Even though literacy in India is the very key to all socio-economic progresses, it has the least literacy rate of 74.04% among all the nations in the world. However, with a lot been done in spreading awareness in that direction, the gap between the world average rate is steadily bridging. Education is totally liberating. It enhances the otherwise frozen and rusted powers of thinking and opens windows to the world, thereby generating smarter, more stable individuals who will later work the world. It is a weapon to break down all walls of misery.
Your child will keep building castles in the air, therefore, it is important for you start buying the bricks for those castles today. Your family holiday can wait. Help your child by saving now, so that he/she can take you to bigger destinations in the future.
What is a child education plan?
Loving one’s child comes naturally to every parent, but alongside of moulding the child into a better individual, you have some obligations and moral responsibilities to play being a responsible parent. One such obligation is getting a child plan.
A child plan is a double edged sword that solves two purposes- financially securing your child’s future and financing the turning points in your child’s life such as higher studies, wedding, etc.
What is the need for a child plan?
Child Education Plans are designed to provide financial security to your child so that his/her education is hindrance free regardless of all mishaps, even after you. A certain pre-decided amount is given as corpses to the child upon the death of the bread-winner. This is done so as to lift off the burden of education and finance from the child’s shoulder, since the emotional and mental damage done would be enough. Is your demise really reason enough for an unsafe and insecure future of your children?
How will it benefit you?
At the current rate of inflation, the sky-high cost of education is worrisome, and is expected to only rise in the near future. Studies have shown that given the present scenario, it takes about 20 years for an individual of an average degree to repay the complete expenses of education and tuition fees spent on him over a lifetime. With a child plan previously chalked out and planned out, this burden is off you.
What are the value added benefits?
1)Financial protection- Upon death, the nominee gets the full amount of corpus in lump sum.
2)Control your investment- You can choose to invest between equity, debt and balanced funds and change as per your convenience, free of any hesitation, charges or taxes.
3)Tax benefits- Tax benefit can be attained on premiums under section 80C and on proceeds from maturity under section 10(10D) of the Income Tax Act, 1961.
4)Growth of investment- The premium paid by you will be invested in your choice of equity, debt or balanced funds so as to generate corpses.
5)Degree of protection- You can choose your level of protection, as per your needs and affordability.
6)Flexible- You can either pay the entire amount of the policy in lump sum at one go, or pay small installments throughout the duration of your policy, as per your choice and convenience.
7)Emergency funds- Withdrawals can be made from investment due to emergencies, five years into the plan.
With so much to gain and nothing to lose, what are you waiting for?
