Child Plan Calculator

What is a Child Plan Calculator?

A child plan calculator is an online tool specifically designed to provide parents with an approximate idea of the fund they would require to fulfil the future life goals of their children. For every parent, the well-being of the child is the utmost priority. With the rising inflation rate and skyrocketing education costs, it is crucial to have substantial savings so that all the child's future financial requirements are taken care of. A child plan calculator helps an individual create a strong financial backup for their children by providing them with an estimation of how much money they will need in the future to fulfil their children's future goals.

Before computing the monthly investment needed to accumulate the desired amount, the child plan calculator considers important factors like inflation, annual income, etc. The inflation rate plays a most important factor while calculating the approximate future amount required to secure the child's financial future. Due to inflation, savings lose value over time; thus, it becomes imperative to consider the inflation rate while doing the calculation.

Why is it Important to Use Child Plan Calculator?

Long-term goals like a child's higher education or marriage require proper financial planning and a substantial amount. With the help of strong financial planning, an individual can accumulate enough funds to fulfil these long-term goals. With the help of a child insurance calculator, an individual can estimate the monthly investment they will require to make to fulfil their child's future goals. Here are some of the reasons why you should consider using a child plan calculator.

1. Helps to fulfil Specific Goals

   If your child wants to pursue any specific career or study abroad, you will need to plan and set aside specific funds to fulfil these goals. These specific goals will also require more money; thus, with the help of a child insurance calculator, you will be able to evaluate and analyze the amount of money needed to fulfil these goals.

2. Estimated Projection

   Estimating the amount required to fulfil the goal is not a herculean task. Depending on the child's interest, you can get an idea of the amount you will need to fund his/her higher education. Similarly, you can also estimate the amount you will need for your child's marriage. All these estimations can be done in zippy with the help of a child insurance calculator. The calculator will project you the approximate amount, considering various factors like rate of return, investment tenure, and inflation rate.

3. Helps to Plan Monthly Finance

   Before investing in a child insurance plan, it is important to understand the financial requirements and budgeting. With the help of a child plan calculator, you can get an idea of the monthly outgo of money and make strong financial planning for yourself and your family. A child insurance calculator helps you to plan your monthly finances properly.

4. Provide Protection Against Eventualities

   Having a child insurance plan is a must to ensure a financially secured future for your child. A child insurance policy comes with a waiver of premium option, wherein all the future premiums of the policy are waived off in case of unfortunate demise of the life assured during the policy tenure, and the benefits of the policy remain the same till the maturity of the policy. Apart from this, a child insurance policy also takes care of the children's future financial needs. Thus, with the help of a child insurance calculator, you can estimate the amount of coverage you will need to protect your child.

How to Use Child Plan Calculator?

One just needs to follow few simple steps to use the calculator. Let's take a look at it:

• Step 1- To use the calculator, the individual will need to go to the 'child plan calculator page' of the insurer's website and click on the start button.
• Step 2- Next page will open. The individual will need to enter the child's name, and the amount one wants to save to achieve the child's goal on the next page. The calculator will show the approximate amount to be invested regularly based on the amount required at the end of the policy tenure.
• Step 3- After clicking the next button, the page will ask for the tenure one wants to accumulate the fund. The investment tenure is an important aspect; as long as one stays invested, the more corpus they will accumulate in the long term.
• Step 4- The child plan calculator considers the expected rate of inflation before calculating the investment amount required to achieve the financial goals. In the next step, the calculator asks for the expected inflation rate. An individual can choose a value between 3%-8%.
• Step 5- The last step asks for the expected rate of return. Based on the type of plan, one can choose the expected rate of return. A child savings plan offers a comparatively lower return as compared to a child ULIP plan. An individual can choose between 6%-15%. The calculator will show the required monthly investment to accumulate the amount in a specific number of years by clicking the next button.

Benefits of Using Child Plan Calculator

It is imperative to do proper financial planning to accomplish long-term financial goals. The more clear picture of investment you will get, the easier it will be for you to make the right decision. The main objective of the child plan calculator is to make investment easier for parents. By having a proper idea of the exact amount that needs to be invested, a parent can plan their future finances and take care of the family's current needs efficiently. There are different types of child calculators designed to serve different purposes. Many people use child insurance calculators to save for their child's higher education. Others use them to create an emergency fund for their children.