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8 Things to Consider Before Buying Child Insurance Plan

Insurance Plan

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Sukanya Samriddhi Yojana Plan is one of the financial products launched by the Government of India to help parents and their children to save for the girl child’s future and to encourage them to invest in her education and other beneficial activities. The plan allows you to deposit money in your daughter’s name, who can withdraw it after attaining the age of 18 or marriage, whichever comes first.

Here are some of the reasons why you should invest in a Sukanya Samriddhi Yojana plan to secure your daughter’s future.

Easy Tax Deductions

Even though the Indian government has made it mandatory for all companies to deduct TDS on payments made to contractors, there are still some deductions that can be availed without being taxed.

These are either deducted from your salary, paid by you as a business expense, or covered by an insurance policy.

Many deductions can be taken advantage of but we will mention some of the most common ones in this article for you.

An additional investment plan for your daughter

The Sukanya Samriddhi Yojana Plan is an investment plan introduced by the government of India to provide financial assistance to parents to save and invest for their daughter’s futures.

It is a specially designed scheme that offers a high rate of interest, tax benefits, and other incentives.

To know more about the Sukanya Samriddhi Yojana benefits, read on.

The Sukanya Samriddhi Scheme is designed to encourage parents to make provisions for their daughters’ marriage and education needs.

The scheme offers an interest rate of 8.4% per annum on deposits made under the account if it has been operational for at least three years from the date it was opened, which can be extended up to five years from the date it was opened.

Either of the parents can open the account

The Sukanya Samriddhi Yojana Plan is a savings scheme that is aimed at women to help them save for the future and provide their children with financial security. The account can be opened by either parent, but only females are allowed to operate it. The account can be opened by either of the parent, but only females are allowed to operate it.

Women can open an account and add a guardian as an authorized signatory who will act on her behalf when she cannot do so herself.

A sum of ₹15000 is given from the Government as part of the incentive which is transferred into the girl’s bank account within 15 days of opening her bank account under this scheme.

You earn interest on your contribution

You can also contribute more than the minimum amount to get a higher interest rate. For example, if you invest Rs. 500 per month, you would earn around a 4% interest rate on your account balance. However, if you invest Rs. 1,000 per month, you would earn around 8% interest rate on your account balance.

Recurring Deposit Can be Made in Many Installments

You can start Sukanya Samriddhi Yojana Plan by depositing any amount at any time. A recurring deposit can be made in many installments up to a maximum period of five years.

E-Statements Help Track Expenses Easily

The Sukanya Samriddhi Yojana Plan is an investment plan designed to help parents save money for their children’s education.

The E-Statement helps you track your expenses easily and monthly plans can be changed or canceled at any time.

Any Amount Can be Invested in the Account

The Sukanya Samridhhi Yojana is a savings plan that was started by the government of India to help parents save money.

The plan can be opened at any age, even if you are already retired. Additionally, the account can be used to fund a girl’s education (hence the name Sukanya), which will help her enter adulthood with less debt.

Lock-in Periods Are Guaranteed Until Maturity Age!

A lock-in period is a time before a financial product matures or expires. When you make investments, your money is locked away until it’s time to withdraw the funds.

In the case of Sukanya Samriddhi Yojana, there are no lock-in periods which means that even if the bank offers attractive rates and schemes, you can always withdraw your savings at any point in time.

The future is unpredictable. That’s why you need a guaranteed lifetime income stream to secure your daughter’s future. Hence, apart from investing in a Sukanya Samriddhi Yojana Plan, you must also look at other avenues that can guarantee income on your investments.

With iSelect Guaranteed Future Plan from Canara HSBC Life Insurance, you’ll have peace of mind knowing that your family will be taken care of, even when things do not favour your circumstances.

With iSelect Guaranteed Future Plan, you can protect yourself and your loved ones against disability or death by ensuring there’s always enough money to pay the bills. By investing in the iSelect Guaranteed Future Plan, you would have ensured a secure future and you’ll never have to worry about running out of money. Hence it is highly recommended that you start investing in your and your family’s future by enrolling in an iSelect Guaranteed Future Plan from Canara HSBC Life Insurance!

Conclusion

If you are thinking about starting your family, it’s very important to start saving for the future of your child as early as possible. While you can start an account in their name once they’re born, it’s better if you start saving while they’re still inside your belly so they can reap the benefits throughout their lifetime and achieve financial security in the future.

Sukanya Samriddhi Yojana is one of the most rewarding savings plans created by the Indian government that enables parents to invest in the future of their girl children. As they say, two is better than one – invest in Sukanya Samriddhi Yojana along with investing in iSelect Guaranteed Future Plan from Canara HSBC Life Insurance and make your and your child’s future full proof, today!

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