In ULIP plans, the investment risk in the investment portfolio is borne by the policyholder.

Investing in a child insurance plan might not seem like a good idea because a child does not have financial value (there is no insurable interest) nor are there any liabilities or dependents. However, there is a misconception that the child’s life is to be insured.

The truth is that in a child plan, the parent is the life assured while the child is the nominee! A child plan is a popular financial vehicle to build a corpus for your child. It takes into account the various milestones in your child’s future for which a substantial amount of money might be needed.

As a parent, you want to shield your child from any difficulty and plan for a rainy day. Along with your responsibility, educating your child about basic money matters can help them a lot.

In fact, teaching your kid the basics of finance is the best thing you can do for their future. Introduce them to the power of compounding. Encourage them to start saving early in life, as it gives more time for the money to grow.

In the pursuit of professional excellence, higher education from a reputed foreign university can be highly beneficial. It can provide your child with great academic exposure and help build a competitive advantage. However, foreign education is expensive!

By the time your child knocks on the university doors, costs would have shot up several times. To provide for this future expense, you must start early and plan well. Here are some tips:

Mumbai based Ashok Dave (35) and his wife Sayali (33) are a working couple. They are savings for various life goals including higher education for their 3 year old daughter.

Let us see how a child plan can works for them.

The aim of saving now is to improve your lifestyle in the future, including multiple financial goals. The complexity of imagining and investing in multiple goals forces many investors to only give up on planning and only invest in safe instruments where they can be sure of growth. However, this growth may be too little help towards your long-term goals, like kid's education.

Fortunately, Axis Max Life's Child Insurance plan offers all these features. The only concern is how you can efficiently use the plan to achieve your child's goal. Here is a simple step by step process you can follow to prepare your money to meet your child's ambitions: