A Child Education Insurance plan supports your child’s future education and provides protection for the savings needs of your children. As a parent, one of the main objectives for you would be to ensure that your children have a bright and fruitful future to lead their lives comfortably. A child education insurance plan is designed to secure the future of your child in case of your sudden demise and at that time, a support with some ready funds to finance prime moments in their life.
A child education plan offers multiple benefits such as a life cover, building a corpus for further education or future needs and the facility of adding specific riders. There are a few Unit Linked Insurance Plans available that provide an opportunity to create wealth as well. The question is, do you really need a Child Education Insurance Plan? The answer is yes, you do!
With the current financial market scenario, the ever increasing costs of education are a bit worrisome. Considering the current inflation rate, the education cost is only going to rise in the near future.
Where should you invest for your Children’s education?
Aviva Young Scholar Advantage Plan
This is a Unit Linked education plan, non-participatory in nature that helps to create wealth for future through market investments. This plan offers a comprehensive life cover advantage to the insurer. This policy is highly liquid and provides with an option of 7 different funds for allocating the assets for investment purpose. Under this plan, the insurer gets the benefit with both maturity and death benefit.
Met Life College Plan
Met Life education plan is a type of non-linked deferred participating endowment plan. The insured gets the benefit of guaranteed additional bonuses along with maturity and death benefit. In case of sudden demise of the life insured, the sum assured is instantly provided as the death benefit. The plan offers a flexibility of f4rom 12 to 24 years of saving option.
SBI Life Smart Champ Scholar Insurance Plan
This plan is specially designed to fulfill education desires of the child with a bright future, typically non-participatory in nature. SBI’s Insurance plan provides an assured benefit and built wealth which is offered as an accumulated bonus at the end of every policy year. SBI Life Plan offers dual benefits of insurance and investment that cover the premium waiver benefit, accidental total and death benefit, or any permanent disability caused. In any of these scenarios, the sum assured is paid out as the death benefit.
Aegon Life EduCare Advantage
This education plan is a traditional money back policy with a limited premium payment mode. With an advantage of death and maturity benefit, the plan also provides a terminal bonus (if any) and simple revisionary bonus. A few features of this policy include a guaranteed payout being offered during the last 4 policy years, and the insured gets a rebate on the large sum assured. Like the other child plans listed above, this plan also allows you to enjoy tax benefits.
There are a lot of alternatives to Child Plans basis your budget and needs; hence, it is always advisable to compare the quotes offered by different insurers. With a wise financial planning strategy through a child plan, you can successfully mark all the milestones where your child gets to benefit out of the financial support to meet different needs at different stages of life.
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