Child Education Policy

Higher education is expensive, whether one plans to send the child to a private college or university in India or abroad.A child plan is a great education policy and the best investment plan for the child. The child education plan also instils discipline and helps form the habit of saving to secure the child's future.

What is Child Education Policy?

The child education policy is a life insurance product specially designed as a savings tool to provide an amount of money when your child reaches the age for entry into college (18 years and above). The funds can be used to pay for your child's higher education expenses. Under this policy, the child is the life assured, while the parent/legal guardian is the policy owner.

Why child education policy Is Important?
Maintain Living Standards

Your Child's Education

You need to provide quality education for your child. Education being expensive, children education planning is a must.

Low on Price

Your Child's Marriage

Marriage today costs lakhs of rupees. Children Education Planning, helps you to save for this expense.

Rider Benefits

Rider Benefits

You must avail waiver of premium rider to ensure your child gets a good education, even if you are not around.

Tax Benefits

Tax Benefits

You get tax deductions on the premium you pay for the child plan. The amount you get on maturity of the plan is tax free.

When Policy should you Purchase?

The policy you purchase depends on your objectives and your risk tolerance. Before you buy a policy, ensure that your agent carries out a fact-finding evaluation process so that the policy recommended is based on your needs and financial capacity.

It would be useful to choose a policy that will allow you access to the funds when needed, i.e. the policy matures when your child starts higher education, or the policy allows you to receive part of the insurance benefits prior to maturity, if necessary.

Ensure that you opt for the pay or benefit rider

Look for a policy that waives premium payment in the event the parent/legal guardian can no longer pay for the policy, arising from events such as untimely death, diagnosis of a critical illness or total and permanent disability. By opting for the payor benefit rider, your child's education fund will be taken care of should anything happen to you as the parent/legal guardian.

Monitor the Funds

After you buy a policy, you need to monitor it to ensure that you are on your way to reaching your goals. Actual returns declared by the insurance company may differ from initial illustrations (particularly for participating policy and investment-linked policy) due to changes in financial markets. You may also find that the actual cost of higher education may differ as the course chosen by your child is different from the one initially planned, or currency exchange rates may rise and fall if an overseas education is preferred. If there is a shortfall in the funds required, some policies do provide an additional benefit of a study loan.

Why child education policy Is Important?

Your Child's Education

You need to provide quality education for your child. Education being expensive, children education planning is a must.

Your Child's Marriage

Marriage today costs lakhs of rupees. Children Education Planning, helps you to save for this expense.

Rider Benefits

You must avail waiver of premium rider to ensure your child gets a good education, even if you are not around.

Tax Benefits

You get tax deductions on the premium you pay for the child plan. The amount you get on maturity of the plan is tax free.

Factors Influencing Child Education Plan:

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Consider how much money you want to set aside for your child’s education.

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Make sure that the premium is affordable.

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Choose a policy that gives you flexibility so you can gradually increase the savings in the future.

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Ensure that you opt for the pay or benefit rider.

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