Child Plan for Education: 3 Features to Look Out for

A child's education is one of their most valuable assets. Quality education paves the way for a bright future and turns young learners into successful individuals. But attaining this quality education isn't always inexpensive. Parents need to plan well in advance to provide their children with quality education and make financial decisions that help their children attend an institution of their choice and not compromise on their dreams and goals.

Purchasing a child plan for education is one such smart financial decision. A child plan for education is an insurance policy the provides life coverage as well as an opportunity to save money for your child's future. This plan pays a lump-sum amount at the time of maturity or in the case of the policy holder's untimely demise.

While there are numerous child plans for education available in the market, there are some features that you must look out for before purchasing these policies. Let's take a look at these plans.

1. Premium Waiver Benefit.

A child plan for education usually comes with a premium waiver benefit. This can either be as an already existing feature of the plan or an added option. This is an essential feature and comes in handy in case of an untimely death of a parent. Under this benefit, the insurer waives off all future premiums after the unfortunate death of the parent while continuing to provide coverage till maturity.

2. Flexibility to Choose Policy Term

A child might need financial help at any point in their lives, depending on their goals and plans. This is why it's very important that your child plan for education gives you the flexibility to choose the policy term. With this flexibility, you can choose when your policy matures and receive the maturity amount right in time to cater to your child's needs.

3. Different Pay Out Options

When you buy a child plan for education, you can choose between an endowment or a money-back option. Let's understand these options in detail.

• With the money-back option, you will get guaranteed payouts in the form of a percentage of sum assured at regular intervals to cater to the educational needs of your child. At the time of maturity, you will receive an assured maturity amount that can be used to cover your child's higher education requirements.

• With the endowment plan, on the other hand, you will receive an assured lump-sum amount at the time of maturity. This amount can be used to cater to larger expenses like foreign education.

In addition to these features, a child plan for education also helps you get tax benefits, further increasing your savings. These savings can also be utilized to provide a comfortable and secure life to your children. However, one must keep in mind that tax benefits are as per current tax laws, which are subject to amendments.

These features of a child plan for education make it clear that they are a great option for individuals who wish to provide best-in-class education to their children. With such a plan in place, you don't need to worry about your child's educational expenses and allow them to follow their passions without any financial hurdles.

In other words, a child plan enables your children to live up to their full potential by removing any monetary obstacles.

While there are many different options to choose from while buying a child plan for education, you must always choose a trusted insurance provider. These insurance providers are reliable and have an impressive claim settlement ratio, making sure your valid claims are settled without any hassle. You can check out their website to know more about their child plan for education.