How to Decide Which Plan Suits My Child's Education?

A child insurance plan is a type of life insurance policy that offers you protection and other saving needs in order to secure the future of your child. Being a parent, one of the significant goals in your life is to ensure that your child has a bright future and live their life with comfort and security. These insurance plans can assist you in achieving this goal by saving for your child’s higher education at a renowned university.

How to Know Which Plan is Suitable for my Child’s Education?

You must keep the below mentioned points in mind at the time of deciding which child insurance plan to purchase for your child’s higher education:

• Begin Early Investment

  The earlier you start with your investment, the better it would be for your child’s future. Generally, the insurance plans start offering the maturity benefit as soon as your child crosses 18 years of age or reaches college. Early investment in an insurance plan is a smart move for the financial safety of your child.

• Do Calculation of the Cost (Approx)

  It is significant to do the calculation for probable cost and other planning needed for your child’s brighter future. Before you plan on investing in a child insurance plan, make sure to estimate the expense and then decide a specific amount.

• Right Time to Purchase the Plan

  The right time for an individual to purchase a child insurance plan is as soon as possible. One could also gift their child with an insurance plan on their first birthday. None other gift can be as precious as offering security and protection to your child when they turn 1 year old.

• Check Plan Features

  It is always suggested to go through the features and benefits of a child insurance plan that you are looking forward to buying. Go through the details of whether it includes a partial withdrawal clause or riders. There are several child insurance plans that provide riders in 3 categories: critical illness, premium waiver, accidental death and disability. Also partial withdrawal is a significant criteria while deciding a plan as it allows the policyholder to make partial withdrawal in times of need.

• Know the Market

  Buying a child education plan involves commitment for a long term. Therefore, always keep in mind certain parameters like increasing education cost, inflation, etc to understand the market condition prior to purchasing a child education plan. It would assist you in calculating the actual investment cost needed to secure your child’s future.

• Purchase Endowment Plan or ULIP Plan

  A child insurance plan is further categorized in two forms i.e. Endowment plans and ULIP plans. In case you have a low risk appetite then go for an endowment plan and in case you are having a high risk appetite then consider buying a ULIP plan.

At the End

At the time of choosing a right child education plan to secure the future of your child and the one that suits you and your child’s needs, ensure to keep the afore-mnetiioned tips in mind. Also, make sure to carefully read the policy benefits, features and coverages in order to make a wise decision.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.