Every child deserves a quality education. Not only does it open up lucrative avenues for their future, but it also helps in developing their personality. However, providing quality education to your children can be quite expensive. This is why parents who have big ambitions for their young ones take early steps to cater to these expenses.
While there are various ways to save up for your child’s education, buying the best child education plan has proven to be the most effective. Child education plans allow systematic and disciplined, goal-based investments that offer returns in a time-effective manner.
But choosing the best child education plan can be tricky. You need to opt for a plan that not only allows savings and investments but also offers coverage to your child in case of your untimely demise. In addition to this, there are a few other things that you need to keep in mind to make sure you’re getting your hands on the best child education plan. Let’s take a look at few of these factors.
1. Look For A Plan That Offers Premium Waiver Benefits
Some of the best child education plans come with a premium waiver benefit. This means that in case of the untimely demise of the policy holder, the insurer would waive off the future premiums and continue to provide coverage till maturity. This benefit also covers other eventualities as well, such as illness or accident of the policyholder. This feature is essential as it helps keep financial stress at bay and allows children to follow their educational dreams even in the event of an unfortunate incident.
2. Choose A Plan That Offers Flexibility Of Term
Even the best child education plan would not be able to be of much use if it doesn’t offer the required financial help in time. This is why you should opt for an education plan that offers flexibility to choose the term. This way you can plan the term of your policy according to the educational goals of your child and get the required amount exactly when you need it.
3. Various Payout Options
When purchasing a child education plan, you can select between an endowment and a money-back option. Let’s take a closer look at these alternatives.
- Money Back Option – With the money-back option, you will get guaranteed payments throughout the last five years before maturity to meet your child’s educational requirements. However, the time period can vary depending on the terms of the policy chosen. You will get an assured maturity amount at the time of maturity, which you may utilize to fund your child’s further education expenses.
- Endowment Option – In contrast, with an endowment plan, you will get a guaranteed lump-sum payment at maturity. This sum can be used to cover greater expenditures such as overseas education.
You should opt for an education plan that lets you choose between these alternatives, giving you the flexibility to invest as per your risk appetite.
4. Choose A Reliable Insurance Provider
When you’re looking for one of the best child education plans to secure your young one’s future, you must choose a reliable insurance provider that has a trusted name in the industry with an impressive claim settlement ratio. Choosing the right insurance provider ensures that your valid claims are settled in a hassle-free manner and you or your nominees don’t need to go through any hassles in getting your rightful claims.
Every parent dreams of providing the best education to their child. But sometimes because of a lack of planning these dreams stay unfulfilled. Getting the best child education plan enables you to live your dream of providing your child with quality education and allows your young ones to live to their fullest potential.
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