5 Benefits of a Child Education Plan
Updated On Oct 28, 2021
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The kind of life that children will have in the future is determined by their education. That is why the majority of parents place a high value on education. Quality education, like everything else in the world, comes at a cost. Inflation affects this price, so even the most heavily subsidized institutions may charge a large cost by the time your child reaches adulthood.
As a result, you must start investing and building a corpus for their higher education right away. Child education plans are investment choices that are tailored specifically for your child's future financial requirements. These plans will make it easy for you to invest, grow, and provide for your child's goals.
5 Benefits of a Child Education Plan
Apart from love, there is no better present than a Child Education Plan to give your child. Here are some of the advantages of purchasing a Child education plan to help you understand:
Fulfilling the Dreams of Your Child
If you start saving for your child's education now, the costs will be substantially greater when the time comes for your youngster to enroll. You won't have to worry about your child's course of study if you have a child education plan in place. He can choose from a variety of courses based on his interests and abilities. With the money guaranteed supplied by the child education insurance, he would be able to pursue his aspirations and professional objectives.
Maturity Benefit to Help Pay for College
As you can see, the expense of schooling is increasing at a rate of 10%, which is significantly greater than the rate of inflation in the economy. The cost of a B.tech education has increased from Rs. 90,000 to Rs. 2 lakhs. As a result, investing in a child-saving plan that provides sufficient finances to assist your child in meeting all of his educational milestones is no less than a need.
Take Advantage of Income Tax Benefits
A tax deduction for the premium paid on a child education plan is available under Section 80 C, up to a ceiling of Rs. 1.5 lakh per year. Section 10 of the Internal Revenue Code provides tax advantages on the maturity amount (10D). Apart from being a superb investment strategy, these are the main advantages that a Child's education plan may provide.
Offers for Partial Withdrawals
You can withdraw money throughout the policy's term to support a unique course your Child wishes to attend, such as studying an instrument or acting, for example. Certain programs provide monthly payouts to assist you in covering the costs of increasing your child's skills.
Options for Selecting Add-ons/Riders
Even if you've purchased the finest savings plan for your child, you should supplement it with rider benefits. You may pick a Child plan that includes a premium waiver if something bad occurs to the policyholder during the policy term, as well as additional rider advantages including personal accident insurance rider benefit cover-up for severe accidental injuries and accidental deaths.
It is critical to plan ahead of time for funds for your child's education. It is important to plan ahead of time for your child's education. A Child education plan can assist you in being financially prepared for any obstacles that may arise in your child's career. You may begin by paying a little fee today to ensure that you are future-ready.
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.