children's plan

Dear Sir I have taken TATA AIG's Star Kids policy, annual premium is Rs 50K applicable for 10 year. Is it a good policy to have or can I look at other instrument such as PPF for my kid. This is a regular insurance plan and not linked to MF. Also there is a substantial loss if we preclose anytime before 6 - 7 years. Pl. advaice

asked Jun 11 '12 at 13:34 by rajendra_n 1246

There is no insurance plan which is good for children future.

You need investment plans and not insurance plans to make a good sum after 15-20 years. Such insurance plans can only provide 5-6% returns.

You need to get 10-12% return to best utilize your investments and beat inflation. Even PPF would give you maximum 8-9% returns.

Best would be to invest into a mix of Equity diversified mutual funds, PPF/NPS and somewhat gold ETFs.

answered Jun 12 '12 at 00:31 by Pankaj Batra 5.2k320


Know someone who can answer? Share a link to this question via Email, Twitter, or Facebook

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text]( "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported



Asked: Jun 11 '12 at 13:34

Seen: 1,784 times

Last updated: Jun 12 '12 at 00:31