Children are amazing and shouldn’t their future also be as amazing! Giving them a good education might bring them a step closer to a bright future along with the decisions that are taken along the way. To be able to give a good education and life in today’s world, one requires money. So, taking up a child plan will help the parent or the guardian of the child in helping them to do that. Children need to be taken care of and their future should be planned for as they are our future. Getting them into a child plan will help their feasible dreams turn into reality. Getting a child plan will help to up the scale of the future of the child as it will financially help them to grow and make their dreams into realities.
Do my children need a child plan even though I can provide well for them?
Not only do you need the child plan for saving for the child’s education but you would also require it for situations which are not controllable. In case of the unfortunate death of the parents or the guardians, the child plan will look out for the child by providing them financial support to take their life forward.
Child’s Education Planning: What to keep in mind?
To plan the best kind of education for your child so that their future seems brighter, one may take up a Child Education Plan Policy because that will help the parents or the guardians to plan better in terms of finance for their child and their survival in case anything happens to them. The following are some point that you need to remember:
How much to save?
As parents, you will start dreading as the time for your child’s higher education comes closer and closer because, let’s face it, the cost of a university education is sky rocketing and it seems like it is going to keep going higher and higher due to the inflation and in the years to come, it might really hit the heights. So, you need to keep in mind about the kind of money that you want to save for the education of your child. If you think that you can save up enough for them to get an education abroad, according to your financial standing, then you can plan for international study rates and if not, well, planning for a domestic education is not easy either and a child education plan can help you greatly. You need to keep in mind about the costs of an education abroad or within the country and add estimate costs of the inflation rate which will increase the costs in the years that are left for your child before they start their higher education. Then, you can easily plan how much to invest into a child education plan in order to obtain the corpus that you want for your child.
When to take up the plan?
While planning for your child’s education, you need to remember that the sooner you start with a child education plan, the more amount of corpus you will be able to accumulate for their future. Most plans offer an option to enter into a child education plan immediately after the child is born, which is at the age of 0 years which is probably the best time to do so as you could have a solid 17 to 18 years of investments which will get you a huge sum assured amount depending on the amount of premiums that you put in. Some plans also offer the option of entering when you child is 3 months old or so; you can choose whatever suits you the best. Maybe the first 3 months you would want to spend your finances on the present health and care of the child solely and later start up the child plan. Entering your child into a child plan as soon as possible also has another benefit that comes with it. In case of an unfortunate event like the demise of the parent or the guardian or even their disability which leaves them unable to provide for their child, it would become difficult for a minor child to take care of themselves at least in terms of finance, so the child plan’s funds will make sure that the child is well taken care of or can at least has the financial support to do so.
When would you like your child to become the underwriter of the plan?
For the child to become the underwriter of the web, the child education plan has to be shifted from the parent or the guardian to the child. The process of the shifting of the policy is called vesting. As the child is a minor when they are entered for a child plan and they are incapable to following up on an insurance policy and pay premiums for it, the parent or the guardian of the child is the one who is underwritten for the plan as they are the ones who will be paying for the investments of the plan.
Now, different policies have different ages for the vesting of the plan. Some offer vesting at the age of 18 years when the child attains majority or 21 years or 25 years. So, you need to keep in mind about what vesting age a plan has and if it matches with when you want your child to be the holder of the child plan. Whatever would suit your child’s requirements should be taken into consideration.
Keep in mind all these aspects and sail through the process of earning a good corpus through a child plan for the education as well as the future of your child. Keep your kids safe! For the proper planning of anything, let alone child plans, you need to do proper research to find out what your requirements are and investing into what sort of plan might fulfil those.