For parents, one of the most earnest wishes in their hearts is to provide the best education for their children possible. In today’s fierce world, a good education means not only getting a degree but also being assured of a job in the years to come. However, in an age when higher education is more expensive than ever before, it has never been so important for parents to make financial plans for tomorrow while they still have time to do this. This is where Child Education Plans come into play.
Knowing More about Child Education Plans
Child education plans are financial products that aim at offering much-needed funds for the education of your little ones. They combine investment and insurance and make sure that the education of children is taken care of, even in your absence.
Why is it Necessary?
A Child Education Plan can benefit your child in many ways. Here are some of the most important benefits of these plans.
Rising Education Costs
Both in India or abroad, educational costs are going up rapidly. A medicine degree for example, or even an MBA, may lead to lakhs of rupees in expenses. This amount will only keep getting higher in the future as well. Thus, creating the right education plan for your child is all the more essential.
Peace of Mind
Life is unpredictable, but you will always want to secure the future of your child. A Child Education Plan provides an assured safety net. Whatever happens, so long as the policy remains in force, if there should be any unfortunate event, the policy will ensure that your child still receives the education you planned, with a lump-sum payment or regular payments for education expenditure.
Disciplined Savings
All types of expenditure have a way of eroding our personal savings. With the right child education plan, you can lock in your savings so that there is enough to meet the future needs of your little one without any hassles.
Tax Benefits
Many child insurance plans offer tax deductions under Section 80C of the Income Tax Act so that they are not only a safe financial tool but also bring tax benefits. It’s a win-win solution for both your child’s future and present financial planning.
Flexible Payouts
Child Education Plans often provide flexible payout options. You can receive the maturity benefits when your child reaches certain stages or at different times for education during his life specifically, starting college through payouts which are fixed by the terms of arrangement for a specified number of years.
A Gift for the Future
Worries about a child’s education are a big concern for any parent and that is what a Child Education Plan is for. They help you prepare in advance and provide your young one with the necessary education funds for them to live out their dreams. More than just an investment, an education plan is a promise for the future.
