How to Find An Ideal Insurance Plan for Child Education?

With a plethora of insurance products available in the market, one may find it difficult to find a plan which is ideal for a child education plan. When it comes to child education planning, it is a blend of investment and insurance where the premium amount is invested and the maturity benefit can be availed after the completion of the policy term. The payouts can be utilised for your child’s education or any other future liabilities. However, if a parent faces premature death, in such a case, the child insurance policy gives death benefit to the child considering the uncertainties. To bring ease to use this insurance plan, many insurers provide an option to make the payment for premium for a specified period like monthly, half-yearly, yearly, or single pay.

How To Select An Ideal Plan For Child Education?

Many child insurance policies are available in the market but many people get confused about selecting one. Every plan provides some of the other amazing features and benefits. Here are listed some  easy points to help you opt for a plan for your child’s education:

Calculate the Cost

It is crucial for every parent to compute the estimated costs and all types of planning required for the secured future of their child. On this note, before going forward to make an investment in the education policy, do make an estimate of the cost that may involve and decide an amount.

Right Time To Buy Plan

The right time to purchase a child education policy is as soon as possible. Many experts suggest buying a child plan when your child turns 1 as an early investment can secure your child’s future in a better manner. Also, many plans have started giving the maturity benefit when your kid turns 18 years. 

You May Also Like To Read: When To Start Investing In A Savings Plan For Your Child?

Understand the Market

A child insurance policy is a long-term investment, hence, you should always keep some parameters in mind while selecting a child insurance plan like inflation, increasing education costs, and so on, to understand the market. It will assist you to get the actual investment cost required for the future of your child.

Look for the Policy Features

Do check the benefits and features of child insurance policies before choosing one. You can look for various features such as riders or a partial withdrawal clause. The riders are available in different categories such as critical illness, premium waiver, and accidental death and disability, while the partial withdrawal clause allows the policyholder to make a partial withdrawal in any emergency situation. Add-on benefits like premium waiver benefits give huge security to the child by waiving the future premium payments in case of the parent’s demise and providing the death benefit to a child without paying any premium in future. Also, the child will also get the maturity benefit after the maturity date and his or her remaining due premiums are paid by the insurer. Checking and choosing such features and benefits helps the child the most.

Check Equity Linked Plans and Endowment Plans

If you wish to invest for a long period of time, equities provide good returns, however, they are risky at the same time. So, if you wish to take risks, an equity-linked plan is the best option for your child plan. But, if you want to go with the stability, opt for an endowment plan as it provides a lump sum amount after a specific period such as on maturity or the policyholder’s death.

Conclusion

With the above-mentioned points, we hope it will become easier for you to opt for the right child insurance policy which suits you and your child’s requirements. Go through the aforementioned points carefully and opt for a child plan wisely.

Also Read: 

Best Monthly Saving Schemes For Child's Education

5 Benefits of a Child Education Plan

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.