Investment advice needed for girl child.

scott1391990

So this is my first time in my life when I have decided to invest for my child's future.

She was born in June this year and since then I am having a hard time choosing what's right for her.
Policybazaar executives seem like they just want to sell anything to the customer. Although they do clear all your doubts and help you all along, but they just won't let you go if you give them your number.
The guy at policybazaar gave me a plan from Max Life Insurance where he said that if I pay 10,000 monthly for 10 years, my child would get around 80-90 lacs (don't remember the exact amount) after 20 years. This policy would include, Life Cover, Premium waiver in case of mishap, and monthly salary to my wife in case of mishap. This seemed all good and I really wanna buy this plan. But it sounds too good to be true.

The Sukanya Samridhdhi Yojna doesn't give waiver off or the monthly salary in case of mishap and thus the policybazaar guy didn't advice on getting it.

Anybody who has more knowledge about these things, please help me as it's my first time.
Should I go with the Max Life Insurance?

gopal_agrawal

There is a govt scheme for girl child through post office. I heard it is pretty good and reliable.

Adijazz

Sukabya is really good and a safe option, rest get some Smart Scholar type thingies for higher education and stuff. SBI Life had approached me some time ago about ir and it seemed good but I don't have kids of my own so I recommended it to a friend rest I dunno

raksrules

I think you should put in Sukanya Samruddhi due to it safety aspect and lock-in period unit she turns 18. Interest rates are decent I think.

About your other plan, that would be ULIP I think. Generally it is told to not mix insurance and investment.
10K per month x 12 months x 10 years = 12 Lakh rupees.

Then you wait for more 10 years and then you get X amount. If you post this query on subs like India investments or so, chances are people will tell you to not do it. I don't know how but you should calculate XIRR on this and if it not good then no point. Also your money is sort of locked in those last 10 years. So may be it would be better in more liquid investments like mutual fund.

gopal_agrawal

For private companies they show the returns at 8% but actual payout is around 3% only. If Max Life is giving a guaranteed written return of the said amount then it would be good but do read all the T&C. Normally the returns are Sum Assured plus bonus at approx 3%.

raksrules

gopal_agrawal said:
For private companies they show the returns at 8% but actual payout is around 3% only. If Max Life is giving a guaranteed written return of the said amount then it would be good but do read all the T&C. Normally the returns are Sum Assured plus bonus at approx 3%.

Also to add, these agents paint a rosy picture and we should do lots of due deligence before we invest.
I feel the 10L invested as SIP in mutual fund over next 10 years and considering value after 20 years will higher retuns.

scott1391990 · 2021-11-17T21:27:10+0530

gopal_agrawal said:
There is a govt scheme for girl child through post office. I heard it is pretty good and reliable.

Thanks. Do you know the name for it?

Adijazz said:
Sukabya is really good and a safe option, rest get some Smart Scholar type thingies for higher education and stuff. SBI Life had approached me some time ago about ir and it seemed good but I don't have kids of my own so I recommended it to a friend rest I dunno

Thanks. Will inquire about it as I have a SBI account as well

raksrules said:
Also to add, these agents paint a rosy picture and we should do lots of due deligence before we invest.
I feel the 10L invested as SIP in mutual fund over next 10 years and considering value after 20 years will higher retuns.

Could you help me out with SIP and mutual funds over PM or whatsapp if not a problem ? I don't have any clue with investment.

xkcd0137

https://www.reddit.com/r/IndiaInvestments/comments/60f8hf
Read the above post for a better idea.

1) SSY

2) invest SIP in an Equity Index fund like UTI Nifty Index meant only for her

3) get a health insurance addon for kid

4) maybe even start a term insurance, her as a nominee

5) don't go for ulips or any other product by insurance companies.