Have you considered an educational plan for children? This is one of the best ways to secure the financial future of your kid and ensure that he/she can meet his/her goals even in your absence. You will find dedicated child plans available at most leading insurance companies these days.
Why an Educational Plan for Child is Important
An educational plan for child is vital for the following reasons:
- These plans combine the benefits of life coverage with savings plans.
- You can steadily build up a future corpus that will cover your child’s higher education costs at various stages of his/her journey.
- You can plan early to grow your money over a prolonged period and ensure that your child does not have to compromise on his/her dreams even in your absence.
- This plan helps you prepare to meet the rising costs of higher education, particularly across leading colleges, universities, and private schools. It will help you mitigate the financial burden at various stages in life while enabling your child to access the best learning and growth opportunities without any issues.
- The built-in sum assured or death benefit will financially protect your child in case of the policyholder’s unfortunate demise within the policy tenure.
- In this case, the insurer will hold the responsibility of making the premium payments till maturity.
Key Aspects of Educational Plans for Children
A child or educational plan for child will have a tenure that should be fixed carefully. You should choose it depending on the timeline when you want your kid to start benefiting from the same, i.e. upon enrolling in high school, college, or university. At the same time, there are often optional add-ons or benefits for expanding the scope of coverage. These may include permanent total disability coverage, which will offer a sum-assured payout in case the policyholder is disabled due to an accident or other mishap. This will help him/her meet necessary costs when he/she is unable to work.
Some other add-ons include an accidental death benefit, critical illness coverage, and the last expense policy, i.e. where the insurer disburses the sum assured within 48 hours of reporting the demise of the policyholder. You should also note that these policies are tax-deductible as far as the premium payments are concerned. You should choose a premium payment option and frequency that is suitable for your current scenario. Make sure that the payor rider is included in the policy. This ensures that the policy continues in case of the demise of the individual paying the premium.
Invest in the Right Educational Plan for Your Child’s Future
You should evaluate multiple educational plans for children carefully and compare the coverage, premium amounts, and other features before making a final decision. It is essential to purchase this policy as soon as you have a child since it will help you amass a substantial corpus and build up long-term savings till he/she comes of age.
