Introduction
You are a qualified professional and want your child to attain the same standards in education so that he/she is capable of leading a quality life. Which parent doesn’t want that?
With the passing years, the gap between the rich and the poor is getting wider. It is because in India, the white collared jobs are largely taken by those who study in premier institutes. And the fact of life is that not everyone is capable of studying in these high category colleges. It is not because of the lack of the talent but is due to the insufficient funds. This is why saving for your child’s education and then their future milestones has become important. Things can be unbelievable because your parents had spent a few thousands on your education in an IIT. For the same qualification, you will have to shell Rs.10 to 15 lakhs for your child to study. Though inflation impacts the cost of living rather everything. But does that leave you with enough money to be financially prepared for your child’s education.
The most suitable way to be monetarily ready to support your child at important milestones of life like education or marriage is to buy a child protection plan life insurance.
Let us further explore what child protection plan insurance is and how it helps? But before that, understanding the relevance of higher education is relevant.
Importance of higher education.
Higher education is a dream for those who aspire to contribute to bigger changes in society. The higher institutes that render the education assure the students of sharing with them the quality of education that makes them future ready. The special programs these institutes introduce build and develop the right skills in the students enabling them to contribute for the economic development in the society. When the students gain higher qualification in the country, they can:
- Huge gap between those with a degree and those without one: Higher education makes the individual enable to contribute to the development of the society. They can contribute to the improved productivity and growth of the country with their developed mindset and exposure.
- Technology is the future: With the rapid development and adaptability to artificial intelligence, it is crucial to understand that nothing is impossible without technology. The job roles are changing with increased use of technology. Only those with required skill sets are able to face the demand of the new times.
- All rounders are in demand: The college education motivates an individual to demonstrate robust skills. These combinations of skills are needed in the companies where the employer wants a candidate to demonstrate great skill of knowledge as well as communication. And for overall development, higher education is important.
- Contribute to the development and growth of business: The individuals who get a chance to study more, can support the businesses and industries by giving them a new perspective all together. They are considered more brain efficient hence the demand for such a talent is higher.
- Upgrades needed in different sectors: Higher education can lead to advancement in the areas of health and social engagement. This excellence can be attained only via the route of higher education.
Though the demand and the importance of higher education has increased manifold, not everyone finds it easy to gain higher education. This is because of some obstacles that create roadblocks.
Let us closely observe the hurdles in higher education.
Hurdle in higher education.
These are the common hurdles in higher education:
- Competition: Considering the premium institutes, the seats available and the population, the proportion is a mismatch. See for example, there were about 2.29 lakhs applicants in CAT. But the seats available with the premier institutes is only 5100 approximately. There should be more colleges and then the job opportunities to tap the talent in the right way.
- Finances: Even if the students are capable of making it through the colleges, they may have to leave their spot due to insufficient funds. For example if the child receives the admission chance in IIM Calcutta, she/he will have to pay a fee of Rs.23 lakhs. Not everyone is capable of such a high cost of education.
- Poor infrastructure by government institutes: Poor infrastructure is another challenge in higher education. The government run institutes lack infrastructure and facilities. It breaks the career and hopes for many students who cannot afford to pay the fees of the private colleges but have the talent to make it up for higher education.
- Structure of higher education: The Indian education system faces obstacles of over centralization, lack of accountability, and professionalism. As a result of this, there has been an increase in the number of affiliate colleges. This has further added to the burden of administrative functions which takes away the attention from academics.
Reading about the obstacles, you cannot do much about changing the structure or opening up of colleges. The only thing you can take care of is finances. Arranging finances for your child’s higher education is possible when you save considerable money, that too, consistently.
Keeping away the money from your salary may not enable you to save lakhs of rupees required for higher education. This is why owning a child insurance education plan is better.
Let us read further how the policy helps.
How can a child insurance education plan help?
A child insurance policy is an insurance plan that provides you the benefit of insurance as well as saving. The insurance policy is a way to prepare you financially for the child’s future goals like higher education. The policy makes you capable of spending when it is needed the most.
The child plan helps you in the following ways:
- Protects the goal like education: The child insurance plan protects the goal of the child’s life. The policy will support the child even when the life insured (parent) is not there. If the life insured passes away, the plan will mature on the maturity date and the nominee will receive the maturity value.
- Partial Withdrawals: The child insurance plan not only provides the maturity benefit. It also allows partial withdrawals. If you think the child has a talent and wishes to hone it for the future, you can withdraw the amount from the policy.
- Maturity Benefit: The child plan will pay the maturity benefit at the end of the policy. The benefits will allow the child to meet the college expenses of the child.
Apart from the benefit that the child insurance plan pays, the policy provides tax benefit to the policyholder. The policy allows tax deduction under Section under 80C of Income Tax Act,1961.
Best Child Insurance Plan.
The best child insurance plan that you can think of is ABSLI Child’s Future Assured Plan.
- The life insurance plan provides assured benefits to take care of important milestones in child life like education.
- The plan provides flexibility to choose premium payment terms and the policy terms.
- After the parents’ demise, the policy continues to provide the benefit. The maturity benefit will be paid at the time defined in the policy. All the future premiums will be waived off.
- The policy offers 20% loyalty additions added to the assured benefits.
Let us understand the benefit with an example. If you are 35 years old and invest Rs.1 lakhs for 10 years, you can buy ABSLI Child’s Future Assured Plan. You can choose the plan option: Education & Marriage Milestone. for Policy term: 29 years. The Premium paying term: 10 years and Annualized premium: ₹1,00,000 (excluding tax). The Sum assured: ₹18,65,846 (₹9,32,923 for each benefit) and Payout option: 9 years. You get 24.62 lakhs as total guaranteed benefit in the end.
Conclusion
A child insurance plan helps you approach a significant milestone in your child’s life. It is very important to arrange for funds and prepare yourself financially when your child is moving up for higher education. The savings and the insurance policy can help you plan better for a secured future for your child. With a child insurance plan you can fulfill a child’s dreams and give them a hope to have a better living. For more details on how child insurance can pave your way, read here.
