It is essential for you as a parent to determine the amount of corpus that might be required based on your child’s interest as well as potential, your income and the plans that you might have for your child. Following are five education savings plans that can help to fund your child’s education:
- Single-Premium Child Plan A single premium child plan is a one-time investment plan that is ideal for parents who would like to invest a fixed lump sum amount altogether. During the policy term, you don’t have to pay any amount except the first premium. The single premium child plan is a hassle-free option with no requirement of tracking and playing timely EMIs.
- Regular Premium Child Plan A regular premium child plan is a practical education plan that offers flexibility in paying the premium. This plan is ideal for parents who would like to make regular payments such as monthly, quarterly, or yearly.
- Child ULIP Plan ULIP stands for a unit-linked insurance plan. A ULIP refers to an integrated plan where the investor gets both the investment and insurance under one umbrella. It gives a higher insurance coverage, and on the untimely demise of any one of the parents, the beneficiary, i.e. the child is liable to receive the sum assured, and the future premiums are waived off.
- Child Endowment Plan A child endowment plan is often known as a traditional savings plan that comes with the benefit of the investment. As part of the plan, a portion of your premium amount is invested in debt instruments. If you are a risk-averse parent, this is a safe and secure education savings plan for your child.
- Sukanya Samriddhi Account Well, this one is only for a girl child. You get an 8.5% interest rate and returns that are entirely tax-free. You can also claim deductions up to Rs.1.5 lakh under Sec 80C for deposits made in the Sukanya Samriddhi Account. The plan is ideal for parents who are risk-averse and want to save some extra money on the side apart from the investment plans.
Learn more about our online life insurance plans.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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