How Can Child Plans Help You In Funding Your Child's Higher Education?
Updated On Jun 13, 2021
Table of Contents
Higher education opportunities are growing in number as well as getting costlier. As the competition grows, you must ensure only the best higher education for your child. To sufficiently fund a child’s education, having a Child Plan is very helpful. The Plan helps provide for your child’s education without putting you in a financial crisis.
A Child Plan has many features and benefits that cater to funding a child’s education. Wise purchase and use of such a plan can ensure that your child gets the best higher education without any financial problems.
Features of Child Plans that Help You Fund Your Child’s Higher Education
The following are some general features of child plans that help in funding a child’s higher education. Knowing about the features and benefits can help you make the best use of them.
1. Partial Withdrawal Facility
A partial withdrawal facility, that is usually available with Child Plan, is hugely beneficial. It helps sustain the increasing costs that your child may encounter. Even if you need to withdraw a certain amount from your savings corpus, you do not have to liquidate the whole plan. This makes sure your plan can remain active and your wealth can grow while facilitating you. Not only can you let your wealth grow, but have access to it whenever needed.
2. Death Benefit
With a Death Benefit available, you can rest assured that your child can pursue their higher education even in your absence. The amount of the Death Benefit depends on the Sum Assured under the Child Plan. You must pay your premiums regularly so that even in case of your sudden death before the end of the policy term, your child can have financial sustenance. Some Child Plans also have staggered payouts when it comes to the Death Benefit.
3. Maturity Benefit
With a Maturity Benefit, your child plan can finance your child's higher education dreams even when the plan is no longer active. The Maturity Benefit is paid out at the end of the policy term, given that the Life Assured survives till then. It is quite a substantial amount that can help provide for your child's higher education. Therefore, do not think you have to start late with a child plan in order for it to stay active during your child's higher education years.
Endnotes
A Child Plan is one of the best gifts that you can give to your children. It helps them focus on their studies without having to worry about the expenses. It also helps you provide for them to the best of your abilities.
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