How to Fund Your Child's Higher Education with a Child Insurance Policy?

Education is the most crucial part of development for a child and any parent would only want the best for their children. As a parent your top priority is to provide the best education to your child. A parent is always worried about their child’s education and future, if the child gets proper and quality education he/she will be able to pursue their goals in the future. 

Providing good quality education is a big task and quite expensive. In India higher education is quite expensive and parents find it difficult to meet the education expenses be it schooling or higher education. 
This is very child life insurance plans become handy. These plans are specifically designed to provide financial security to your child so that your child is able to have quality education and is able to fulfill his/her goals.

What are Child Life Insurance Plans?

A child life plan provides dual benefits which are life coverage and savings that help you ensure a financially secured future for your child. Child life plans offer maturity benefits which are payable as a lump-sum at the time of plan maturity. Under this plan you can avail Waiver of Premium Benefit under which all future premiums get waived off in case of your unforeseen demise during the policy term. Child life insurance is a great way to invest your money for your child’s better future and better education.

How Can Child Life Insurance Plans Help In Funding Your Child’s Higher Education?

Child life plans are widely appreciated because of their features. Here are some reasons that can explain how child life insurance plans can be helpful in funding your child’s higher education:

• Partial Withdrawal:  Under child life insurance plans you are eligible to make partial withdrawals under certain terms and conditions. Partial withdrawal can be made to sponsor your child’s extra curricular activities. With child life insurance plans not only help you fund your child’s education but they also help you to nurture your child’s talents. 
• Maturity Benefit: Child life plans offer maturity benefit at the end of the policy term in case the life assured has survived the entire policy term. The maturity benefit can act as a resource when your child needs to pursue his/her choice of higher education that will allow them to achieve their goals. 
• Waiver Of Premium Benefit: Under child life plans you can avail the Waiver of Premium benefit. Under this benefit all future premiums are paid by the insurance company on your behalf in case of your unforeseen demise during the policy term. This way the policy is not terminated and the benefits can be availed by your child when he/she requires it the most,
• Tax Exemptions: Premiums paid towards child life insurance plan qualify for tax exemptions under Section 80C and 10(10D). Under child life plans you avail tax benefits. Maturity benefit amount receivable is also eligible for tax exemption under Section 80C and 10(10D) of The Income Tax Act, 1961.

Conclusion

Child life insurance plans are a good option to invest your money into if you are worried about expensive education in India. This type of plan offers maturity benefit, waiver of premium benefit, partial withdrawal and wealth appreciation. Child life insurance plans also offer tax benefits. This plan will help you ensure a better future for your little one. 

Must Read:  Ways To Save For Your Child’s Education

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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.