A child education plan in India offers dual benefits of insurance and investment to help you secure your kid’s future. It makes sure that money is not a constraint when you plan significant milestones for your little ones, from their education to higher studies. What’s best, investmentin a child plan can help you financially support your children’s dreams even when you are no longer around them.
Why Should You Buy a Child Education Plan?
As the rate of inflation is on the rise, education costs continue to increase. Therefore, your savings may not be enough to financially secure your little one’s future. However, education fees and costly courses should not be a hurdle in your children’s way to stand out in the competitive world and meet their career goals.
A child education plan in India offers the flexibility of investment in your kid’s future in line with his educational requirements, future dreams and also your present financial status. The best child investment plan also offers life insurance that is tenfold your annual income.
What are the Benefits of a Good Child Education Policy?
- Long-TermInvestment
The best child education plan in India must offer exposure to market-linked assets and secure returns. Then you can invest long-term and earn more by investing in equity funds. As you approach your goals, the child plan can offer the required security by providing him with a fixed income.
- Goal Protection
A child investment plan provides life coverage in case of an unfortunate demise of the child’s insured parent. However, the lump-sum payout may not be sufficient. Therefore, the plan offers insurance payouts in line with the important milestones of your kid’s educational journey. These can include college admission and moving abroad for higher degrees.
- Various Risk Management Options
A child plan plays an essential role in securing your little one’s future and dreams financially. So, you may not want your investments to be subjected to high market volatility.
Based on the chosen child education plan in India, you can make the most of its risk management features. These can include options of safety switch, systematic transfers and auto fund rebalancing to balance the risks over time and receive adequate returns to safeguard your kid’s future.
- Tax Benefits
A child investment plancomes with tax benefits under the Income Tax Act of India, Section 80C. The premiums you pay up to ₹1,50,000 towards the plan are subject to exemption from your taxable income. Apart from that, the payouts of the child plan are subject to an exemption from taxation, under Section 10 (10D).
It is a good idea to start investing early in the best child education plan in India of a reputed insurance provider to allow the returns to grow over the long term. But how much should you invest to support your kid’s education? For that, use a child plan calculator. It considers the policy tenure, your estimated corpus and the amount you can invest regularly to help you plan your investment.
