How Are Child Plans Different From Sukanya Samriddhi Yojna ?
Published On Mar 25, 2021, Updated On Apr 26, 2021
Table of Contents
Parents always want a financially secured future for their child. Child life insurance plans and Sukanya Samriddhi Yojana are two great options to invest your money into that will help you ensure a financially safe future for your child. Before purchasing either one of them you must understand what both of these schemes do and how they both are different from each other.
What Are Child Plans?
A child insurance plan offers dual benefits of insurance and savings that will help you ensure a financially safe future for your child. As this a life insurance policy, the parent will be covered under the policy, if the life assured passes away during the policy term a sum assured will be provided to the nominee that can be his/her own child. In the case the child is under 18 years of age, the sum assured payout is provided to the nominee. With the help of this type of insurance plan you can make sure that your child has enough financial support to achieve his/her dreams and aspirations. You can make use of this investment from the child life plan to finance the higher education or marriage expenses of your child or to support their entrepreneurial dreams.
Also Read:- List of Top 5 Child Plans In India 2021
What Is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana is a government investment scheme which is a part of Beti Bachao, Beti Padhao Yojana that is meant to provide an account for parents of the girl child for their girl child’s future expenses. It can be opened by anyone who is a parent of a girl child under the age of 10. The Sukanya Samriddhi Account has a term of 21 years or until the girl child is married after the age of 18. April 2020 onwards, this scheme will propose a cumulative annual interest rate of 7.6 per cent.
How Does A Child Insurance Plan Help You Safeguard Your Child's Future?
A child life plan will help you financially secure your child’s future with following benefits:
- Child life plans promise to provide financial security during the most crucial years of your child's life.
- These types of plans provide various fund options to help you gain substantial returns that will help you provide your child with enough financial resources when the time calls for it.
- Child life plans help in securing the future of your child in case of your unforeseen demise by providing a death benefit.
- Child life plans also encourage disciplined long-term savings which can help you create an investment corpus without any doubt.
How Does Sukanya Samriddhi Yojana Help You Safeguard Your Child's Future?
Sukanya Samriddhi Yojana will help you financially secure your child’s future with following benefits:
- Sukanya Samriddhi Yojana is a government scheme in which an account will be opened for parents of a girl child for her future expenses.
- Sukanya Samriddhi Yojana account can be opened with a small amount of INR 250.
- This scheme helps you save for your girl child’s educational expenses.
- Sukanya Samriddhi Yojana account opened after October 2018 has an interest rate of 8.6%.
- Under this scheme partial withdrawals can be made under special circumstances such as untimely death of the parent.
You May Also Like to Read:- Features of Child Life Insurance Plans
Child plans and Sukanya Samriddhi Yojana both are a great investment option for a financially secured future for your child. The only major difference between the two is that Sukanya Samriddhi Yojana is not a life insurance plan rather an account that will provide high returns to ensure your girl child has enough financial resources for her future financial needs.