Should you also include insurance in your child's education investment fund?

While you plan for your child’s future need you could be confronted with various issues- how to start, what exactly to save for, how much needs to be set aside etc. Education costs have been sky-rocketing for the past few decades world-over such that parents are forced to begin planning for their child’s future a few years into their birth. Now will just the right investment plan suffice or should one include insurance as part of the child education fund is what we shall discuss further from here.

Forbes quotes that- “The average cost of attending a four-year college or university in the United States rose by 497% between the 1985-86 and 2017-18 academic years, more than twice the rate of inflation.”

The cost of educating children in India does not fall back either. Pandemic or not, the costs of education have not slumped, leaving parents worried about handling the growing costs of securing the child’s future. A post-graduate management degree from IIM-Ahmedabad that costs about 20 lakhs today is likely to cost a staggering 90 lakhs by the year 2025. An engineering course that costs Rs 8-10 lakhs could go up to 20 lakhs in the next eight years. 

With the right child plans, an investor takes home a guaranteed payout for financing the child’s education and or a hobby thus ensuring that the child’s needs are first taken care of even if the parents are not around. Opting for the right child plan provides the dual benefit of life insurance and investment for the parent. The policyholder can thus secure their children’s future as well as build up an investment corpus to help meet major milestones in the lives of their little ones. With a child insurance plan, the parent is the policy owner while the child is the beneficiary. In the event of the parent who has purchased the child education plan suddenly passing on, then the insurance company immediately pays a percentage of the sum assured, and the rest is paid annually until the end of the policy term. This amount paid will be sufficient to pay off your child's school fees even in your absence.

Benefits of a child education insurance investment plan-

• Enhanced returns for smaller regular investments- By investing an amount of money regularly, your investments compound into a fat corpus that would help reduce the burden of handling higher education.
• Unnecessary loans can be avoided- Educational loans can be easily done away with if you carefully plan your child’s education expenses with this kind of smart investment.
• Dual benefits of both investment and protection can be obtained- further by adding a waiver of premium rider; even additional premiums need not be paid in your absence.
• Tax benefits: The premium is deductible under section 80(C), and the maturity amount is exempt from tax, unlike fixed deposits or equity shares, which usually attract a long-term capital gains tax.

Allow your children to grow wings! We live in a time and age where nothing is impossible, all that it takes is a little bit of planning. 

Genius assured benefit plan

Genius Assured Benefits Plan offers a one-of-a-kind child education and insurance plan- genius assured benefit plan that extends beyond just an investment. The plan is flexible in assuring education support benefits during payout, premium payments, and additional insurance protection.

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Created on Oct 22nd 2021 00:06. Viewed 328 times.

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