As a parent, everyone wants to be the best and do the best for their child. While nurturing and caring for a child is the primary responsibility of a parent, education is a fundamental necessity of a child’s growth and development.
But, as you are aware, the cost of education, especially higher education, is continually on the rise. Moreover, inflation is not going anywhere, and we need to tackle it with smartness.
While life insurance policy plans help our loved ones after our death with the death benefits, you need something that will support the child in gaining the material education that is necessary for a successful life.
A child education plan is a comprehensive financial way to secure your child’s academic dreams and path. Therefore, here we will talk about the various features of a child education plan that help to secure your child’s higher education.
Factors of a Child Education Plan that can help your Child’s Higher Education
- Partial Withdrawal with a Lock-in Period
Child education plans have a lock-in period, like 5 years, to ensure that the funds remain untouched and accumulate over time. But they also offer partial withdrawal during specific stages of your child’s education.
This feature allows you to finance critical stepping stones of your child’s life, their academic journey. The admission fees, exam fees, assignment fees, study material, course classes fees, etc., are going up, and you will need all the help you can get, hence the child education plan.
- Death Benefit
One of the primary concerns of any parent is ensuring their child’s well-being, even in the unfortunate event of the parent’s death. Child education plans provide death benefits, which guarantees that in the event of the policyholder’s unfortunate death, the plan will continue, and the assured amount will be provisioned to ensure the child’s education fund remains intact.
- Maturity Benefit
When the policy matures, the child education plan pays out a lump sum amount to the child. This amount is expected to be used for education expenses like tuition fees, hostel fees, and other educational costs. This amount acts as the primary source of financial support for your child to pursue their academic goals.
- Universal Access
Child education plans often come with universal access to educational loans. This feature ensures that your child has the option to secure loans against the policy to fund higher education.
The loan can be repaid over an extended period, reducing the immediate financial burden and allowing your child to focus on their studies without worrying about financial constraints.
- Endowment Plan
When we say a child education plan, you should know it is an insurance and a way to increase your savings. These plans provide a disciplined approach to savings by requiring regular premium payments.
These premiums get converted into a significant corpus of accumulated money that can be used for your child’s higher education and its funding. The endowment aspect ensures a guaranteed lump sum payout at maturity, bolstering your child’s education fund.
In today’s day and age, giving your child the best possible resources and higher education is of utmost importance to the parents. For that, the parents make many efforts, and one of those is surely the child’s education plan.
It works as a hedge against inflation and saves you from the emergency of collecting funds for education. It is always better to be ready than to rush!