Children Education

As parents, we always want our children to have the best of everything, especially education, and the steep rise in the cost of education is a source of concern. This has led many parents to seek out various investment options to fund their children’s education.

How to Choose the Best Child Education Plan?

Choosing the best education plan is a very crucial financial decision, as it impacts your children’s future. Here are some factors you should consider while choosing the suitable plan for your child:

Type of Insurance

First of all, you should decide which type of insurance you require, either a children’s education plan, an insurance plan, or a combination of both. Children’s insurance plans provide financial security to your child in case of death, while education plans only aim to fund your children’s education expenses in the future.

Coverage Amount

You should calculate the coverage amount you require based on the type of course your child wants to pursue in future. Here, you can consider tuition fees, inflation, living expenses, etc, to calculate the required coverage amount and choose the plan accordingly.

Premium Amount

One of the important factors you should consider is the affordability of the premium. You should choose the plan which premium suits your budget and you do not stretch more.

Investment Period

You should also check when the plan will mature, and it should align with your investment objective. Simply put, you should check whether the plan benefits align with your child’s educational timeline.

Child Education Plans vs Child Insurance Plan

Child Education Plans and Child Insurance Plans are two different investment options designed specifically to secure your child’s future. The objective of both investments is to safeguard your child’s future, yet they differ in many aspects.

1) What is Child Education Planning?

Child Education planning is a process by which the parents forecast the expenses they will incur for their child’s higher education in future and start saving for that beforehand so that no financial burden occurs in the future. It is like a typical life insurance plan which provides opportunity for investment – to build a corpus for your child’s future.

2) What are the benefits of Child Education Planning?

A child education plan has many benefits such as it secures the child’s future, releases worries of parents, reduces financial burden at future, provides tax benefits and many more.

3) When should you start investing for Child Education Plan?

One should start investing as early as possible for the child’s future because it gives the parents a long-term horizon. The early savings give us benefit because the cost in future is going to only go up and one can save larger funds accordingly.

4) Where can you invest?

There are various investment options available like specific insurance plans for child’s education, schemes like Sukanya Samriddhi Yojna, stocks, mutual funds, recurring deposits, FD, etc. One can even diversify his options by investing partly in one option and partly in others.