Why Should You Put Money Into A Child Education Plan
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Investment into Child education Plans not only takes care of the finances that he/she might need in order to achieve their dreams but also secures the majority of their dreams even if you are i.e., the parent isn’t available for transcending their dreams due to any misfortune ranging from accidental paralysis to death.
This article will list some of the reasons on why should investment be made into a child’s education plans:
1. Exponential Rise In The Cost of Education
Today the amount of money needed for the education is quite high ,right from kindergarten grade till class 12th along with the fees paid in coachings and tuitions, leisure and the cash flow is tremendous too owing to the co-curricular activities and they need a lot of investment. The tuition fees and the annual fees too are big enough to raise the amount to a level that can be unbearable at times so in order to cater to the future inflated prices, investment must be started at the earliest.
2. Small Investments Can Decrease The Risk Of Future Uncertainties
Child education plans allow you to invest small amounts at regular intervals of time today which is then compounded into a handsome amount which on maturity converts into a considerate amount that will be sufficient enough to reduce the financial load on the family during the process of higher education that the child wishes to pursue.
3. Education Loans Can Be Avoided
The savings of today can be made of use to insure the future of your child and he/she will not have to take up education loans and use your (parent’s money) todays saving which on being compounded annually can take care of their future education needs of the child relieving the stress of loan from them.
4. Investment And Protection
A lot of child education plans such as ULIPs offer both life insurance and investments and insure the safety of your child’s education even in adverse situations such as untimely death and these plans can also strengthen the coverage using riders which protects the future of the concerned child even though you haven't made all the necessary premium payments.
5. Tax Benefit
Child education plans also help in tax deductions on all the investments claimed and made under section 80C of the Income Tax Act 1961.
Conclusion
It is the need of the hour that investments are made towards the education of the child which assures their future and also makes you tension free of the future needs of the child even if you are not there to support the child.
Also Read: A Child Life Insurance Policy Can Assist You In Safeguarding Your Child's Future
