6 Reasons Why You Need A Child Education Plan in this day and age

Akash once took a student loan to graduate from a technical college and Business School. He had spent many sleepless nights working hard for almost 15 years to pay off the debt. When his daughter, Alisha, was born, Akash was determined that he would not have to fight like her. He was determined to make sure that he had enough financial resources to learn whatever he wanted to learn. Akash decides to start setting aside money for her, a little each month, until she is old enough to need it. However, saving money is not an easy process until she attends an older colleague's daughter's college graduation party and learns about the child's education plan.

A child's education plan allows for systematic savings by parents to ensure their child's future plans are met. This helps guarantee a safe path for the child to achieve their dreams, even if the parents are not around, for unforeseen reasons.

Some insurance companies offer child education plans, which can remove major worries from parents ' minds as important savings have been taken care of. No parent wants to resist helping their child fulfill their dreams by taking advantage of the best opportunities that quality education has to offer, and investing in a child's education plan early on ensures that they won't have to.

Read on to understand why it's important to invest in a child's education plan and prepare for the cost of a child's education right from the start.

1. The cost of education is increasing:

Quality private education is more expensive than ever, and the cost of Education continues to rise due to various factors including inflation. Parents who want to guarantee a good education for their children have to spend much more than before, and often cause a huge financial burden on family resources. Investing in a child's education plan early on can ensure that such concerns do not arise when the child really needs money.

Investing in a child's education plan also ensures that the child's dreams will be fulfilled, even if the parents are no longer around. For example, a Guaranteed Education Plan has a provision to remove all future premiums that must be paid after the death of a parent. The child also receives 5% of the sum insured immediately and annually on the anniversary of the death of the parent until he is 17 years old. This ensures that their education is not interrupted by tragic circumstances.

2. Set aside a little and get great rewards:

The premium to be paid on a child's education plan can be as low as Rs. 20,000 per year or even Rs. 2,000 a month; but when the child is 17 years old and needs substantial funds to finish school, he will have access to Rs. 2,00,000. It can be given all at once, or it can be received as a consistent payment that helps the child reach important milestones. A child's education plan is an investment that generates immeasurable rewards.

3. Saving children from debt in the form of educational loans:

Educational loans from banks usually attract very high interest rates, which ensure that a child remains in debt for a very long time. This greatly dampens morale and becomes a major obstacle for a young professional who starts their career with a large financial debt that they must pay off as soon as possible. Having student loans means that a professional should always look for high-paying jobs, without considering experimentation. In addition, it undermines their ability to start saving or investing early in their career.

4. Protecting the child's future:

With a child's education plan, it is possible to imagine a bright future for a child even if his parents are absent. Having a child's education plan will ensure that she never has to worry about her studies being hampered, and she can pursue her dreams without worrying about the financial implications.

5. Tax Benefits:

Premiums paid on a child's education plan typically qualify for tax benefits under the applicable provisions of Sections 80C, 80CCC(1), 80D, 10, and 10d. Although this is subject to change, some tax benefits can be applied in the form of exemptions, on the payment of premiums.

6. Easy access to funds whenever children need them:

The child's education plan will give the child the strength to think and dream big. Most plans have payment options when the child needs them. This allows the child to carefully analyze their choices and then pursue their dreams.

A child's education plan protects a child's future and gives them the freedom to plan their future, without lack of financial resources being an obstacle. With a Guaranteed Education Plan, it is possible to choose the payment period, flexibly, depending on the important milestones of the child.

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