Parenting is one of the most difficult jobs and takes a lot of patience and love. Your child needs your attention and proper care in all aspects of life, whether it is their upbringing, physical and mental development, or even their safety.
While there are many ways to finance your child’s education, such as student loans, it is often associated with large debt that your child may have a hard time getting rid of. In such a case, save money in the child savings plans seems to be a better solution.
A children’s plan allows you to set aside a specific portion of your money for the betterment of your child’s future. The earlier you start investing in such a plan, the more you can accumulate a significant body of work to fund your child’s further education.
What is a children’s investment plan?
Children’s packages are life insurance appropriate policies to ensure that your children are always taken care of. Being a parent, raising your children properly and providing them with a good education are some of the most important parts of your life.
Children’s plans can make it easier for your child to make your dreams come true, including the dream of sending them to a prestigious college. There are several savings plans for children available to support your child’s academic dreams.
Why do you need to have a children’s investment plan?
The death of a parent can be the most devastating event that can occur in a child’s life, which can turn their life upside down. This unfortunate event can even lead to consequences like dropping out of education which will harm your child’s future.
Amidst the unpredictability of life, you might not know when death will knock on your door. If you want to make sure your child’s future is safe after you die, invest in a children’s insurance plan as soon as possible.
In the event of an unfortunate death, your child will never have to pay premiums and will receive a lump sum at maturity.
Make your child’s dreams come true
You cannot plan for your child’s career even before they are born. But you can save for the future by investing in savings plans now who pay appropriate fees when your child is ready to make the most of it.
Depending on your child’s interests and skills, he or she has the option of taking any course of their choice. With the money provided by the children’s education insurance policy, you can help your child achieve their dreams and career goals.
If you start investing wisely now, the corpus accumulated at maturity will be sufficient to pay for the child’s school fees. You can get children’s education plans that will make the child’s dreams come true.
By registering for a child savings plan, you can easily save a portion of your income each month and separate it from your daily expenses. This will encourage you to develop a savings model that will allow you to easily accumulate a financial body for the betterment of your child.
Once you have accumulated a significant amount of money, you can use it to make sure your child’s future is as secure as possible. With a kid plan, it’s easier for you to make sure that your money is going to be put to good use.
In addition, since you have to commit to regular contributions, you are locked into the contract unless you want to pay a substantial surrender fee and lose all the benefits promised by the insurance company, which is not. recommended.
One of the most important benefits of a children’s investment plan is that it also gives you various tax benefits. In accordance with Section 80C of the Income Tax Act of India, premiums paid for a children’s plan are eligible for tax deductions of up to Rs. 1.5 Lakhs in a fiscal year.
In addition, the maturity product promised with the policy is also exempt from any type of tax in accordance with Section 10 (10D) of the Income Tax Act. This saves you a significant amount of money at every step of your investment.
Student loans issued by the bank carry high interest rates, so a person with such debt will have a harder time starting their career as they will have to pay off the debt as soon as possible. Many students fall into this debt trap and find it very difficult to cope with it.
Student loans force people to do extra work as a condition of getting an education, and this work makes it harder for them to experiment. In addition, those with student loans often have to delay saving and investing.
On the other hand, if you start planning for your child’s education by investing in the best savings plan for child, you can eliminate the need for debt at a later stage. This ensures that your child is debt free early in their career and can make independent choices.
How do you start investing in a children’s plan?
All NBFCs and banks offer educational plans, but only some offer the right policy. It is important to choose a basic plan with sufficient coverage to invest in higher education. If you want to be pragmatic in the face of unforeseen circumstances, you must purchase the plan with additional endorsements. This will give your child guaranteed financial support and help them achieve their dreams.
There is no doubt that college is expensive. Even with financial assistance, you might have to pay thousands of rupees each year. With student loans, the amount you owe can reach even more impressive amounts. The good news is that there are ways to help pay for your education without taking out a loan. By starting a children’s investment plan early, you can save money to cover your child’s education costs while minimizing your tax burden.