5 Things to Focus on While Buying a Child Education Plan


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Being a parent, you must be worried about your child’s education more than anyone else. And it is not only about what they will do when they grow, but it is also about, will you have enough funds to support your child’s dreams? The former is not in your hands, as the kids will explore their options as they grow up. However, you can take care of the latter with a child education plan. These plans assist you in saving and securing money for your little one’s ideas. But selecting them can be a hefty job because of several available options. Here are five factors that will help you decide which plan is the best for you. So you will not have to put in much effort while making a decision.

5 Things to Focus on While Buying a Child Education Plan

Start Early To Secure Better

This rule goes for almost all investment or savings policies, and child education plan is no different. The current fees of higher education colleges are above ten lacs for most of the courses. Plus, the rates are rising every year. So these might get double or more than that within the next 15-20 years. That is why the early you start, the more you will be able to save. Even if you are not a parent yet, it would not be a bad idea to keep these savings away. Or you can start right when the kid is born, as it will give you enough time to save for their future.

Grow With Years

You may start a child education plan with the best possible amount in your present income. But if you keep the amount the same even after years of growth, then there is a big chance of missing out on better savings. As your income rises with time, you need to increase the investment amount so that you can get the best available returns.

Inflation Should Be Considered

It will help if you opt for a child education plan while keeping inflation into consideration. You can check out the education inflation rates and see how things will change in a decade or two. As mentioned above, the rates/fees will mostly be double or triple the amount that they are currently. So when you decide on the education plan, it is crucial to keep this factor in mind and then only start your investments.

No Low Returns

When it comes to long-term plans like child education, people tend to fall for lower returns and safer options. However, considering the education inflation, you should not opt for policies that provide low returns. The risks will already be moderated with the tenure, so these will be the best option.

Premium Waiver

This is the most crucial benefit of a child education plan. It helps in keeping the policy going on, in case you leave your family in uncertain conditions. Premium Waiver can either be a part of your plan or added as a rider. Whatever may be the method, this feature must be included in the policy.

Keep in mind these five points, and you will be able to plan the best education for your child, without much last-moment worry.


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