5 Things to Consider Before Buying a Child Education Plan
We, as parents, want the best for our children. We work hard and earn to provide a seamless life to our children and ensure that they are able to achieve all their short-term and long-term goals without having to face any inconvenience. However, the rising cost of living and inflation rates often scare today’s parents. We often wonder how will we be able to manage our daily expenses while saving an adequate amount for future financial requirements. That’s where a child’s education plan comes to the rescue.
A child education plan offers the dual benefit of both investment and insurance. In other words, by investing in this plan, you can financially secure your child’s future and invest in market-related schemes for wealth creation. Today, we have numerous child education plans available for us to choose from. That is why we should go for a child education plan best suited for our children’s financial requirements. To help you choose the best child plan for education, we have prepared a conclusive guide on 5 things to consider before buying a child education plan.
- Meets Your Child’s Financial Requirements
Every child has different goals and dreams. Some children might want to go abroad for higher education, while some children might want to start their own business. Thus, they have different financial requirements. Investing in a child education plan ensures that the financial requirements of children are met; thus, they are able to aim for getting their education from the best schools and universities without having to worry about financial constraints.
- Choose a Plan That Offers Waiver of Premium Benefit
Choose a child education plan that offers the waiver of premium add-on benefit. This ensures that if the parent/policyholder meets an untimely and unfortunate demise, the burden of paying the premiums does not fall on the child or the spouse. In such cases, the premiums will be waived off without any policy discontinuation.
- Child Education Plans That Come with Risks
If you are willing to take the market-related risk, you can opt for child education plans such as Unit Linked Insurance Plans (ULIP). This provides both investment and insurance benefits. So, not only can you financially secure your child’s future, but you can also opt for wealth generation by investing your money in market-related options, such as stocks, shares, etc.
- Additional Rider Benefits
Opt for a child education plan that offers additional rider benefits. This provides additional benefits and a larger cover to the child. You can choose from multiple rider benefits, such as accidental disability rider benefit, accidental death rider benefit, critical illness rider benefit, etc. Please note that riders are not mandatory and are available at additional cost.
- Facility to Choose Partial Withdrawals
There might be situations where you may require money in an emergency before the maturity of the policy. Choose a child education plan that has the facility to withdraw a certain amount before your policy matures partially. This ensures that your child’s short-term goals are met without any financial constraints.
To choose the best child education plan, you must keep the points mentioned above in mind. Moreover, it is also recommended to compare the plans available online. This will help you ensure that your child’s short-term and long-term financial requirements are met. To start with, go for an insurance providing company that is trusted and has a good claim settlement ratio.