Why Child Education Plans Have Become a Necessity?

When it comes to securing your child’s future, compromising is never an option. Leena and Gaurav decided to provide the best opportunities to their children be it safety, well-being, career or financial security. In the pursuit of fulfilling the basic necessities of their children, they were overlooking the long-term future plans. It was only when they met Gaurav’s elder brother Rajesh that’s when they decided to prepare for long-term financial planning for their children’s higher education. Rajesh explained to them that; expenditures like higher education, medical emergencies and marriage can cost a fortune. Therefore, to be prepared for such expenses and create a financially secured future for them, they need to start investing in a child education plan.

He further explained the benefits of a child education plan, & since there is no escaping from the ever increasing cost of education; such plans help overcome the onset of more expenditures in the future. Child education plans are multipurpose, which make them more exclusive. It gives various advantages like life cover and building a corpus for your child’s educational needs.

Child plans are not only beneficial in acquiring the right amount of money when needed, but also in offering comprehensive protection as well as a medium for investment. There is an urgent need for every parent to start investing for their child’s education as the current inflation rate and the inevitable cost of education could be a major concern in the future. If your child wishes to pursue an MBA degree from a reputed college, the minimum expense will be around Rs. 8 lakhs to Rs 15 lakhs now. So imagine, 10 years from now when your child is about to initiate his or her MBA studies, the cost of the same would nearly be a minimum of Rs. 30 lakhs. A sound investment plan will enable you to provide your children with proper resources at the right time so that they reach their career goals.

Rajesh further advised Gaurav and Leena to choose ULIPs for securing and building a corpus for their children’s future.

He explained, The new age ULIP, Edelweiss Tokio Life – Wealth Plus is perfect for parents who are planning to invest for their child’s education. This is because it has no allocation or policy charges. It provides free switches among its high rated individual funds. The company also invests with the policyholder in the form of additional allocations which increases at regular intervals. So the high rated funds, power of compounding, and additional allocation ensure that the returns are good.

It’s not just that, a major benefit of Edelweiss Tokio Life – Wealth Plus is the rising star benefit. Where if the policyholder is a parent then in case of an untimely death of the policyholder a lumpsum amount will be provided to the nominee, all the future premiums will be credited immediately in the fund along with the additional allocation so that the wealth accumulates and your child gets the financial aid to fulfill his career goals. The rising star benefit in Edelweiss Tokio Life – Wealth Plus ensures that your child’s immediate and future goals are taken care of.

After listening to the benefits both Gaurav and Leena were not only convinced about investing as early as possible but they were also considering the new age ULIP as their financial cushion.

Chirag Iyer - BFSI Enthusiast

Chirag is a writer and an avid reader who loves to drink coffee! His other interests include boxing, karate, and singing.