Planning for the children and giving them the best of everything is every parent's dream. Child's education and marriage requires a lot of systematic planning. These are generally goal based planning and thus some amount of money needs to be allocated every month.
For an adequate education nest egg, critical for your child's higher education, you will have to do three things right: invest the appropriate amount, at the right time and in the right mix of investment options. A savings effort that factors in these three points will help you clear the fourth hurdle which is inflation to building a substantial education nest.
Why Child Insurance is required? Increasing cost of education, because of which one needs to start saving early.
Child Insurance plans has the benefit of Waiver of Premium, which says that if something happens to the parent, all the future premiums are waived off and are paid by the insurance company and thus the goal for which child planning was done does not get defeated.
Also it inculcates tax savings under the prevailing income tax laws.
Parameters to be taken into consideration while doing Future planning for your child?
Start as early as possible
Generally the tenure for planning for your child is 12-15 years. Thus one should start planning early so that you are able to create some amount of corpus at the time your child requires. Also the compounding effect reduces if you start late. Thus planning for your child on time is important.
Place security with Life Insurance cushion
Thanks to the insurance cover, even in the event of your death, your child's higher education can proceed unhindered