Buy The Best Education Plans & Child Insurance Plans

What is a child education insurance plan?

Children's education insurance plan is an insurance plan that pays attention to your protection and savings needs to secure your children's future. As a parent, one of your most important goals is to ensure that your children have a bright future and live life comfortably. This plan can help you achieve this by saving money for your children's higher education at a prestigious university.

In our children's education insurance plan, you pay a premium for a certain period of time (monthly, half-yearly, yearly, or one-time pay). Once the policy term expires, you receive a certain amount of cash that is referred to as the Maturity Benefit. In case of unfavorable events during the life of the policy, the company will offer your nominee the amount of life protection. The company will also write off future premium payments* for the remainder of the policy term, to ensure your children's future is always secure. This benefit is available, provided that all premiums due are paid.

Why Do You Need A Child Education Plan?

A child education plan is an insurance policy that offers protection as well as the opportunity to save money to ensure a secure future for your child.

This ensures that your child receives the desired education with a lump sum payment when it is due or when an unfavorable event happens to you.

This acts as a safety net to ensure your child's education is not interrupted even in your absence. In case of unfavorable events, your child will receive life protection.

Features Of The Children's Plan

In general, Child Education Insurance Plans offer the following features-

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Lump sum benefits: this plan provides a lump sum benefit to your child in case of your death during the policy term

Premium exemption: your child will not be burdened with premium payments because the company is paying them on your behalf. Thus, the policy remains

Partial withdrawal+: you can access your funds during the term in the form of partial withdrawal, subject to certain conditions. It takes care of the various educational milestones of your child

Tax benefits: this kind of policy offers tax benefits to policyholders under Section 80C of the Income Tax Act^

Loyalty enhancements** and wealth boosters**: these plans can also offer benefits such as loyalty enhancements and wealth boosters, to help you grow your money without the need to invest more.

How much should you invest in a child's plan?

Education is the key to a bright future. Regardless of the direction or career your child chooses, making sure that they go to good schools and colleges is your main responsibility as a parent. Given the fact that India is a developing country, today's children have a huge role to play in the growth of tomorrow's nation. All this can be achieved with proper education. Education not only opens up opportunities for a financially secure life but can also help children develop an open mind and lead a more mentally and physically balanced life.

However, the cost of education can be a heavy burden in some cases. According to a study conducted in 2019, the cost of education from primary to post-graduation is ? 8,331 per year for each student. This is just a general estimate covering all types of schools and colleges across the country. The cost of private schools and colleges is much higher than that of public or government schools and colleges. Professional programs such as engineering, medicine, and others can be even more expensive. If you combine these costs with inflation, the figure will eventually increase significantly. It is difficult to cover these costs with limited sources of income.

That is why, with a life insurance policy, you can ensure your child's future and dreams are financially secured, even if you are not around.

Types of children's plans

Children's Unit Linked Life Insurance Plan (ULIPS) 

A Unit Linked Life Insurance Plan is an insurance policy that doubles as an investment. Some of your money is used to protect your child just like a standard child education plan. The rest is invested in a mix of equity and debt.

Child Savings Plan

A child savings plan allows the policyholder to invest in the plan without market risk. It is an all-purpose plan that provides life coverage, maturity benefits, and tax benefits, all in one single policy.

How Does The Child Plan Work?

Let's consider the example of Mr. Kapoor, who has taken SmartKid with ICICI Pru Smart Life, a 10-year insurance policy for his son. Now he has to pay monthly, half yearly, yearly, or one-time premium, depending on his preference towards premium mode. In case of death of Mr. Kapoor on the 7th year of the policy, his nominee will still receive the entire amount of life protection. If Mr. Kapoor survives the term of the policy, he can choose to use the amount gradually for important milestones

the educational journey of her child, or she can choose to get a lump sum payment at the end of the term.

Tips to consider when buying a child plan:

Here are some tips you can consider when buying a plan for your child:

Start Early

Starting early gives you the advantage of growing your money in the long run. The interest earned over time is reinvested to generate more profits. This is the advantage of the power of doubling. This gives you a larger amount that can be used to fulfill your child's dreams.

Take Advantage Of The Free Premium

Under this benefit, in case of unfavorable events with the policyholder, all future premiums for the policy will be paid by the insurance company. This ensures that the policy remains in force and that the child's dreams remain fulfilled, no matter what.

Search For Partial Withdrawal Features+

Some plans offer the flexibility to withdraw up to a certain amount from the plan during the term of the policy. This feature helps you stay financially prepared for your child's various educational milestones, such as college entrance, marriage, and more. It also helps you stay prepared for financial emergencies.

Choose an investment fund according to your needs

Some child plans give you the option to choose from a variety of funds$ - equity, debt, or a mixture of both according to your level of risk. Equity funds are high-risk funds that offer a higher rate of return. Debt funds, on the other hand, offer stable returns. It is important that the child plan you choose gives you options that suit your needs.

By considering a suitable child education plan, you can ensure a bright and secure future for your child, as well as help them achieve their educational dreams without worrying about financial problems. It is an investment in the future of our children and the growth of our nation

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