BENEFIT OF CHILD INSURANCE PLAN FOR EDUCATION 2023
Child insurance plans act as a savings tool to secure your child’s future. Child plans help address your child’s future education. They also provide the capital that your child may need at a later stage to venture into a business. The earlier you start investing, the higher would be the fund value of your policy on maturity. Given that there are so many companies out there, you must compare various policy features online and offline, then arrive at a decision. Certain key parameters that you should watch out for while evaluating the best plan. There are several Benefit Of Child Insurance Plan to secure your child’s future, some of the important ones are listed below:-
- Maturity Benefit to meet College Expenses Most parents wish their child to take up professional courses to be an engineer, architect, lawyer, or doctor. However, the fees for these courses are becoming increasingly unaffordable, such that you may have to avail of a loan to meet your child’s education needs. If you have wisely started investing in a child plan at an early age, then the investment corpus gathered at the time of maturity will be adequate to meet the inflated fees of colleges.
- Facility to avoid Capital Erosions markets fluctuate, and the returns over investments vary. To make the best of the invested amount and save it from capital erosion, a dynamic fund allocation strategy needs to be adopted. Child plans offer privileges of fund selection and Systematic Transfer Plan or STP to plan your investments as per expected returns required during different life stages. Through STP, you can automatically switch the purchased units of funds to make the best of market volatility.
- Options to Choose Riders Certain plans will waive off the entire premium to be paid during the policy tenure if the insured person passes away. Similarly, riders such as personal accident insurance riders are useful if the person purchasing the plan is not around anymore, or is severely injured.
- Partial Withdrawals to Enhance your Child’s Talent If your child possesses a special talent, such as acting or instrument playing, you can nurture it further by making partial withdrawals from the child’s education plan. Moreover, certain plans come with periodic pay-outs that will be useful to meet the expenses incurred while enhancing your child’s talent further.
- Support for your child’s school fees If the parent purchasing the child plan is not around anymore, then the insurance company pays around 10% of the sum assured immediately, and periodic annual pay-outs amounting to 10% of the sum assured are paid each year until the end of the policy tenure. These pay-outs are sufficient to pay your child’s school fees in your absence.
Every parent wants their child’s future to be bright. For a bright future, they need to study at the best educational units. Further, for this purpose you require money. And, that is where the need for child insurance plans arises. So, I suggest one must plan from childhood or small age of their children itself with the help of these plans. There are various child insurance plans in the world which include their school education, higher education, and even your children’s marriage and also even if you are not there in the future but your insurance will help your child to raise himself. It is basic financial planning for your child’s future needs at the right age.