Children Education Planning

Children's Education planning involves making plans for the career growth of a child well in advance. The process involves planning the cost of education at current rates and then considering the inflation factor of quality education. Food and accommodation expenses need to be planned along with the college education.

• A quality education is the best gift parents can give their children.
• Education is an investment which pays the best interest.
• To provide the best education for children, you will have to spend a lot of money. Planning for child's education should begin when the child is young. This gives sufficient time to collect money for their education.
• With Children’s Education plans, funds for education are set aside. So, parents will not have to compromise on providing quality education to children.
• Education plans are eligible for Tax benefits.

You must opt for a waiver of premium rider in a Child Endowment plan. A rider is an additional benefit that can be obtained by paying a slightly higher premium.

If the parent dies before the plan matures, a death benefit is paid out immediately. The uniqueness of this plan is that all the future premiums are waived off and are paid by the insurer. On maturity of these plans, a guaranteed lump sum amount is paid out. The payout happens at two stages: one on the death of the parent and another on the maturity of the policy.

• The entry age to buy a child education plan varies from insurer to insurer.
• Entry age is 0-17 years for child and 18-57 years for the proposer.

While taking a Children’s Education plan, parents should make sure they consider the following features:

• Affordable premiums
• Flexible plan which helps to gradually increase savings for the future.
• Opt for the pay or benefit rider
• Adequate Sum required for the Child’s Higher Education Costs
• Rider Benefits like Health Insurance, Accident cover.
• Competitive Pricing and Returns
• Assured amount for Children in case of Parents Death
• Claim settlement ratio of the insurer
• Amount of money to set aside for the child’s education
• Less administrative Costs.