Should I go for child insurance (or) mutual funds?



I have a 1 month old daughter. I want to save regularly for my daughter's education. I was wondering if I should go for a child insurance plan by any of the insurance companies (or) should I invest in any of the children mutual funds? Is there any other better way to invest?

7 Replies to “Should I go for child insurance (or) mutual funds?”


  1. mutual funds are RISKY.

    you should call up an insurance company life American Life Insurance, or Allianz and inquire about their CHILDREN’S EDUCATIONAL PLAN, OR ANY EDUCATIONAL PLAN that cover higher studies, most insurance companies do give these plans with an inbuilt feature of life insurance.
    if you want to keep your money safe DO NOT opt for mutual funds.



  2. Child Insurance ?

    Always remember, dont insured your child, only do insurance of own name and nominee is your child.

    u divided your money in two part one part for insurance and IInd for Mutual fund, if u invest in mutual fund for long period u find very fare result.

    please purchase mutual fund of LIC ,if possible


  3. Don’t buy life insurance for a child. Life insurance is there to replace income from someone that is working. The money is used to bury them, pay off debts such as a house and to replace their income. A child has no income. You should have insurance and the child should be listed there. Don’t use you child like a lottery where you win if the child dies. They don’t tell you that but that is what you are doing. This also goes for medical insurance. The child should be listed on your insurance.

    As for saving: Make sure you are debt free except for the house if you own a house. Then make sure you have an emergency fund of 3-6 months saved. Then invest for your future by investing in your retirement. Then save for you child’s education. In 20 years you do not want to have tons of money for you child’s college but be broke yourself. Take care of yourself so that you can take care of your child.



  4. It completely depends where you live. Different countries tax things differently and some countries have programs set up specifically for children’s education where the government matches what you put in.

    I don’t know what you mean by a childs insurance plan, but the only type of insurance product that would be worth while to save for education would be universal Life policy where the investment portion would grow tax sheltered and then can be borrowed tax free out for the education. There are nay-sayers that say that U/L are a waste of money, but often times these people don’t fully understand how they work or use facts from a long time ago when U/L products were not as good as they are now, since it is a very complicated product. I know many people that have used them as an investment vehicle and have made great returns.

    To the person that said mutual funds are risky: You are seriously uninformed. There are various types of mutual funds out there and some are very safe and don’t lose money. Also, given that the daughter is 1 month old it will be roughly 18 years before the money is needed…that is a HUGE amount of time to let the markets rise from their current low points. A mutual fund would provide a lower amount of risk than investing in stocks right now becuase they are well diversified.

    You’re best bet is to contact a lisensed broker who deals with insurance and investments. They will be able to review your options and make a recommendation that will best help you acheive your goals.





Leave a Reply

Your email address will not be published. Required fields are marked *

19 + 6 =