The prevailing intense competition of this modern age has led to a major percentage of Indian parents to prioritize their children’s education as the foremost vital financial obligation. About 89 percent of Indian parents finance their children’s education from primary levels of schools to the undergrad level of university.
The reasons behind prioritizing child’s education are:
- 87 percent of Indian parents believe that their children have brilliant future.
- 85 percent of Indian parents believe their children will get excellent jobs.
- About 82 percent of Indian parents think that their children have the prospect of achieving remarkable grades.
The Indian parents are so passionate about their children’s education that they are even ready to make sacrifices, seek for various child plan insurances and are ready to pay out child plan loans as well.
How Indian Parents Finance Their Child’s Education
- Paying out from general savings for their child’s education is the most common way out for Indian parents. They readily pay out lump- sum amount for their children’s schooling and higher educations.
- Indian parents also consider seeking various child plan insurances and education loans also to secure their child’s future. They willingly pay handsome amount of premiums to various child plan insurances all through their life. Many parents are even keen to finance their children’s education in abroad.
- Besides, some Indian parents pay out the children’s education expenses by sacrificing their family inheritance also.
Prudent Child Education Insurance Plan
Considering the dedication of Indian parents regarding their child’s education funding, child plan insurances seem to be the most worthy solution. There are several child education plans out there to provide you with the necessary funding and protection to your child. Besides, you can enjoy tax benefit with these children education plans. Choose the most prudent option among the popular child plan choices this financial year, 2018:
SBI Smart Scholar Child Plan
It is a non-participating unit-linked education plan for your child that offers both savings for your child’s future and also insuring your child. The key features of this plan are:
- The age of entry should be between 18 yrs and 57 yrs.
- Maximum age of maturity is 65 yrs.
- Insurance term will be between 8 yrs and 25 yrs.
- Minimum assured sum should be 10 or 7 times of the yearly premium (for regular pay) or 1.25 times for single pay.
- Moreover, you can avail premium waiver, benefit on accidental demise and also disability riders privilege.
Aegon EduCare Education Policy
This is one money back education plan for your child which participates to offer you revisionary and additional bonuses at maturity. Key features of this plan are:
- Age at entry should be between 20 yrs and 60 yrs.
- Maximum age of maturity is 75 yrs.
- Insurance term can be 14 yrs, 16 yrs or 20 yrs.
- Minimum assured sum should be ₹1 lakh.
- This plan comes in with death and tax benefits.
Young Scholar Aviva Education Plan
This unit-linked education plan for your child does not participate. However, this offers you to accumulate corpus for your child’s future through investment opportunity. Check out the key features:
- Age at the inception of this policy should be between 21 yrs and 45 yrs.
- Maturity age is maximum 60 yrs.
- Term of the policy is 10 yrs to 25 yrs.
- The minimum assured sum will be 10 times of the yearly premium.
- This plan also assures death and maturity benefits. Besides, it gives your loyalty bonuses at various intervals.
College Plan by MetLife
This is a participating and non-linked endowment child education plan. It helps you raising fund and provides protection as well. Key features of this education plan are:
- Age at the inception of policy should be between 20 yrs and 45 yrs.
- Maturity age is maximum 69 yrs.
- Term duration of the policy is 12 yrs to 24 yrs.
- The minimum assured sum is ₹2 lakhs 12 thousand and 40.
- The plan comes with death, survival and maturity benefits with additional bonus facility.
- On the demise of the insured person, the assured sum amount is received by the beneficiary as death benefit.
Siksha Plus Education Plan by MaxLife
It is a non-participating and unit-linked plan for your child’s education. Key features of this plan are:
- Age at the inception should be between 21 yrs and 50 yrs.
- Maturity age is 65 yrs.
- Term duration of the plan is 10 yrs/15 yrs to 25 yrs.
- The minimum assured sum is 10 times of the yearly premium.
- Moreover, this plan provides definite maturity and death benefits. An additional loyalty benefit is guaranteed.
- This child plan also comes in with premium waiver riders.
Compare various child education plans available and choose the best education plan option to shape up your child’s brilliant future. Besides, these children education plans not only fund your child’s career and give life coverage, but also help you having the benefit of tax deduction.