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Child's Future Planning

Like every parent, you too must be overjoyed to watch your child grow. All parents want to give the best possible upbringing to their children. This includes good education and security, in case of any eventuality. Soon, your little bundle of joy will grow up, and it will be time to provide for his or her higher education and wedding.

The purpose of Children’s Future Planning is to create a corpus for foreseeable expenditures such as those on higher education and wedding, and to provide for an adequate security cover during their growing years.

Children’s Future Planning acquires added importance because children’s education and wedding are high priority life goals, which can neither be postponed nor can there be a compromise on the amount.

Good education has always been the passport to a secure future. Today, career opportunities have grown manifold, and there are many professional course that your child can aspire for. However, costs of higher education have also increased exponentially.

Like most parents, you might be saving regularly to ensure a safe tomorrow for your child. However, savings alone is no longer enough. For ensuring adequate funding of your child’s education, you as a parent, need to do two things:

  1. » Invest appropriate amount systematically and at regular intervals

  2. » Provide for a financial security blanket to cover any eventuality

It is never too early to start saving and investing for your child’s future. Especially in today’s context. For example, the cost of a professional degree today is approximately Rs 2.5 lakhs. If your child is one-year-old today, after 17 years when he/she goes to college, you may require a sum of Rs 6.3 lakhs, assuming an annual rate of inflation of 6%.


There are many products which your Financial Planner can use to achieve the above objectives. For example, he could suggest a Children’s Future Plan offered by any good insurance company, to build a corpus for your child’s higher education, and provide for a security cover in the event of the parent’s unfortunate demise.


Children’s plans are also available under unit-linked option. Being unit-linked, they offer access to investments in all kinds of asset classes – equity, debt and cash.