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Here are 7 Reasons to Invest in a Child Plan for Education

Every child has big dreams that they want to achieve. They might want to be a doctor, an engineer, a musician, a painter, and so on. Parents, too, wish to see their child achieve their dreams and do well in life. Providing quality education is the first step towards your children achieving their dreams. 

Knowing that the cost of quality education is rising, it becomes difficult and financially draining for the parents to help their children achieve their goals. The early parents start planning their finances, the easier it becomes for them to manage it in the long run. Planning and investing your finances will help you save and maximise the returns on the investments done. 

Mishaps don't often knock before coming, so it is better to be prepared in advance rather than facing an uncertainty with no prior backup plan. Investing in a child plan for education prepares you for any future mishap and secures your child financially. Child plans secure your child's future and dreams even if there is any mishap, such as a parent's untimely death. The child plan for education lets you invest, have a life cover as well as save your money at the same time. 

Let us Look at a Few Reasons to Invest in a Child Plan for Education

Amount coverage in case of policyholder's death

Child plan for education allows your child to get a certain amount of money in case of the policyholder's death. This will remove the financial roadblocks that the child might face in higher education in the absence of their parent. 

Education cost is rising with time

The cost of education has seen tremendous growth in the past few years. There are various reasons for this, one of them being inflation and growing trend of private schooling. During Covid-19, the cost of education has also increased, with education being limited to just the online mode, and inflation. In such times, buying a child plan for education would help create a financial backup and save you from any monetary problems you may face in the future.

Education plan will save you from educational debts

No doubt, the cost of educating your child can be very high. This might lead you to fall into the vicious trap of debts. This can have a negative impact on the child's wishes and their dreams. Buying a child plan for education helps you pay off your child's educational expenses with ease and without worrying about repaying debts. In this way, educational plans allow you to save your hard-earned money.

Child plan for education helps you save your taxes

The premiums paid by the policyholder, i.e., parents, are eligible for tax benefits as per current provisions of Income Tax laws. However, tax laws are subject to change from time to time.

Huge amount of money at the time of plan's maturity

Upon reaching maturity, the child's education plan will provide a huge amount of money. The policyholder can set the time of maturity according to the financial needs of the child. 

Wrapping Up

A child plan for education is a comprehensive plan for your child's financial needs and requirements for various aspects such as education, marriage etc. and helps fulfil their aspirations. 

There are many leading life insurance companies that provides the ideal child plan for education. Some companies provide flexibility to choose the plan according to your requirements and offer built-in premium waiver benefits, ensuring that the child's financial needs will be taken care of in case of any mishap to the parent. 

Disclaimer:

*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

Suggested Plans

Bharti AXA Life Child Advantage

  • Choose between payout options that are based on your child's needs – Money back or Endowment.
  • Built-in premium waiver benefit
  • Flexibility to choose your Policy Term
  • Non-guaranteed annual simple reversionary bonus

Bharti AXA Life Flexi Term Pro

  • A Non-linked, Individual, Non-participating Pure Risk Premium Life Insurance Plan
  • Get life insurance cover and flexibility to customize your term insurance plan as per your needs!

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