*What returns can I expect from child plans and is it better to invest in ULIPs for children’s higher education?
—B S Rao
While there are both guaranteed and ULIP child plans available in the market, ULIPs carry the upside of offering higher returns in favourable market conditions and the downside risk also lies with the insured when the markets run out of favour. Under the guaranteed plans, the payouts are fixed at defined milestones; hence the insured is protected of any downside market movements. Also, these plans usually come with a waiver of premium benefit which ensures that in case of an unforeseen eventuality, the plan continues and the financial goals for your children are fulfilled.
