Why is it important to have Education insurance plan for your children?
With growing standards of living, the expenses for educating your child are rising. As parents we start planning for the future of our children but don’t always think of the unthinkable, so it’s always best to secure the future for your child’s education in case of any unforeseen circumstances.
Planning or even saving for your child’s education can be confusing, trying to decide when and how to start. The best place to star is to look at insurance as one of the investment channels. Insurance is a secure way to provide education fund for your child when the fund is needed.
Education insurance plan offers a lot of flexibility, which allows parents to select the one that suits their needs the most. There are different types of Education plans, so choose carefully when deciding for your child.
Types of education plan:
- Insuring yourself - a large sum that provides for your children’s future expenses, along with the rest of your family’s expenses for the future.
- Child insurance - provide for your child’s future expenses through an insurance policy that will ensure she/he receives money at the age you want them to, in your presence or absence.
- Money back insurance plans - ideal for parents planning for life stage events like child’s education, marriage or seed capital for a business opportunity.
- Additional premium - cover as many children as needed, even if they are at different education levels. The premium payable depends upon the child’s current school or tuition fees, and you can arrange to pay the premium annually or each term.
Before deciding on a plan, parents should have a distinct plan in place for each objective with the process commencing by defining each objective that is to be accomplished.