How child insurance plan helps to meet education needs of children

When parents say, “We want our kids to have the best of education at all costs”, they really mean it.

- Ashwini Kumar Sharma

 If cost is not a factor, they should be saving the right way for their kid’s education needs. However, keeping in mind the rising cost of education and the uncertainty involved in the funding process, it is not easy to meet them unless you have a proper plan in place.

Various investments such as public provident fund, mutual funds, shares, gold, real estate etc. are self-funded in nature. One needs to be alive to keep investing in them to accumulate wealth. But, on death, the funding in all likelihood would stop and the goal may be jeopardised. A better alternative, therefore, is the child insurance plan, which too is self-funded but in the absence of parents, the insurer funds the policy.

These insurance plans are structured in a way that they help in meeting the education need of the child. Only a child insurance plan can ensure that funds as per the requirement and as and when required by the child can be accumulated. In the event of the insured parent’s death, the plan ensures that the desired sum is given to the child at the desired age, not earlier or later. Also, in the absence of the insured parent, the insurance company starts funding the policy. This ensures that the plan to save for child needs does not get derailed.