Your child has dreams. He or she might want to explore the space, scale Mt. Everest or even conquer the whole world. And as a parent, you would want to make sure they keep doing whatever they want to do. But without quality education, your child might not have the future he or she deserves.
Given the fact that children’s education nowadays is one of the most significant cash outflows that families in India have to deal with, you need to start planning your finances as early as possible. This will help to maximise your savings through returns from investments, so that your child can continue to dream.
You must plan to build an amount that would help your child through various stages of life. And periodically review your investment strategy to ensure that your finances remain protected from the volatile market conditions.
But most importantly, you need to make sure that your child’s education and dreams remain on track, even if something serious happens to you. Which is why you must invest in the child education plan for your kid.
Child plans are essentially life insurance plans that come with an opportunity for investment. Thus, you can not only build wealth for your child’s future but also make sure that their dreams are protected even if you are not there to take care of their needs. Need more convincing? Here are some reality-checks that will help make your mind.
The Cost of Education is Exponentially Increasing
As young professionals and now parents, you would already know how expensive it is to sustain a family and educate yourself. In the future, education will be even more costly.
Starting with kindergarten, your child’s education would mean paying for their school fees along with all those fancy-dress competitions, and school picnics. As your kid would go from school to college, you will have to deal with the ever-increasing tuition fees while continuing to provide for your family.
Therefore, you would have to plan your finances accordingly, so that you can keep up with the rising costs of education each year.
Small and Regular Investments Can Get You More
Popular child education plans from reputable insurers such as Future Generali allow you to invest small amounts of money regularly. With time, these regular investments are compounded into a handsome amount, which in turn, would help reduce the financial liabilities of your family.
Further, you can be sure to take care of the timely payments of your child’s college fees with the returns from the plan.
You can Avoid Taking Education Loans
In India, it is quite common for parents to arrange funds through education loans and fulfil their child’s dreams of studying abroad. As a young parent yourself, you could be paying your education loans right now.
Therefore, you would know the drawbacks of having an additional financial liability such as a loan. With a child education in your investment portfolio, however, you can put your savings to work today. And by the time your child is old enough to go off to college, you would have a large amount ready to take care of their expenses.
Combined Benefit of Investment and Protection
Some of the best child education plans in India are essentially ULIP plans that offer the dual benefit of life insurance and investments. Your investments, therefore, not only get a chance to grow under the plan but they are also protected from all eventualities in life.
Further, you have the option to strengthen your plan coverage through various riders. These add-ons cover your investments against accidental death and accidental total and permanent disability and help ensure that your child continues to receive the benefits from the plan, even if you haven’t made all the necessary premium payments.
You Can Avail Comprehensive Tax Benefits
To top off the list of benefits that you can avail from a child insurance plan, there are comprehensive tax deductions that you can avail on your investments.
The premium amount invested under a child education plan is eligible for deductions under Section 80C of the Income Tax Act 1961. Also, the maturity proceeds from the plan are exempt from tax under Section 10(10D).
Your Child’s Future Needs Protection Too!
Nothing in life gives more pleasure than watching your child grow up healthy and happy. Under no circumstances, would you want them to feel low or deprived of opportunities.
Therefore, you need to start working towards protecting your child’s financial future against all disturbances, through disciplined investments into a child plan.
At Future Generali, we understand what responsibilities parenthood can put on you, and therefore, our customised child education plans are uniquely designed to suit your goals and investment abilities. To know more about our child plans, be sure to visit our website or simply give us a call.