Life Insurance Corporation of India (LIC) has recently launched a new savings scheme, which financial experts have described as extremely beneficial and safe for the future of children. The specialty of this scheme is that it rivals traditional fixed deposits (FD) and recurring deposits (RD) and offers better returns in the long run.
Objective and benefits of the scheme
This scheme of LIC is specially designed for those parents who want to invest on time for their children’s education and future needs. The scheme offers secure and assured returns on deposits, and also comes with tax benefits.
Experts say that investors in this scheme get more benefits in the long term compared to FD and RD. Apart from this, the plan also includes insurance protection, that is, the life protection of the child is ensured.
How does the plan work?
Investors in the scheme can deposit regular monthly or annual installments as per their convenience. As time passes, dividends and bonuses on deposits keep adding up. The specialty of the scheme is that the full maturity amount becomes immediately available for the children’s higher education or major life needs.
Moreover, LIC has offered this plan with flexible options. Parents can decide the duration of their investment and the amount of installments. In such a situation, this scheme suits every budget and requirement.
Why better than FD and RD
Compared to FD and RD, this LIC scheme is proving to be better in many ways:
Higher Returns: Better returns in the long run compared to traditional bank FDs.
Insurance protection: The child’s financial security is ensured in case of any unexpected event.
Long-term stability: Not affected by market fluctuations.
Tax Benefits: Exemption on investment under Section 80C of the Income Tax Act.
Experts believe that this scheme is not just an investment, but also security and planning for the future of children.
Who can invest
Under this scheme, any parent or guardian can invest in the name of their children. Small investors can also avail the benefits of this scheme by depositing small amounts monthly.
LIC officials said that this scheme is suitable for families of every class and income level and is designed for children’s education, marriage or other major needs.
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