Investements for kids who are born out of India and PIO card holders

PrathyushaCh · Dec 16, 2011

Hello,

I need suggestions on different investment options available for kids who are born in US and are PIO card holders.

my kids are born in US and we all will be settling in India in couple of years. Can I buy insurance policies on their name? my kids will be 6years old when we move back to India and definetly will be there for 20years. In that case, can I invest on their name in India now? or will I be denied as they are US citizens and PIO card holders?
Any pointers on investment options(other than investing in US) for such kids is much appreciated

Thanks in advance
prathyusha.

Ooviya · Dec 16, 2011

Jeevan Chaaya in LIC is best for kids..No Doubt.. Its my opinion...

harinisripada · Dec 18, 2011

Please remember that the insurance is for your or spouse life and the children are the beneficiaries

Most of the insurance companies are allowing policies to be taken on the child's life :idontgetit:

Pratyusha, are you investing in your name currently ?? Continue the same and add your child's name as joint holder or nominee, anyway, they are too young to be named as first holder!!! Then you dont have to worry about their citizenship issues

PrathyushaCh · Dec 23, 2011

Ooviya,

So does that mean, I can take that insurance on name of my kid but I heard that It's ILLEGAL to take a child policy as a proposer when u are not in INDIA

If anyone agreees to give they are putting you into lot of future trouble - when you claim the policy they will check you passport for entry and if you are not htere then the claim will be put in civil court.

Does anyone know if it's true and if yes, can't I not invest on my kid(as primary holder) if she's on PIO?

PrathyushaCh · Dec 23, 2011

harini,

thank you for your reply. i wanted to know if I can take the insurance on my kid name because of their citizenship status

but as you said, I think we can take insurance on my name and add kid as my beneficiery. I haven't taken any insurance so far, so don't know much

harinisripada · Dec 23, 2011

Everyone's insurance requirements are different, they depend a lot on income, liabilities, investments, long term plans, short term goals etc. You need to really make some calculations. Do go through my thread http://www.indusladies.com/forums/money-matters/55638-finance-planning-simplified.html and see if you get ideas.. sit down with a paper and pen and write down all the info... and then you can plan further from that... you can get some ballpark figures and then you can break it down

If you have any queries, you can post back, there are lot of ILs here to help