WHAT IS AN EDUCATION PLAN?
An Education plan is the process of arranging for the financial aspect of education like tuition fees, living expenses, and other educational costs. It involves educational goals, identifying funding sources, creating a budget, and managing education costs. In other words, the process of carefully establishing objectives, choosing options, and allocating resources to realize desired educational results is known as educational planning. It is crucial to make sure that resources are used efficiently and that educational goals, social requirements, and learning opportunities are available for both individuals and communities. Educational planning involves the systematic analysis of educational development to improve its effectiveness and efficiency in meeting the needs of students and society. It is a rational approach to making education more effective. Proper planning helps educational programs succeed by ensuring optimal use of available resources, providing solutions to educational problems, reducing waste, and preserving future values, skills, and culture.
BENEFITS OF CHILDREN EDUCATION PLAN
MATURITY BENEFIT TO MEET COLLEGE EXPENSES
Most parents wish their children to take up professional courses to be engineers, architects, lawyers, or doctors. However, the fees for these courses are becoming increasingly unaffordable, and you may have to use loans to meet your child’s educational needs. If you wisely start investing in a child plan at an early age, the investment pool accumulated at maturity will be sufficient to cover inflated college fees.
FACILITY TO AVOID CAPITAL EROSION
As markets fluctuate, the returns on investments vary. To make the best of the invested amount and save it from capital erosion, a dynamic fund allocation strategy needs to be adopted. Child plans offer a choice of funds and Systematic Transfer Plans or STP privileges to plan your investments according to expected returns at different life stages. Through STP, you can automatically swap purchased fund units to make the most of market fluctuations.
OPTIONS TO CHOOSE RIDERS
Certain plans will waive the entire premium to be paid during the policy tenure if the insured person passes away. Similarly, riders such as personal accident insurance riders are useful if the person purchasing the plan is not around anymore or is severely injured.
PARTIAL WITHDRAWAL TO DEVELOP YOUR CHILD’S TALENT
If your child has a special talent, such as acting or playing a musical instrument, you can develop it further through partial withdrawal from the child’s education plan. Moreover, certain plans come with periodic payouts that will be useful to meet the expenses incurred while enhancing your child’s talent.
SUPPORT FOR YOUR CHILD’S SCHOOL FEES
If the parent purchasing the child plan is not around anymore, then the insurance company pays around 10% of the sum assured immediately, and periodic annual payouts amounting to 10% of the sum assured are paid each year until the end of the policy tenure. These payments are sufficient to pay your child’s school fees in your absence.
Also Read:-