Automate Your Children's Education Goals With These Investment Solutions
Updated On Jun 24, 2021
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Being a responsible parent, the first thing you should do is ensure a better future for your child. With the uncertainty of life increasing day by day with different types of calamities such as pandemic or on untimely death, disability, it is necessary that parents should plan strengthened corpus amounts for the children in case they are not alive by the time the child would actually need it. The corpus can be used by your child in any way they wish to but education is the primary reason why parents invest for their children. Afterall, there is no future without a quality education and no parent would want their child to be deprived of a good education.
Automate Your Children's Education Goals With These Plans
There are multiple plans available in the insurance market that assure you to take care of your child needs both in your absence and presence but one should always invest judiciously when it comes to their children. Here are some ways in which you can plan it-
1. Invest In Child Education Plans
Investing in a child plan is one of the wisest decisions you can take during your lifetime to ensure a good future for your child. Actually, investing into child plans should be obligatory. Child Plans have special coverage for your child’s education which includes schooling and higher studies, it provides you with plethora of features with a profitable maturity benefit with the actual cover up plan, this not only makes your child’s future secure but also provides them with enough funds to fund their studies in case you are not alive to take care of it. Nowadays people have started investing into toddler projects as well, you too can consider this according to your needs. Investing in a child plan will make sure your child has a smooth funding throughout their education and they don’t find themselves out of funds when required.
2. Invest In ULIP
When it comes to covering your child’s education, Unit Linked Insurance Plan or ULIP’s turn out to be the best as they provide you with both insurance and investment. A child plan based on a ULIP will make sure that your child completes his or her education smoothly even in your absence. If there is a mishap with you, the child is instantly provided with a lump sum amount or a regular amount according to the plan’s terms and conditions. With an ULIP your child also gets access to facilities such as premium redirection and partial withdrawal of premium.
3. Invest Into Mutual Funds
It is a well known truth by now that a good mutual fund plan can give you ten times more returns than your typical child plan, however it totally depends on the fiscal conditions but this should not deter you from investing into a mutual fund for your child. Even though children or minors can’t own the funds directly but with their parents as the real custodians of the policy, they can be the minor head and can take over the funds once they are 18 or 21 according to their plan and use the funds for their educational purposes
4. Choose Riders That Cover Education
In case you are wondering that it is high time you should invest into a plan for your child’s education but are hesitant as well due to the immediate increment in premiums, you will have to pay, you can resort to a Child Term Rider which provides death benefit if your child passes away before a certain age and if he continues to live, after his maturity, the rider is changed into a permanent plan and the cover up is increased upto five times the principal amount.
Education is the key to every closed door of success in this world. No child should be deprived of quality education whatsoever the circumstances be and by investing in your child's education you are not only ensuring a smooth education journey for them but also discharging your responsibilities as a parent in the best way.
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.