In a world increasingly understanding the importance of equality and empowerment, ensuring a secure and promising future for girl children is a responsibility we all share. As parents, we strive to provide the best opportunities for young ones. In this journey, a crucial aspect often overlooked is financial planning, especially when it comes to securing their future and ensuring a bright and joyous wedding day.
In this article, we will delve into the confusion of choosing the most suitable plan for your girl child’s future and marriage, unravelling the layers of protection it offers for your girl child’s future ensuring a worry-free pathway to her happily ever after. Let’s go through the best plans for securing your beloved girl’s tomorrow, one thoughtful investment at a time.
What are Girl Child Marriage Plans?
Girl Child Marriage Insurance Plans are specialized financial plans designed to provide the financial needs associated with a girl child’s marriage in the future. These plans typically fall under the broader category of insurance or savings products and aim to provide a corpus specifically earmarked for meeting marriage-related expenses.
In India, where the concept of saving for significant life events like marriages is prevalent, these plans offer a structured approach to financial planning. They often come with features such as regular premium payments, a savings component that accrues over time, and a maturity benefit that can be utilized to cover various marriage-related costs.
By opting for a girl child marriage plan, parents can ensure that they have a dedicated financial resource available when their daughter is ready for marriage, thereby easing the financial burden associated with this important life event. It also reflects a proactive approach to financial planning, promoting long-term savings with a specific goal in mind, and helps families navigate the costs associated with weddings in a more structured and secure manner.
Types of Girl Child Marriage Plans in India
Here are some types of plans used for financial planning for a girl child’s future in India:
- Child ULIPs
- Sukanya Samriddhi Yojana (SSY)
- Public Provident Fund (PPF)
- SIP Mutual F
unds
- Term Insurance Plans (TROP)
Child ULIPs (Unit Linked Insurance Plans)
Many life insurance companies offer unit-linked insurance plans (ULIPs) that cater to both education and marriage expenses for a child, including girls. These plans often combine life insurance coverage with a savings component.
Here are the key features of Child ULIPs:
| Type |
These plans typically provide life coverage along with the flexibility to invest in various funds based on risk appetite. |
| Flexible Premium Payment |
ULIPs generally offer flexibility in premium payments. You can choose to pay premiums annually, semi-annually, or monthly, allowing for convenient financial planning. |
| Choice of Fund |
ULIPs provide policyholders with the option to invest in different funds, such as equity, debt, or balanced funds. |
| Lock-in Period |
ULIPs typically have a lock-in period, during which policyholders cannot surrender the policy or withdraw the funds. |
| Partial Withdrawals |
These Plans may allow partial withdrawals after a specified lock-in period, which can be beneficial for meeting specific financial needs. |
| Tax Benefits |
ULIPs offer tax benefits under Section 80C of the Income Tax Act for premium payments and the maturity amount is generally tax-free under Section 10(10D). |
Example Scenario:
Let’s take an illustration example case scenario
| Policy Term |
20 Years |
| Premium Payment Term |
10 Years |
| Investment |
Rs. 10000 per Month |
Result:
| Total Investment |
12 Lakhs |
| 100% Guaranteed after 20 years |
Rs. 12 Lakhs |
| Bonuses (Depends on Market Returns of 10 Years) -19% |
Rs. 88 Lakhs (Approx.) |
| Total Lump sum (Based on Market) |
Rs. 1 Crore (Approx.) |
| Death Benefit (In case of death) |
Rs. 12 Lakhs + Bonuses (Based on Insurer) |
Sukanya Samriddhi Yojana (SSY)
This is a government-backed savings scheme specifically designed for the girl child. Launched by the Government of India as part of the “Beti Bachao, Beti Padhao” initiative, SSY encourages parents or legal guardians to save and invest for the future education and marriage expenses of their female children. It offers attractive interest rates and comes with tax benefits.
Here are the key features of Sukanya Samriddi Yojana (SSY):
| Eligibility |
The scheme is available for parents or legal guardians of a girl child below the age of 10 years. |
| Account Opening |
Only one account is allowed per girl child, and a maximum of two accounts is allowed per family. |
| Deposit Period |
The scheme has a tenure of 21 years from the account opening date. Investment Period: 15 Years
Waiting Period: 6 Years |
| Deposit Limit |
Minimum Rs. 250 Per Annum and Maximum Rs.1.5 Lakhs Per Annum |
| Interest Rate |
The interest rate on SSY is announced by the government quarterly. The latest Interest rate is 8%* |
| Withdrawal |
Partial withdrawals are allowed when the girl child reaches the age of 18 for higher education purposes. |
| Tax Benefits |
SSY is eligible for tax deductions under Section 80C of the Income Tax Act. Additionally, the interest earned, and the maturity amount are tax-free. |
Example Scenario:
Let’s take an illustration example case scenario
| Girl Child Age |
1 Year |
| Investment Amount per Year |
1 Lakh |
| Start Period |
2024 |
| Interest Rate |
8% |
Result:
| Total Investment |
15 Lakhs |
| Interest Earned |
29 Lakhs (Approx.) |
| Maturity Year |
2045 |
| Maturity Amount |
44 Lakhs (Approx.) |
Public Provident Fund (PPF)
The Public Provident Fund (PPF) is a popular long-term savings and investment option in India, and it is not specifically designed for a girl child. However, parents or legal guardians can open a PPF account in the name of a minor, including a girl child, and contribute to it on their behalf.
Here are the key features of the Public Provident Fund (PPF):
| Account Opening: |
Parents or legal guardians can open a PPF account in the name of a girl child. |
| Tenure and Maturity: |
The PPF account has a maturity period of 15 years. After the completion of 15 years, the account can be extended in blocks of 5 years. |
| Deposit Limit |
Minimum Rs. 500 Per Annum and Maximum Rs.1.5 Lakhs Per Annum |
| Interest Rate |
The interest rate on PPF is set by the government and is subject to change. Interest is compounded annually and is generally higher than regular savings accounts. |
| Withdrawal |
Partial withdrawals are allowed after the completion of a certain number of years. Loans can also be availed against the PPF balance. |
| Tax Benefits |
SSY is eligible for tax deductions under Section 80C of the Income Tax Act. Additionally, the interest earned, and the maturity amount are tax-free. |
Example Scenario:
Let’s take an illustration example case scenario
| Investment Amount per Year |
1 Lakh |
| Tenure |
15 Years |
| Interest Rate |
7.1% |
| Start Period |
2024 |
Result:
| Total Investment |
15 Lakhs |
| Maturity Period |
2039 |
| Interest Earned |
12 Lakhs (Approx.) |
| Maturity Amount |
27 Lakhs (Approx.) |
Systematic Investment Plans (SIPs)
Mutual funds, especially through SIPs, provide a disciplined way to invest in the financial markets. Parents can consider investing in mutual funds to build a corpus for their daughter’s future needs, including marriage and education.
Here are the key features of the systematic investment plans:
| Flexibility |
SIPs allow for systematic and disciplined investing, making it easier for parents or guardians to contribute small amounts regularly. |
| Diversification |
Mutual funds offer diversification by investing in a mix of assets such as stocks, bonds, and other securities. This diversification helps spread the risk, potentially providing more stable returns over the long term. |
| Variety of Fund Options |
Mutual funds come in various types, including equity funds, debt funds, and hybrid funds. |
| Partial Withdrawals |
Some mutual funds allow partial withdrawals, providing liquidity if funds are needed for specific milestones like education expenses. |
| Tax Benefits |
While SIPs themselves do not offer direct tax benefits, certain mutual fund schemes, like Equity-Linked Savings Schemes (ELSS), offer tax deductions under Section 80C of the Income Tax Act. |
Example Scenario:
Let’s take an illustration example case scenario:
| Investment Amount per Month |
Rs.5000 |
| Tenure |
10 Years |
| Interest Rate |
12% |
Result:
| Total Investment |
Rs. 6 Lakhs |
| Interest Earned |
Rs. 5 Lakhs (Approx.) |
| Maturity Amount |
Rs. 11 Lakhs (Approx.) |
Term Insurance with Return of Premium Plans
A Term Insurance with Return of Premium (TROP) plan is a type of life insurance policy that combines the features of a term insurance plan with a return of premium benefit. If the policyholder survives the policy term, the total premiums paid during the term are returned to them. These returns can help fund a girl child’s marriage and education and other purposes.
Here are the key features of the term insurance with return of premium plans:
| Death Benefit |
TROP plans provide a death benefit to the nominee in the event of the policyholder’s demise during the policy term. |
| Survival Benefit |
If the policyholder survives the entire policy term, the total premiums paid over the term are returned to them. |
| Policy Term |
This term can typically range from 10 to 30 years, depending on the insurer. |
| Premium Payment Term |
The premium payment term is usually the same as the policy term |
| Flexibility |
Policyholders often have the flexibility to choose the frequency of premium payments, such as monthly, quarterly, semi-annually, or annually. |
| Rider Options |
Some insurers may offer extra riders attached to the policy for an extra cost. |
| Tax Benefits |
Premiums paid under TROP plans may be eligible for tax deductions under Section 80C of the Income Tax Act. The maturity amount is generally tax-free under Section 10(10D). |
Example Scenario:
| Investment Amount per Annual |
Rs.60000 |
| Tenure |
20 Years |
| Sum Assured |
Rs. 1 Crore |
Result:
| Total Investment |
Rs. 12 Lakhs |
| Survival Benefits (In case the policyholder survives the policy term) |
Rs. 12 Lakhs + excluding GST |
| Death Benefits (In case of death of policyholder during the policy term) |
Rs. 1 Crore |
How to Plan for Girl Child Future and Marriage
Here are steps you can take to plan for your girl child's future and marriage:
- Set Goals: Define your financial goals for your girl child, such as education expenses, career aspirations, and marriage. Having specific goals will help you determine how much money you need to save and invest.
- Start Early: The earlier you start planning, the more time your investments grow. Starting early also allows you to take advantage of compounding, which can significantly increase the value of your investments over time.
- Emergency Fund: Before focusing on long-term goals, ensure you have an emergency fund in place. This fund should act as a financial safety net in unexpected situations.
- Regular Reviews and Adjustments: Periodically review your investment portfolio and financial goals. Adjust based on changes in your financial situation and market conditions.
- Compare Plans Online: Compare plans online at PolicyBachat to create a comprehensive financial plan tailored to your specific circumstances. A professional can help you choose suitable investment options, manage risks, and optimize your portfolio.
How to Buy the Best Plan for Girl Child Future and Marriage in India
The most effective way to buy the best girl child insurance plans in India online is through PolicyBachat. Here you can compare multiple plans from various insurers in one place. This simplifies the process of finding the plan that best suits your needs. Below are the steps to compare and purchase the best insurance plan for a girl child future and marriage.
- Visit the official website of the PolicyBachat.
- Click on the Investment Plan tab.
- Fill in the requested details such as name, mobile number, and email address.
- Enter your age and city.
- Select the plan which you want to buy. Click on the Proceed button.
- Use the online premium calculator to compare the premium amounts.
- Compare benefits, features, returns, and additional riders or bonuses.
- After comparing the products, select a plan which suits your requirements.
- Then pay for your policy by using an online payment method.
Factors to Consider When Buying a Girl Child Insurance Plan
When buying a girl child insurance plan, it’s essential to consider several factors to ensure that the chosen plan aligns with your financial goals and provides comprehensive coverage. Here are key factors to consider:
- Type of Insurance Plan
- Coverage and Benefits
- Premium Amount
- Returns and Bonuses
- Policy Term
- Premium Payment Term
- Maturity Benefits
- Riders and Add-ons:
- Flexibility in Withdrawals or Surrender
- Waiting Periods and Exclusions
- Tax Implications, etc.
Conclusion
Choosing the best plan for a girl child’s future and marriage in India involves careful consideration of financial goals, risk tolerance, and investment preferences. While individual circumstances vary, a comprehensive strategy may include a combination of savings and investment options. The ideal insurance plan for a girl child’s future and marriage is a well-balanced, diversified approach that aligns with the specific needs and aspirations of the family.
Compare quotes online now at PolicyBachat to give a bright future for your girl child.