Quality education in India is becoming increasingly expensive. According to a study undertaken by the National Sample Survey Office, annual private expenditure on education in India surged by 175 per cent between 2008 and 2014. Similarly, the annual cost of technical and other professional courses increased by 96%. This is why it is important to plan for the future and ensure your child gets the opportunities to accomplish their life goals.
Child education plans are one such financial tool that is explicitly designed for this purpose. The child policy combines insurance and financial benefits to protect your child’s future. If you want to learn more about child investment plans, keep reading.
5 Reasons to Have a Child Education Plan
A child education policy provides a safety net for exploring career options without incurring financial hardship. Let us try to comprehend the reasons for choosing a child life insurance plan.
Rising Education Cost
The rising cost of education is a well-known fact that is projected to continue in the future. The expense of schooling will rise when more technology breakthroughs are implemented. Furthermore, professional courses are becoming increasingly expensive. As a result, it is vital to be well prepared for the increasing expenditure of education and by selecting the best child education plan.
Income Uncertainties
Job loss as a result of an economic downturn or for any other reason is a typical occurrence. The only way to progress professionally is to regularly update your educational skills and remain relevant to the market. Learning new professional courses to secure stable work is now a requirement. All of this, however, necessitates continuous financial support. It is one reason to invest in the best child plans available and ensure financial security whenever required.
Life Uncertainties
As a parent, it is natural to be concerned about your child’s future in the event of your untimely death. While there isn’t much one can do about tragic events, you may financially secure children future by acquiring a child life insurance coverage.
Child education plans are intended to be long-term commitments, with the option of continued investment in the plan until maturity. In this case, of your premature death, the insurer is committed to continuing to invest in the child policy to reach the intended target value. This is an easy approach to provide financial support to children even when you are not there.
Safeguards Against Loans
An educational loan is the most prevalent means to finance expensive degrees. Because of the high interest rate imposed, this is a pricey proposition. Furthermore, given the level of uncertainty around job and income insecurity, it is not a smart idea to begin your career with a large debt to pay. The stress of repaying an outstanding loan can only make matters worse for your children. A child investment plan relieves stress and enables sensible budgeting for future expenses.
Encourages Initiative
What if your youngster wants to start his own business after finishing his studies? Do you have the resources to help him realize his dreams? Or are you planning to raise funds to support your child’s entrepreneurial endeavour? There is no easy answer to these questions. One simple and effective method is to build a corpus that will come in helpful when the time comes. By investing in a child insurance plan, you can help your child’s entrepreneurial ambitions. This will provide financial security as well as contribute to the prosperity of your family.
Given the criteria outlined above, it is financially smart to invest in a child insurance policy. It is not only a useful strategy to safeguard your child’s future, but it also provides tax benefits.
