Why Invest 4G is Best Investment Option For Your Child

2024-08-02

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The costs of childcare and education are on the rise - and extensively so. According to an Assocham Social Development Foundation survey, the cost of private school education has risen by 150% in the past 10 years. Unfortunately, fixed deposits and other traditional instruments are proving insufficient to meet such humongous expenses. New-age parents are turning to new-age solutions like Child ULIPs.

What is a ULIP?

A Unit Linked Insurance Plan is a unique combination of insurance and investment. You pay a regular premium, a part of which goes towards a life cover and the other part towards equity, debt or balanced funds chosen as per your risk appetite.

One of the best ULIP in the market that you ought to consider right now is the Invest 4G plan.

What is the Invest 4G plan?

Invest 4G from Canara HSBC is a plan that is tailored to help you fulfill the dreams you have for yourself and your family, while also keeping them safe and secure. This ULIP offers a whole world of possibilities with its various customizable options for choosing a life cover, a portfolio strategy, or the type of investment.

Why is it the best investment for your child?

Death benefits

There are two different options for death benefits with this ULIP. You can choose the one that suits your family’s financial priorities.

1. Life and Whole of Life options Under this option, your beneficiaries will receive a sum equal to either of the below, whichever is highest:

Sum Assured minus partial withdrawals
Fund Value (as per value on the date you make your claim)
An amount equal to 105% of all the premiums paid till the death date

2. Life option with Premium Funding Benefit

Payout will be the higher of

Sum Assured
105% of all premiums which are paid till death date

Additionally,

All premiums in the future, when due, are waived off
Fund value will be received upon maturity of the plan.

Maturity Benefits

Upon maturity of your ULIP, your fund value, which will be based on prevailing Net Asset Values (NAVs) will be accordingly disbursed. The returns will depend on the funds you choose to invest in and your portfolio management strategy.

Choice of Funds

Since every child has their own unique needs, the Invest 4G plan aims to cater to each of these needs by allowing you to customize your fund allocation. The Invest 4G ULIP offers 7 diverse fund options. You can select any combination from amongst these and make it a customized ULIP.

India Multi-Cap Equity Fund
Emerging Leaders Equity Fund
Growth Plus Fund
Equity II Fund
Debt Fund
Balanced Plus Fund
Liquid Fund

Portfolio Management Option

Along with choice of funds, there is also an abundance of choice offered in portfolio management strategies. Each one is designed to offer

1. Systematic Transfer Option
2. Return Protector Option
3. Auto Funds Rebalancing
4. Safety Switch Option

As your child grows, their needs, too, will evolve and change. To keep up with these evolving needs, you can switch and redirect your investment amount among the various funds while employing any one of the above portfolio management strategies.

Settlement Option

This is another option for maturity benefit.

You can choose to receive your maturity benefits in instalments at a frequency of your choice, for not more than 5 years.
You can choose from monthly, quarterly, half-yearly or yearly payout options.
This is an extremely useful option if you need money on a periodic basis for your child’s tuition fees and other expenses.

Extra Advantages

Along with an extensive scope of choice, the Invest 4G ULIP also offers Loyalty Additions and Wealth Boosters.

Loyalty Additions are received in every 5th year of the policy, at 0.5% of the average value of the last 60 monthly policy anniversaries.

Wealth Boosters are another additional allocation of units to boost your savings, which will be added every 5 years, proportionate to your total fund value.

Charges

Invest 4G levies a minimum number of charges to ensure your child can derive the maximum possible benefits from your investment. The Invest 4G Plan comes with the ROMC (Return of Mortality Charge) feature, which means that all of the mortality charges paid by you during the policy term will get added back to the fund value upon maturity.

Tax Benefits

In addition to boosting your wealth, investing in the Invest 4G plan can help increase your take-home income too! The Invest 4G ULIP premiums are eligible for tax deductions under Section 80C of the Income Tax Act, while the maturity proceeds are eligible for exemptions under Section 10(10D) of the Income Tax Act. You can use your tax-savings to further invest in your child’s future.

Conclusion

With its diverse range of options in almost every aspect, along with all of its additional perks, the Invest 4G plan is one of the most lucrative ULIPs. Help your child reach the pinnacle of success by investing in the Invest 4G ULIP.

Why Have Child Education Plans Become A Necessity?

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