As a parent, what is the first thing that comes to your mind about the future of your child? Is it providing a world-class education that can make them the best in their career? If so, then it is essential to save from today for use in the future.
Purchasing an education plan with your insurance policy provides you with the perfect chance to save while protecting your kid. Investing in an insurance policy that secures your child’s future is a smart decision. Here, we discuss how investing in a child education plan can save your life.
Why Invest in a Child Education Plan?
The sooner you invest in a child education plan, the larger amount of money that will be available for their future educational expenses. Parents and their children are protected against any financial insecurity if something unexpected happens.
Some of the factors that can compel you to have your child’s education plan while holding an insurance policy are:
- Safeguard Child’s Education Expenses
The child education plans usually come with life insurance as well, therefore ensuring that at any point in time, your kid’s schooling expenses remain taken care of. You can be stress-free with the assurance that your child’s education is secure, giving you more time to focus on other aspects of life.
- Consistent Saving for Your Child
With these plans, you have a disciplined and structured approach to saving for your child’s education. Your consistent premium payments towards the plan help your savings grow over time.
Also, some plans offer market-linked or guaranteed returns for even higher growth. This systematic savings approach helps ensure that you are well-prepared to meet the increasing educational expenses without the burden of last-minute financial stress.
- Tax Benefit
By having a child insurance plan, you can avail yourself of tax deductions for the premiums you pay under section 80C of the Income Tax Act, the extent depending entirely on your taxes. This is going to affect its total investment value. Hence, taking a child education can do you double favour by saving annually and reducing taxable income also.
- Flexible Payouts
These plans often provide flexible payout options, depending on your requirements and budget. This option allows you to choose between lump-sum payouts or staggered payments to better align with your child’s educational milestones and needs.
- Protection Against the Growing Inflation
The rising educational expenses are a great concern for many parents. Under such conditions, a child’s education plan comes to the rescue. Some child education plans offer inflation-linked benefits, ensuring that the value of your investment keeps pace with rising education costs.
Tips to Get the Best Child Education Plan
The child education plan that you plan to choose must be structured enough to help you maximise your long-term goals. Here are some of the factors that can help you choose the best plan:
- Start Investing Early
Starting with early investment will help you save a large sum of money for your child’s education funds. With early investments, you also get the opportunity to make the necessary adjustments and achieve the larger goals.
- Consider Rising Educational Cost
The educational expenses keep on increasing with the effect of inflation. Thus, it’s crucial to plan your child’s education with the after-inflation effect to catch up with rising costs in the long run.
- Look for Premium Waiver Benefit
This benefit ensures your child’s investment plan stays active without extra premiums, so they receive full maturity value in case you face a critical illness or disability.
- Check the Partial Withdrawal Option
This feature allows you to withdraw money instantly from your fund so that you can meet immediate funds requirements. Therefore, before selecting the child education policy, look for the partial withdrawal option.
- Option to Include Riders
Opt for a policy with rider options to add extra benefits like critical illness or accidental death coverage. These riders enhance your policy, though they may increase your premium.
Secure Your Child’s Future as Early as Possible With Child Education Plan
Now is the right time to take a step forward for your child’s secure and safer future. Invest in the right policy that can help you meet your long-term financial goals. Various child insurance plans like Invest 4G or Smart Future Plan from Canara HSBC Life Insurance provide you with the much-needed financial assistance at the best premium and terms available. Their plans are designed to protect your child’s dreams by providing additional rider features.
With proper research of the available policies, you can invest in the best child insurance plan that can offer you peace of mind while ensuring your child’s success and well-being. So, wait no more and invest thoughtfully for a better educational journey for your child.
