer. There is also a feature in a few plans where the child gets a monthly income to meet regular expenses.
There is also an option for investing in market-related child plans like ULIPs, which ensure that the child receives the decided amount at the specified age. The option of equity fund under ULIP regulated child plans is a good medium to receive the benefits for the long term. Partial withdrawals can also be done for the child to meet his needs.
Other than ULIPs there is also an option of investing in Child Capital Guarantee Solution. It is a very convenient and transparent way to plan a child’s education and future. It is the most secure investment medium and the investor gets back all the premiums invested in it upon maturity.
Another option for a child’s financial security is Guaranteed Return Plans. In these plans, the rate of interest can be locked for 15-20 years. Such plans promise returns on various timelines. Most important factor of this plans is that these are tax-free unlike the fixed deposits of banks.
There are many investments options even for NRIs in India that allow them to plan their finances well and securely. Due to these investments and enrolling in various policies, NRIs can ensure a fruitful financial future for their families. It is important for them to have financial assets in India while they work abroad to have enough holdings if they ever decide to come back to India. Besides, it is cheaper for NRIs to invest in India and is beneficial to gain returns out of investments in India. Hence, child’s educational future should be taken into consideration for selecting the ideal investment options by the NRIs.
