Parenting brings along its own shares of joys and responsibilities. Successful parenting is not an easy task, but a challenging accomplishment. Parenting involves nurturing your child into a responsible person with a bright future.
The best gift that you can ever give your child is a bright future, and in this day and age, a great deal of your child's security lies in financial planning from an early age. When the time is right, you understand the need to be judicious and do your financial planning in order to figure out your child's needs with respect to higher education, college fees, accommodation, among others. Timely investments are crucial. To help you with these investments, insurance companies such as MaxLife offer lucrative child education plans.
As the cost of education goes on rising each day, it is necessary to invest in savings plans that offer sufficient funds to meet the expenses at key educational milestones in his life. The returns should be sufficient enough to take care of your child's future needs even when you are not around. A child education plan offers comprehensive benefits of life cover along with maturity benefit.
There are several benefits of availing child education plan to secure your child's future, some of the important ones are listed below:
Maturity Benefit to meet College Expenses
Most of the parents wish their child to take up professional courses to be an engineer, architect, lawyer, or doctor. However, the fees for these courses are becoming increasingly unaffordable, such that you may have to avail a loan to meet your child's education needs. If you have wisely started investing in a child plan at an early age, then the investment corpus gathered at the time of maturity will be adequate to meet the inflated fees of colleges.
Facility to avoid Capital Erosion
As markets fluctuate, the returns over investments vary. To make the best of the invested amount and save it from capital erosion, dynamic fund allocation strategy needs to be adopted. Child plans offer privileges of fund selection and Systematic Transfer Plan or STP to plan your investments as per expected returns required during different life stages. Through STP, you can automatically switch the purchased units of funds to make the best of market volatility.
Options to Choose Riders
Certain plans will waive off the entire premium to be paid during the policy tenure if the insured person passes away. Similarly, riders such as personal accident insurance rider are useful if the person purchasing the plan is not around anymore, or is severely injured.
Partial Withdrawals to Enhance your Child's Talent
If your child possesses a special talent, such as acting or instrument playing, you can nurture it further by making partial withdrawals from the child education plan. Moreover, certain plans come with periodic pay-outs that will be useful to meet the expenses incurred while enhancing your child's talent further.
Support for your child's school fees
If the parent purchasing the child plan is not around anymore, then the insurance company pays around 10% of the sum assured immediately, and periodic annual pay-outs amounting to 10% of the sum assured are paid each year until the end of the policy tenure. These pay-outs are sufficient to pay your child's school fees in your absence.
These are few key benefits of investing in child education plan over other investments. So why not buy this plan and secure your child's future today?