Competition is on the rise these days. A bachelor’s degree is not valuable if the child does not have the skills to back it up with. A child education plan is what will protect your finances and will also protect the financial interests of your ward. Most parents want their children to have a secure future and it is a commonly shared fact that education can help in that. This is why a child education plan is what parents need to buy to secure the future of their children.
What are some of the steps that you can take as a parent to invest in a child education plan?
- A child education plan can help you secure your child’s future and help them study in a world-renowned university. With a child education plan, you are provided with the benefit of paying your premiums in a flexible manner i.e. once a month, yearly, twice a year or even quarterly.
- The child education plan comes with a maturity benefit. Once, the policy term is ended you will receive a lumpsum amount that is known as maturity benefit.
- In case of your unfortunate demise during the period of the policy, your nominee will receive a life cover amount. In certain cases, the future premiums of your policy can be waived off depending on the circumstances of the case and the terms and conditions of the policy.
- The child education plan can act as a safety net for your child during turbulent future times.
- The features of a child education plan are lumpsum benefit in case of the death of the parent, and waiver of the premiums after your demise and this keeps the policy active as well. Subject to the terms and conditions of the policy provider, you can also avail an option to have partial withdrawals at your disposal.
- The child education plan allows the policy application, in this case, the parent to avail tax benefits under section 80C of the Income Tax Act, 1961.
Starting a child education plan early on can be very beneficial. It can help save a lot of costs and you can provide your child with a higher sum assured as well. With a child education plan, you can also add riders to your policy that can help secure your child’s future in a better way. Preparing for your child’s future is one of the most important decisions you can choose to take early on. You can help your child towards a financially sound life with the help of a child education plan.
One of the key points that you need to keep in mind while purchasing a child education policy or any such policy for your children is to account for inflation. It is important to consider inflation over a period, if inflation is not considered while investing, it can erode your wealth silently. Thorough research must be conducted before investing funds in a child education policy as understanding the policy is extremely important.