June 23, 2020 by Research Team
Whatever path your child chooses, you would always wish his or her dreams come true.
To realise your child’s aspirations, right financial planning for his or her secured future is very important.
What is a child education plan?
Child education plans are regular life insurance policies specially designed to meet your child’s financial needs.
The plan provides amount on maturity for your child’s education expenses.
In case of policy owner’s untimely demise, the child will be paid the death benefit amount and all future premiums are waived off.
The policy does not lapse, the insurance company continues to invest future premium amount on policyholder’s behalf.
On maturity of the policy, the maturity amount is paid to the child.
Do I need a child plan?
Increasing education expenses are a worry of every parent.
Higher education costs would increase drastically by the time your child grows up.
Hence, you need to start planning for your child’s education as soon as possible. An early start would give time for your money to grow.
A child education plan will provide funds for your child’s higher education and secure your child’s future in any uncertainty.
What are the features of child plan?
Most child plans are good; however, these are designed for longer duration. So are more beneficial if your child is less than 5 years old.
Even if you have missed investing in such plans, there are plans offered by mutual fund companies for older kids.
The funds are invested in hybrid plans like debt and equity which are a mix of G-Sec, bond and equity shares with moderate risk and good returns.
However, these plans do not provide insurance coverage.
Though, you can buy a separate plan for insurance coverage. Do contact your financial adviser for further details.
Types of plans
Tips while choosing a policy:
