SSY or ULIP: Which is the better investment plan for your daughter?

Our daughters are definitely the apple of our eyes. Right from their small wishes to humongous aspirations, we particularly want to ensure they have it all without asking twice. In order to ensure your little princess has the entire world at the palm of her hands, invest in a Unit Linked Insurance Plan (ULIP). With the help of ULIPs, your girl will have her financial needs covered.

On the contrary, another such policy for safeguarding your daughter’s future is Sukanya Samruddhi Yojana (SSY). Investing in SSY will prove fruitful as it offers numerous benefits for a better life of your little one. For starters, it offers attractive interest rates followed by tax benefits and sovereign guarantee. However, if you’re still confused about whether to make an investment in SSY or ULIP, keep reading to find out more:

What is SSY?

Popularly known as Sukanya Samruddhi Yojana (SSY), this type of policy has garnered a lot of attention due to its remarkable features. Being specifically crafted for the needs of every daughter, SSY is a part of the ‘Beti Bachao, Beti Padhao’ campaign started by Shri. Narendra Modi.

Whether you’re planning for your daughter’s marriage, higher studies, and so forth, SSY can be an ideal choice for it. The aim of SSY is to ensure the financial independence of women, even in times of financial exigencies. At the initial stage of investment, the deposit may vary between Rs. 250 and Rs. 1,50,000 based on the financial goals of the policyholder.

What is ULIP Policy?

A Unit Linked Insurance Plan (ULIP) is the most commonly used option for not only insurance but also investment. Being a market-linked product, it easily generates higher returns along with tax saving benefits.

When you invest in ULIPs, be sure to not only protect your family with the huge sum of money but also create wealth on a larger scale. That way, you don’t have to constantly worry about your girl child, at the time of an unfortunate event like death. In your absence, the ULIP Policy ensures the provision of death benefits in order to financially secure her.

What is the difference between the two?

Tax benefits Tax-free Tax-free
Funds Multiple
Returns Average High
Premiums Low


Which one is useful for your daughter?

The debate between SSY and ULIPs can be never-ending. Both of these policies offer different sets of perks. But it is your responsibility to make the right choice for your daughter and opt for the best one. While SSY mainly focuses on the progress of your girl, it is practical to invest in a ULIP for long term benefits.

Take a look at why you should invest in a ULIP Policy for the bright future of your daughter:

  1. ULIPs offer life coverage.
  2. It is a combination of investment and insurance. Additionally, it provides the opportunity for protection as well as growth.
  3. It earns higher returns as well as levies lower costs.
  4. It provides tax saving benefits as stated by Section 80C of the Income Tax Act, 1961.
  5. ULIP have a lock-in period for the term of 5 years.

First things first. Your security of your daughter without your presence is the must for your daughter. In that case, investment in ULIPs comes in handy. It will not only rightfully safeguard the needs of your girl but also allow the generation of wealth. So now that you know which plan is better for the future of your daughter when are investing in ULIPs?

You May Also Like

Leave a Reply

Your email address will not be published.