Child insurance policies are insurance cum investment plans that help secure the financial future of your children and fulfill needs like higher education or marriage. With the help of a child insurance calculator, you can plan for your finances to safeguard your child's bright future.Let us read further to know in detail about the child savings plan calculator.
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Investing in your child's future:Investment will continue with or without you
Benefits of Investing In Child Plan
Waiver of Premium Benefit
Future Premiums are paid by the insurer upon death of policyholder
Flexible Payout Options
Your premiums help your child achieve their dreams through lump sum or regular payouts
Wealth Boosters
Get rewarded with Wealth Booster and Loyalty Bonus for staying invested with us
Zero Commission
We charge no commission when you buy from us. Also buy online & get extra
Tax Benefits^
You get tax benefits under Section 80(C) and no tax on returns under Section 10 (10D)
Investment Flexibility
It offers the flexibility to invest at regular intervals or as a one-time contribution
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Nothing Is More Important Than Securing Your Child's Future
Invest ₹10k/month your child will get ₹1 Cr# Tax-Free*
A child plan calculator is an online tool specifically designed to provide an idea of the fund they would require to fulfil future life goals of their children.
Creating a strong financial backup for your children becomes hassle-free with the use of a child savings plan calculator.
You can estimate the maturity amount of your policy. This way, you can judge whether the sum generated by your child education plan is sufficient to fulfil the future needs of your ward.
Why Is It Important To Use Child Plan Calculator?
Long-term goals like a child's higher education or marriage require a substantial amount of money with proper financial planning. With the help of a child savings plan calculator, an individual can estimate the monthly investment they will require to build the desired corpus.
Here are some of the reasons to consider using a child plan calculator:
Helps fulfil specific goals
To fulfil the needs of your child wants to pursue any specific career or study abroad, you will need to plan and set aside a specific sum.
A child education plan calculator helps you evaluate and analyse the amount of money needed to fulfil such goals.
Helps plan monthly finance
Before investing in a child insurance plan, it is important to understand the financial requirements and budgeting.
With the help of a child plan calculator, you can plan your monthly finances properly and create a strong budget for specific needs of your family.
Inflation check
A child plan calculator also considers important factors like inflation rise, annual income; the age of the policyholder, etc. to estimate the size of funds required.
The inflation rate deteriorates the effective maturity benefits required to secure the child's financial future. Thus, it becomes imperative to consider the inflation rate while doing the calculation.
Facilitates informed decision-making
Using a child education plan calculator allows you to make informed decisions about the type and amount of investment required to meet your child's future expenses.
You can compare different investment options, and choose the best one that suits your financial goals, and risk appetite.
Helps track progress
A child plan calculator allows you to track the progress of your investments over time. You can see how your investments are performing, whether you are on track to meet your goals and make adjustments as needed.
Let us learn the working of a child plan calculator from the list mentioned below:
Input your child's age: determines the time horizon for your investments
Estimate the future expenses: Helps you to estimate the future expenses you expect to incur for your child, such as education, marriage, or other significant life events
Determine the time horizon: Based on your child's age and the estimated future expenses
Determine the investment amount: Calculator will determine the amount of money you need to save and invest each month to meet your child's future expenses
Compare investment options: Allows to compare different investment options, such as mutual funds, savings accounts, or insurance plans, based on their expected returns and risk levels
Make adjustments: You can adjust your investment amount or interest rate based on your financial goals and risk appetite.
How To Use Child Plan Calculator?
Follow the below-mentioned few simple steps to use a child savings plan calculator:
Step 1: Visit Policybazaar Child Plan Calculator
Step 2: Enter the following details in the Child Savings Plan Calculator:
Child's Name
Age of the Child
Step 3: Click on the “Submit” button
Step 4: Select the future career goals of your child among the following:
MBA
Doctor
Engineer
Others
Step 5: Select the type of college/ university you want your child to study:
Premier Colleges
Private Colleges
Study Abroad
Step 6: The child plan will give you the following details upon calculation:
Education fee in 2023
Inflation rate per year
Estimated Amount of Funds in Future (required by the time your child wants to go for higher studies)
Monthly Premium Amount Need to Invest (sum required to reach the education goals)
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Invest ₹10K/MonthYOU GET₹1 Crores*For Your ChildView Plans
Invest ₹8K/MonthYOU GET₹80 Lakhs*For Your ChildView Plans
Invest ₹5K/MonthYOU GET₹50 Lakhs*For Your ChildView Plans
Standard T&C Apply *
Benefits of Using a Child Plan Calculator
Here are some of the key benefits of a child education plan calculator:
Accurately estimates the amount of money you need to invest, considering all the involved factors
Allows you to create a customized plan that meets your child's specific financial needs
Can save you time by doing complex calculations for you
allows you to track the performance, adjustments, and progress of your investments over time
In Brief
A child plan calculator allows you to get accurate estimates of the amount of money you need to invest, customize the investment plans, and save time in tracking their progress.
By using this online calculator, a parent can ensure that they are making informed investment decisions and are on track to meet their child's financial needs in the future.
FAQ's
What is the formula for a child education plan?
The formula to calculate the future value in a child plan calculator is as follows:
FV = PV x (1 + r)^n
Where: FV = Future Value PV = Present value (the amount of money you need to save and invest) r = Expected rate of return n = Time horizon (number of years until the expense is due)
This formula is used to determine the present value of the amount needed to meet future expenses based on your expected rate of return and time horizon.
Which is the best plan for child education?
The table mentioned below lists the best child education plans in India in 2023:
Yes, investing in a child plan is a good option for parents who want to save and invest for their child's future financial needs, such as education expenses, marriage, or other important milestones. Some of the benefits of investing in a child plan:
A child plan is designed specifically to meet a child's financial needs
Investing in a child plan allows parents to take advantage of compounding benefits over time
Offers investment opportunities along with life insurance coverage
Flexibility to choose from various investment options, such as equity, debt, or a combination of both
Offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in *All savings are provided by the insurer as per the IRDAI approved insurance
plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs. ++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
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insurance product offered by an insurer.