Doing Enough To Fulfill Your Child's Dreams? Find Out!

Parenting is no easy task. You have to be a bank that never runs out of money and an advisor who never runs out of advice. A parent’s relationship with their child goes beyond just being a loving presence and becomes about the sacrifices that are to be made for the child at every stage in their journey through life.

However, no amount of parenting can be able to compensate for the skyrocketing costs of education in India. By 2028, India will have the largest workforce in the world, with a good chunk of that population having engineering degrees or post-graduation diplomas. Higher education is becoming unaffordable for many parents because of rising tuition rates and minimum wages.

This keeps many children out of colleges that they had aspired to go to all their lives — this is not a mere inconvenience but a huge financial setback for parents and their children alike! How do you plan for your child’s education when your salary is not enough? An investment in a child education plan is an investment in a better future, here’s how.

Child Education Plans in Brief 

Let us know what is child plan is in brief - So, you've got a kid? Congratulations! Now, how do you make sure they have enough money to pay for college, get a car, and not be a freeloader in their mid-20s?

It's called a child plan. It's one of the most popular financial vehicles out there to build up a corpus for your child. It takes into account the various milestones in your child's future for which a substantial amount of money might be needed.

If you want to make sure your child has access to the resources that they need to get through life without having to ask mom and dad for help, then this is the way to go. It's essentially an investment plan that can meet all of your child's financial needs from kindergarten through grad school.

How does a child plan help to fulfill your child’s dreams? 

1. Combined Benefits 

A child education plan is generally an investment-cum-insurance plan that helps you build a fund for your child’s future needs. The money can be utilized to fulfill her educational/career/personal goals. In addition to the investment, a child plan also provides insurance cover to protect your child from any exigencies that may arise during the investment period.

In case of an unfortunate event like the death of the parent, one can opt to provide for the family by choosing appropriate insurance cover for the spouse as well. On maturity, the proceeds of your investment can be used for any of the financial needs of your child such as higher education, marriage, or setting up a business.

Before you decide on buying a plan, you must understand what kind of investment options are available and how they work.

2. Funding for Education 

When it comes to your child's future, you may be faced with a lot of stress and uncertainty. A good education is the best gift that parents can give their children, but quality education comes at a price. In addition to the basic tuition, expenses towards extracurricular activities, field trips, and so on add up to a significant amount.

One way to ensure that your child receives the best education possible is to create an investment plan for them. Better yet, make this an investment plan which is market-linked and therefore inflation-proof. The earlier you start investing in your child's education, the more likely you are to be able to give them the most incredible opportunity—a great education!

3. Works as Collateral 

Since children are the future of our country, their needs should be met to ensure a bright future for them. Child insurance plans can help you in fulfilling your child's dream by not only providing financial security but also getting your loan easily.

Child insurance plans have Surrender Value which can be used as collateral to avail a loan. The value of the underlying fund decides the loan amount offered. This way, you get a chance to fulfill the dreams and aspirations of your loved ones while they are still young enough to comprehend your efforts.

4. Premium Waiver Feature 

Imagine your child being able to go to the school of his dreams, and you not being there to see it. It's a horrifying thought and one that many parents have. But what if you could take steps to prevent your child from suffering in the case of an unforeseen event? Or better yet, what if you could ensure that even if something unexpected happens to you, your child still gets the best education and gains access to the top-notch resources he needs to succeed in life?

That's where child education plans come in. With features like waiver on premium, they help protect your child's future even if you aren't there to help them pursue it. The waiver on premium rider ensures that all future premiums are waived off in case of your untimely death. In addition, any remaining insurance dues will be paid by the insurance company.

This means that no matter what happens, your child is sure to get a lump sum amount for his future—be it for higher education or anything else he needs.

Final Words 

Now that you have understood what is child plan, you should know that it is always tough to decide the best path to take in life, especially if you are a young person. However, it is not as difficult as it used to be when you are armed with a child education plan right off the bat. A well-crafted plan will ensure that your child gets the education he or she wants without having to bear an overwhelming burden of expenses. With a child education plan, you have financial security and peace of mind so that you can focus on guiding your kid on her/his chosen career path.