I was looking for a Child Plan for my kid, I researched a bit, met a few agents, found all of them really fcukall, nothing was clear or was any decent returns promised, also probably coz they are bound by IRDA not to promise any returns, all projection were some excel games.
Also one does not know if any of these insurance companies will be around, remember AIG, Fortis etc.
IMHO the best option is to invest in a small flat.
Buying a small flat has the following benefits :-
- Asset Appreciation (Average 10-15% annually)
- Tax Saving on Principal repayment.
- Rental Income can offset your EMI payments a bit
- Reverse SIP (Take Loan & Invest) is better than SIP (Regular payments).
- Inflation Game – Assume interest Rate is 10% and Rate of Inflation is 10%, So you are virtually paying 0% Interest rate compared to the money put in a bank.
- Weekend outings and make more friends.
- Historically property has always given decent returns in India.
If you want to take insurance, buy a simple term insurance and yes, do keep investing in equities but not with the funds which you’ve earmarked for your kids.