Every parent seeks a secure future for his/her child. A secure future primarily depends on what kind of support the child gets during the key milestone of his/her life i.e. education.
As per a study, only 10% of students in India among the university-age population have access to higher education.
Just like most parents in India, even Rihaan and Amrita were worried about building a corpus for their child’s education as the cost of education is growing at 10-12% annually.
They considered various options that can help them build a corpus for their son’s education. But they then realized that if they were to append the risk of life’s uncertainty that is an unfortunate event of an untimely death or disability to the cost of education then their child’s goal would actually be hampered to a very great extent.
They finally thought of settling for an insurance plan that gave them the benefits of both world protection plus investment.
Why did they choose an insurance policy for their son’s education?
In order to ensure that their son’s goals are not compromised for any reason, they thought it would be a good idea to consider taking an insurance policy for child education.
Now, you think that how an insurance policy for child education will be beneficial? Insurance is not only about protection. With an innovation in the digital space and the insurance industry, there are ULIPs which cater to both the needs of investment and insurance. The new age ULIP that is Edelweiss Tokio Life – Wealth Plus is different from regular ULIP as it provides a rising star benefit which is very beneficial for any parent.
Rising star benefit acts as a perfect child education plan as it offers dual benefits:
- It protects the child against unfortunate event of the policyholder’s untimely demise with a Death benefit by providing an immediate lump sum amount to the nominee
- All the future premiums are waived off and are immediately credited in the fund along with all additional benefits like premium boosters by the insurer. This ensures that wealth accumulates and at the end of the term, the child gets the
Edelweiss Tokio Life Wealth Plus gives you the flexibility to invest in small amounts every month without creating an aggregate financial burden on you. This makes it easier to build a corpus by the time the child is ready to pursue higher studies abroad.
Now that you are aware why Rihaan and Amrita made a smart choice by investing in a plan that offers dual benefits they also made one more smart decision of investing as early as possible i.e. when their son was just 2 years old.
This enabled them to spread their financial risk allocation across individual high-rated funds and also build a substantial corpus considering the power of compounding over a span of around 15-20 years. They also invested earlier so that they could reap the complete benefits of the additional allocation provided by the company at regular intervals.
Life has both pleasant and unpleasant surprises in store for your child. Making a smart investment decision that will not only build a corpus but also secure your child in case an unpleasant situation occurs in the future