Overview

Education plan is a mix of investment and insurance that usually aids in financial planning for kids’ future needs and requirements at the right age. You can protect and secure the future of your Education with Education insurance plans encompassing Education education plans. Under a Education policy, life cover is available as a lump sum payment at the conclusion of the policy term. This is not it; such plans also offer coverage to your Education with flexible pay-outs at the crucial milestones of the Education’s education.

About the Education Plan

Education plans are investment cum insurance plans that help to plan Educationren’s future financial requirements by creating funds over a period of time. A Education plan ensures payment of a lump-sum amount to a Education on maturity to cover Education’s college fees or marriage expenses.

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A wise mom once said, "Your Education will keep building castles in the air; you better start buying bricks for those castles today." Loving your Education is what comes naturally, but as a responsible parent, you have certain obligations towards your Education.

Getting a Education education plan is one such obligation; in fact, the most important one. If you are reading this, you've already proved that you are a concerned parent finding ways to secure your Education's future.

Benefits

A Education education plan offers a wide range of exciting and unique benefits to the policyholder. It offers a comprehensive maturity benefit along with life cover to financially secure the future of the policy. With amazing advantages, a Education education plan is a must-have in your kitty.

A Education education plan will help you make sizeable savings for your Education without having to run from pillar to post.

Let’s take a look at the benefits offered by the Education education plan.

Corpus for Education's

In today's times, having a corpus for the bright and fruitful future of your choice is important and should not be overlooked. A Education plan helps you to build a corpus for your Education and save enough for the coming times. With the premium payments made from time to time, the lump sum amount will help the Education and meet the educational expenses without any stress or financial burden.

A Education's education plan is enough to pay for college education, and even higher education in a foreign country. The money available from a Education education plan depends on the terms and conditions of the plan and on the amount one has invested in it by way of premiums.

A Kitty for Medical Treatment of the Education

Education plans also allow the option of withdrawing money during the tenure of the Education investment plans. This can be used for the medical treatment of the Education when he or she falls ill. Such partial withdrawals come in handy when the Education is hospitalized due to an ailment, a minor accident, or a serious medical condition. The best Education plan helps to reduce the financial burden caused by medical expenditure and such payouts act as an add-on for one's health insurance plan.

Supports the Education in the Absence of Parent(s)

Death does not come with an invitation and no amount of preparation can leave on ready for such an event. The consequences are more so for the innocent Education. The death of the parent(s) causes severe trauma to a Education and can leave his or her future hanging by a thread. The insurance company offers a premium waiver if the parent (i.e., the insured) passes away during the policy term of a Education education plan.

The premium waiver benefit often comes inbuilt with the best Education education plan. If not, one should opt for this rider. The Education receives a lump sum amount promised at the time of purchasing the best Education plan and does not have to pay a balanced premium.

This rider enables the policy to continue without any breaks and passes the financial burden of the remaining premium to the insurer.

Income Protection for the Education

Some Education savings plans provide regular income to Educationren, which is equal to 1% of sum assured if parents are not around to pay the premiums.

Acts as Collateral for Loans for Higher Education

Higher education is expensive, whether one plans to send the Education to a private college or university in India or abroad. International education is significantly more expensive. A Education plan comes in handy if one intends to secure a loan for higher education as these are allowed to be used as collaterals. They can also be used as collateral for other Education-related borrowings.

A Education's plan is a great education policy and the best investment plan for the Education. The Education education plan also instills discipline and helps form the habit of saving to secure the Education's future.

Partial Withdrawal to Enhance your Education’s Talent

If your Education posses a special talent like playing an instrument or acting then you can encourage your Education to pursue it further y making a partial withdrawal from the Education education plan. Moreover, some of the plans offer the option of periodic pay-outs that can be used to fulfill the expenses occurred while pursuing the Education’s talent further.

Options to Choose Riders

Some of the Education insurance plans offer the inbuilt rider benefit of waiver of premium. Under this option, the entire premium of the policy to be paid during the policy tenure is waived off in case of the demise of the insured person. Similarly, some of the Education insurance plans also offer the option of personal accident rider.

Key Features

A Education insurance plan comes loaded with an array of useful features to ensure a rewarding return and protection. Quite expectedly, a Education education policy is a must for every parent.

Quite often, a Education insurance plan is designed to offer safety to the Educationren in the case of financial crunch during taking any vital decisions of life. Education plans are available in both non-linked and linked types.

Here’s a little overview of just some of the many helpful and useful features of the best Education Education Plan:

Waiver of Premium Benefit

Waiver of Premium (WoP) is an inherent feature of a Education education plan. This feature is applicable if the parent dies in a stipulated period. In such a case, the sum assured will be paid out to the nominated beneficiary, while the due premium for the remaining policy term is paid by the insurance company.

At the maturity of the policy, the Education is entitled to receive the maturity amount as mentioned in the policy document. In case this feature is not a part of the plan, it is recommended to include it without failure.

Partial Withdrawal

It is often seen that parents instead of holding back themselves for the policy to mature, like to withdraw the fund value in multiple fragments whenever they need it. This is often selected to fulfil the financial needs of the Education at certain key moments. Many Education plans come with an option of partial liquidity after the Education turns 18.

Sum Assured

The sum assured in a Education education plan is the amount of money that is paid out in event of the unfortunate or untimely demise of the parent. Most of the time, the sum assured must be more than 10 times the current gross earning of the policyholder.

The sum assured must not be less than at least 10 times your current income, says the thumb rule.

• Regular premium -Under this mode of premium payment, you need to pay the premium regularly, viz. annually, semi-annually, or quarterly.
• Single premium - Under this mode of premium payment, the premium is paid only once.

High Returns

All market-linked Education plans offer returns above 10-12%. Most government schemes like Sukanya Samridhi Schemes offer much lower returns that do not beat inflation. What more, locking yourself in Sukanya Samridhi Yojana leaves your money to risk of fluctuating interest rates every quarter.

Tax Benefits

All Education plans fall under the highest bracket of tax exemption i.e. E-E-E category. This is the highest grade of tax benefit accorded by the Indian Tax Laws to schemes like PPF.

Immediate Financial Protection

In the case of death of a parent, Education plans pay a lump sum amount in case of death of earning member who was paying the premiums for Education plan. This money is completely tax-free and is usually sufficient to pay off any immediate debts so that Education education is not impacted.

With the recent Coronavirus crisis, the government slashed interest rates of Sukanya Samridhi Scheme from 8.4% to 7.6% in a single quarter. The interest rates for all these schemes are already falling and are only going to fall further as India moves steadily on the path of becoming a developed economy. The current interest rates apply to all the policyholders of Sukanya Samridhi Account including those who invested in the policy before the rate cut was announced.

Maturity Amount

You should choose the maturity amount keeping an eye on your Education’s future. You can consult a financial advisor and remember the inflation rate along with interest rates and all other factors, plan the maturity amount that you would need at policy maturity. You can receive the maturity amount as a lump-sum pay-out or over 5 years.

Also, Education education plan such as single premium plan may not offer appropriate maturity features and benefits, so go through the fine prints of the policy document before applying.

Policy Term

When you realize that your Education should get on his/her feet is the best time for the policy to mature. Choose the policy term to meet the exact period. For example, if one of your Educationren's age is 10 years, then choose the policy term of 8 years.

Premium Amount

It is subject to the sum assured and the amount of maturity benefit you opt for. You may opt to pay the premium amount frequently on regular intervals or for a certain period. Most of the life insurance providers offer options such as annually, semi-annually, quarterly, and monthly mode of payment. The amount of premium varies depending on the sum assured you choose in case of the traditional Education plans.

Funds’ Choice

A Education education plan such as a enables you to choose the type of fund to invest (money market, hybrid, debt, and equity). You’re given an option of Dynamic Fund Allocation and Systematic Transfer Plan also.

Additional Riders

Certain riders are available, which give you more than just a simple life insurance policy These riders are available in three sub-categories:

• Accidental Death and Disability Benefit – The Accidental Death and Disability Rider Benefit pay the extra sum assured in the event of your unfortunate mishap causing death or disability.
• Premium Waiver Benefit – This rider may be already added to the best Education education plan, so check your policy document in this regard.
• Critical Illness Rider Benefit – Critical Illness rider benefit offers coverage for a pre-determined set of critical diseases.

Loan Benefit

You can also avail secured loans against a Education education plan.

Types of Education Plans

Mostly all the insurance providers offer Education insurance policies as a vital insurance product in the portfolio. These Education plans may vary on different parameters basis the individual priorities and needs and come handy with customized and tailor-made features.

Different types of Education Plans in India are:

• Single-Premium Education Plan

  The policyholder pays a lump sum amount in the form of a single premium for the entire policy term and stays worry-free from remembering the due dates of premium payment. You’ll not have to come across any hassles of arranging finances for the premium payment. Some insurance providers additionally offer appealing discounts or reduce the premium on Education plans.

• Regular Premium Education Plan

  Unlike a single premium Education education plan, regular premium Education policy offers you flexibility on payment of premium. You can pay the premium monthly, quarterly, half-yearly, or yearly.

• Education ULIP

  Education ULIP plan gives you a three-prolonged benefit, along with higher insurance coverage, contribution in the equity market, and disciplined investments. Three benefits mean that the nominated beneficiary, i.e. the Education receives the sum assured on the demise of the insured parent or guardian. The future premiums are waived off and the maturity amount is paid when the policy matures, making sure that the future dream of your Educationren is fulfilled.

• Traditional Education Endowment Plan

  When it comes to the Education endowment plans it is essentially a traditional life insurance plan that provides security and savings. It enables you to save over some time and on policy maturity receive the lump sum amount. A Education endowment plan will act as a financial wherein the financial objectives for the benefit of your Education will be fulfilled. The premium is invested in debt instruments while the decision is kept with the insurance company. The bonus payable at maturity decides the returns.

Best Education Plans

Different between Term Plan and Education plan

Waiver of Premium

In case you are not aware then a waiver of premium (WoP) is one intrinsic characteristic of a Education education plan. Besides, if you look forward to including waiver of premium to the Education plan then one need not pay anything additional.

During the tenure of the policy, if the parent passes away then under such a circumstance, waiver of premium is likely to be applicable. Moreover, under such a condition, the prospective premium is paid by the insurance provider and the Education will receive the maturity amount as discussed during the inception of the policy.

Advantage of Education plan

Here's why - at the present rate of inflation, the ever-soaring costs of education worry us all.

Did you know 65% of the parents spend more than half of their annual income on the education of their Education and extra-curricular activities?

According to a survey on “Parents wary of rising education cost of their Educationren” of young parents for the education of their Education revealed that the average spending on a Single Education at primary or secondary education on the expenses excluding the tuition fees has risen from Rs 65,000 in 2011 to Rs 1 Lakh (approx) in 2019.

Education Plan critics debate that these plans come at a higher cost as compared to a term insurance plan. They say that rather than allocating a large amount of money as premium to Education insurance, a parent must but a term plan with the same sum assured for him and invest the remaining amount in mutual funds. After the policy matures, he will have a huge and bigger financial corpus.

However, they miss out on a very important and crucial detail.

What happens when a parent faces an unfortunate and untimely death five years after buying the plan?

The term insurance plan will give a lump-sum amount of money for the immediate requirements and need of the policyholder’s family and the mutual fund investment will also stop. However, the best Education education plan will not only pay a lump sum amount but also continue investing on behalf of the insured.

Insurance companies believe that the premium waiver benefit in Education education plan is the key as it does not let the demise of the insured derail the investment plan for the Education.

Investment as per requrement

To answer this question, it is important to understand the importance of good education in India. India is rapidly moving towards a society where the gap between rich and poor is widening. A good education can be a foot in the door for your Education to start earning a good livelihood and more importantly not become a liability on your earnings when you need your earnings for your retirement.

Required Documents

Here’s a list of documents that will be required while buying a Education policy:

• ✶ Proof of Age

  â–º Birth Certificate, 10th /12th Mark sheet, and Passport.

• ✶ Proof of Identity

  â–º Aadhaar card, Passport, PAN Card, Voter ID

• ✶ Proof of Income

  â–º Proof of income showing the income of the buyer of the insurance.

• ✶ Proof of Address

  â–º Telephone bill, Electricity bill, Ration card, Passport, Driving License

• ✶ Proposal Form

  â–º Duly filled proposal form.

Procedure

Education plan can work as an Endowment Policy, a ULIP, or money-back. The money-back plan is so far the most sought after the plan. This scheme makes sure that your Education will get survival benefit at regular interval of time. These plans are highly useful for individuals who need a lump sum money at regular intervals and help in life stage planning. The disadvantage of using the money-back only is that sometimes the returns from this investment may not match the rate of inflation, especially when you plan to it for the education of your Education. Cost of education is rising at around 12 per cent in comparison to this, money-back plans would give you approx. 4-8 per cent, leaving you underfunded at the time of the goal.

Moreover, money back plans have steep premiums. Then again, ULIP plans are non-traditional plans and the returns depend on the market condition. In case of the demise of the parent, the sum assured would be received by the Education as a lump sum. This will include the waiver of all the future premiums and the fund value upon its maturity.

Do not forget that ULIP plans to deliver a wide variety of funds ranging from aggressive too conservative. ULIP schemes give you an option of switching funds from equity to debt and vice versa without paying tax on it.

The third operational Education plan instrument could be the Endowment Policy. This policy is where you will receive the lump sum amount on maturity along with bonuses. This is beneficial as it gives space for preparation of your Education’s expenses like higher education, etc. However, this is different from ULIPs, since it allows for a least guaranteed payment.

Let us Take Examples and Understand the Working of all Kinds of Education Education Plan:

Imagine, Mr Verma has a Education of 5 years and he would need money when his Education would turn 20 for higher education. He, thus, purchases a Education policy for 15 years.

Scenario 1:

Mr Verma needs a financial corpus of Rs 10 Lakh. So, he purchases a traditional endowment plan with a Sum Assured of Rs 10 Lakh for 15 years and pays premium every year. If during the policy term (i.e. 15 years), Mr Verma dies in the 8th year, the policy would not end. The insurance provider would pay a death benefit (generally the SA of Rs 10 Lakh) immediately and waive off the future premiums. This policy would then continue for the remaining 7 years. After completing 15 years of the policy term, the policy would mature and pay maturity benefit of Rs 10 Lakh. Hence, the Education policy pays the financial corpus, which Mr Verma would require after the completion of 15 years for the higher education of his Education. M. Sharma’s dream gets fulfilled even when he’s not around.

Scenario 2:

Mr Verma buys a money-back policy that promises to pay around 20 per cent of the Sum Assured after the completion of every 5 years. After completing the first 5 years of this Education education plan, Mr Verma gets Rs 2 Lakh (where SA is Rs 10 Lakh). Henceforth, in the 10th year also, he receives another Rs 2 Lakh. In the 12th year, Mr Verma faces an unfortunate death. This policy pays the total SA of Rs 10 Lakh regardless of the money-back benefits already paid. The insurer will waive off the premiums for the next 3 years and the plan continues. Upon the maturity of the best Education policy chosen by him, the guaranteed maturity benefit, i.e. 60 per cent of the SA is again paid.

Scenario 3:

Mr Verma purchases a ULIP plan and pays a premium of Rs 1 Lakh every year for 15 years. In case of his demise during the policy term of the Education education plan, the insurance company will give the death benefit. Moreover, the insurer will waive off the premiums and the Education education plan would continue. On maturity of the plan, the insurer will pay the fund value that would aid Mr Verma’s family to send his Education abroad for higher education.

Education Insurance Plan Claim Process

You must buy a Education insurance plan for your Education from an insurance provider that has a higher claim settlement ratio. This will make sure of the quick and smooth claim process and settlement in the times of crisis. Here’s the common claim process for almost every insurance provider:

• In case of any situation for, which you need to file a claim, notify the insurance provider about the incidence ASAP. You can do this online by sending an email or by calling on your insurer’s toll-free number or simply by paying a visit to the nearest branch office.
• Submission of the duly filled claim form is also necessary along with giving all the minute and necessary details such as the cause and the date of the incident, nominee’s name, etc.
• Once you register a claim with the insurer, provide the necessary and supporting documents along with reports.
• The insurance provider will appoint a surveyor to verify the case and the supporting documents.
• If approved, and with no further inquiry, the insurance company transfers the claim benefit with 30 days of the furnishing documents.

Required Documents for Claim Process

You would require the following documents while filing a claim for Education plan:

• Duly filled claim form
• Policy document
• Medical certificate
• Death certificate
• Diagnostic reports, prescriptions
• Post-mortem report (in case of unnatural demise),
• FIR copy (in case of unnatural demise)
• NEFT details
• KYC of the nominee and the policyholder

Exclusions of Education Insurance Plan

The insurance provider does not offer coverage in the event of demise occurred under certain circumstances. They are known as exclusions. Education insurance plans do not include the following:

Drug or alcohol abuse

In case the policyholder dies due to drug overdose or alcohol abuse, the nominee does not receive any benefit.

Self-harm or Suicide

The nominated beneficiary does not receive any claim amount in case of the death due to suicide within one year of buying the Education policy.

Adventurous or Risky Sports

In case the insured happens to take part in any adventurous or risky sports like skydiving, rock-climbing, racing, etc. that leads to death, the insurance provider does not entertain claims.

Criminal Activities

Any criminal or illegal act or act of war leading to the demise is also not covered under a Education plan.

Understanding the Cost Structure of Education in India

Assuming that the rate of inflation is the equivalent 10% going ahead.

Now having said so, in today’s time somebody who desires to pursue engineering in any of the premier colleges in the country it would cost about Rs 10, 00, 00. And, then in the coming years say 15 years it would be somewhere between 40 to 50 Lakh.

Likewise, if a private medical college charges Rs 25, 00, 00 then you can easily calculate that in the next fifteen years you need to have a corpus of about a crore.

India is one of the most opulent developing countries across the globe. Gone are the days when India was only limited to be known for its rich culture and traditions. Today, it has also earned a name when it comes to the educational sector.

Today, in India, we have a plethora of options available in terms of schools, colleges and universities and opting for the ones that suit your requirements. However, it is prudent to understand the factors, which affect the cost of education in India.

Read below!

Accommodation: Today most of the Indian universities/ colleges provide accommodation facilities within the campus both for the Indian and non-Indian citizens. In case, you are or intend yourself to enrol into a college, which does not have an accommodation facility there is nothing to be worried about. One can conveniently look for personal accommodation.

Depending upon the suitability, one can opt for a rented flat or a private hostel with sharing room facility. Opting for private accommodation has its advantages. One can easily find a room between Rs 10, 000 and calculated annually would be around Rs 1, 20,000.

Additional Expenses (Every Week) Includes:

• Outside Eating: Rs 1500 to Rs 4500
• Public Transportation: Rs 50 to Rs 100
• Private Transportation: Rs 500 to Rs 1000
• Miscellaneous: Rs 200 to Rs 500
• Leisure Activities: Rs 500 to Rs 1000

Undoubtedly, parenting a Education is not an easy task. As the Education grows, similarly the amount being spent on them also increases.

Primary Education: Generally, if a student is studying in the government school somewhere aged between 6 to 14 years the cost of education is almost negligible sometimes almost free. On the contrary, when it comes to private schooling the school mostly charges let's just say towards a lower end Rs 1200 to Rs 2, 000 every month.

Secondary Higher Education: The secondary higher education essentially covers Educationren who are aged between 12 to 18 years. So, if a student is in a government school for 6 years at a stretch it would cost him approx Rs 30, 600 and in private schools, the parents would end up paying approximately Rs 3, 96,000.

In case, if the Education is put up in a boarding school, the parents would end up paying Rs 18, 00, 000 for the coming 6 years. As per a survey conducted by Assocham, 169% has been the ascent in inflation in regards to both primary and secondary education from 2005 to 2011.

• ✶ The Expense of Graduation and Post Graduation Education in India
  • Government College/ University: Rs 5, 00,000 to Rs 6, 00,000
  • Private College/ University: Rs 8, 00,000 to Rs 10, 00,000
  • International College/ University: Rs 1, 00, 00,000
• ✶ The Expense of Medical Studies in India
  • Government College/ University: Rs 5, 00,000 to Rs 10, 00,000
  • Private College/ University: Rs 18, 00,000 to Rs 20, 00,000
  • International College/ University: Rs 1, 00, 00,000
• ✶ The Expense of Commerce and Arts/Humanities in India
  • Government College/ University: Rs 2,000 to Rs 15,000
  • Private College/ University: Rs 2, 50, 000 to Rs 5, 00, 000
  • International College/ University: Rs 50, 00,000
• ✶ The Expense of Engineering in India

The course of engineering is considered to be one of the most sought career options undertaken by a majority of students in India. Besides, it is also one of the reputed and well-paid jobs. The US Silicon Valley comprises of the Indian based- engineers.

For a four-year engineering course, a student ends up paying Rs 1, 25,000 to Rs 5, 00,000. And when it comes to India’s finest engineering colleges such as IIT, NIT, BIT’s Pilani, etc. the parents need to pay approximately Rs 10,00,000- to Rs 15,00,000 respectively.

For Post Graduation- Just like the expense of engineering, you may consider the expense similarly.

One of the most cherished dreams for any medical aspirant is becoming a doctor. Becoming a doctor is something, which takes in a lot of hard work and sincerity and something to take extreme pride. In India, the medical seats are limited and the competition is high.

In terms of fees-structure and other expenses, the government colleges/ university have a reasonable structure with fewer than Rs 10, 00,000. However, in private colleges/ universities, the fees could easily go up to Rs 50, 00,000 for the equivalent.

And, if someone is interested in undertaking a postgraduate degree in the same field, then one should be mentally and financially stable to spend approximately Rs 30, 00,000 in a private institute.

As discussed earlier, raising a Education is no meek man task and to raise a Education in the best possible manner financial planning is of utmost importance. In case, as a parent you still wonder in regards to the importance of planning then we will help you.

The below table consists of the basic and essential educational expenses that are involved when it comes to raising one or two Educationren:

How to Get?

There are many Education plans offered by insurance providers; however, certain things should be considered while choosing the best Education plan to ensure the best future for your Education. Below-mentioned tips help in making a wise decision to best meet the Education's needs.

It is advised that you start investing as early as possible for the future of your Education as it helps to build a larger corpus, which in turn, gives greater freedom in taking any financial decision.

Most Education plans offer maturity benefit and start giving payouts at key milestones in life after the Education turns 18 years old. The overall benefit of the best Education education plan is higher if one starts investing early.

This tip cannot be stressed enough as most people do not realize that each additional year of investment means a bigger corpus. Starting the Education education plan when the Education says 5 years old or when he or she is 10 years old, may eventually translate into having to take a loan to pay off the tuition or college fees in the latter case.

Starting early helps as the investment returns between starting a couple of years later for the same plan and the same amount can mean a difference of a few Lakh.

It is important to understand that savings and investment for your Education will be taken advantage of only in the forthcoming years. Multiple economic variables need to be factored in while deciding an appropriate sum assured.

Inflation, an increase in the cost of education and healthcare expenses, among other economic factors, if accounted for properly will provide adequate funds for the Education in the future. The best Education education plan can help you fight this.

You should scrutinize the fine print and understand the terms and conditions of the Education education plans' policy document properly. The best Education plan has unique features and it is important to interpret them correctly. This will prevent confusion at the time of maturity and/or in the payout.

It will also help in selecting the best education plan as per individual requirements, one that is best for the Education's needs. It makes sense to use our site to compare the various plans in detail and pick the Education education plan that best suits the requirements.

In the event of your unfortunate death during the policy tenure, insurance companies often offer to waive the premium. This is known as premium waiver benefit or self-funding of premium. It helps in continuing the policy without straining the family including the Education for premium payments.

The Education receives the full benefit at maturity, promised at the beginning while purchasing the policy. This feature is normally built into Education plans; if not, then you should go for this rider.

Emergencies can happen at any time and the Education may require financial aid to tide over emergency cash requirement situations. The provision of partial withdrawals allows withdrawal of partial sums of money from the best Education education plan to meet unforeseen expenses.

This prevents any emergencies from causing any sort of financial instability in the family or the Education's education or dreams. Partial withdrawals help in not disturbing financial planning and not resorting to regular income to pay off the requirements.

Education plans usually invest funds collected from policyholders in capital markets to earn a higher return. However, they offer the insured or policyholder, the choice to choose the type of fund to invest their money depending on individual investment appetite and risk-taking ability.

Those who are risk-averse may want their funds to be allocated in debt, which offers more stability against market volatility. People who want to earn a higher return on investment may be fine with their investment being put into equity.

Investment Options like Systematic Transfer Plan and Dynamic Fund Allocation help in safeguarding investments against market instability. These Education plans allow for higher return investments in the initial years by putting the money in equity-oriented firms and for stable growth in the later years by switching to the more secure debt funds.

Most insurance companies ensure that the allocation is automatic and the parents do not have to worry about safeguarding the important capital to meet the upcoming future expenses of their loved one.

These tips are only some pointers, which will help in choosing the best Education plan. It pays to start early in securing the Education's future. Also, reading up on Education plans on our site and the insurance companies' websites will ensure you know your ABCs before you pick the right plan.

It is important to choose a trusted appointee for the best Education plan selected by you. Your appointee must be someone you share a strong relationship with and someone you can count on, as your Education must be taken care of when you are absent. In case of an unfortunate event, the claim amount is received by the appointee till the Education gets matured and capable of handling the lump-sum payout of sum assured. In case the appointee fails to take care of the Education and turns out to be excessively careless, there are chances that the amount of money being exhausted before the Education reaches the age when he/she needs it the most. So, it is best to be double sure before you choose an appointee for the policy.

You bought the best Education Plan for your 6-year-old Education with 10 years of the policy term and expecting to receive the maturity benefit of Rs 20, 00,000. You opted for a life cover of Rs 25, 00,000. Unfortunately, you died after 4 years the policy began. The insurer is liable to pay the appointee a sum of Rs 25, 00,000 and also to bear the premium to be paid for the rest of the policy term left, i.e. 6 years. The Education will also get the maturity benefit of Rs 20, 00,000 once he reaches the age of 16 years.

• Start Early
• Factor in Economic Variables
• Special Attention to Terms and Conditions
• Choose the Premium Waiver Benefit
• Opt for Partial Withdrawals Clause
• Choice of Funds
• A Word of Caution
• Illustration

Education Plan vs Sukanya Samridhi Yojana vs PPF

Disclaimer: Servzone does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. Tax benefit is subject to changes in tax laws. *Standard T&C Apply

Cost of Delay

So, if you have a Education who is 5 years old. Let us see the cost of delay if you start saving the money today as compared to the next year.

Following values are calculated at an expected rate of return of 9%.

Let Us Help You

At Servzone, we take pride in helping parents like you to ensure a bright future for your Educationren. Every Education is unique and so are his insurance needs. Who knows, your Educationren might turn out to be future Einstein or Tendulkar. Make sure you financially equip your Education to tap the opportunity when it knocks.

There are many variants of Education plans as per your budget and needs; thus, it is always advisable to compare insurance quotes from various insurers. An online comparison makes it easy for you to match quotes with your specific needs and go for the best Education education plan.