Are you worried about your kid’s future? Do you doubt if you can manage their educational finances especially considering how expensive education has become nowadays? Well, it is a pretty common concern among new parents. It is only natural that parents would want the best for their kids in terms of their education quality. Education is also essential as it shapes their college and career opportunities as well. The best thing you can do right now is to buy an education insurance plan. To help you decide whether buying one is right for you or not, we have briefed you about the top reasons to buy a child education insurance plan in this article.
Top Reasons to Buy a Child Education Insurance Plan:
1.High Cost of Education:
It is challenging to meet the cost of education, which keeps rising by the day. There are many other expenses for your child besides the basic tuition fees—these range from excursion trips to various competitions. So every time your child presents a new need like this, you find yourself digging your pocket. Thus you end up paying for a lot of such miscellaneous expenses apart from the exorbitant school fees.
2. Covers College Expenses As Well:
College is a whole new ocean where your kid would be jumping after swimming in the small school river. And the expenses would also be likewise. Hence, taking insurance for your child’s education will be a boon for covering his/her school fees and the college fees that will be way more than the school fees depending on the stream your kid chooses. It also gives your kid a sense of freedom and confidence to choose their desired course rather than settling for something they do not like just because you cannot afford it.
3.Helps Avoid Loans:
Nothing is more of a headache than having to borrow an education loan, given its lengthy procedure. The next headache will be to repay it with interest which will be cumbersome for both you and your child since he/she would be bound to make a lot of sacrifices to pay back the loan with the added burden of interest. Taking education insurance would save you from the troubles of a loan. You will not have to depend on anyone for your child’s education in the long run. Moreover, it will also allow you to withdraw small amounts as and when you require money.
4. Protection against Contingencies:
The main benefit of buying such a plan is that it secures your child’s education against all sorts of unforeseen situations that may directly impact their life and education. In case of your death or critical illness, which threatens your earning, the insurance will play an essential role by not letting it affect your child’s education in any way. Such events will not spoil their future. Thus buying an insurance plan for education will provide your child a sense of security. They need not be worried about any mishaps in the future.
5. Encourages Saving and Investment:
Apart from benefiting your child, this plan will also benefit you by helping you inculcate the habit of saving all through your life. Moreover, you can look at it as a lifetime investment for your child. This investment will surely give you decent rewards as with any other investment. Also, it is a very considerate investment on the part of a parent. It will also encourage your child to save for his future needs once he starts earning. This way, everyone is benefited.
6. Helps Fulfill Your Child’s Dreams:
As mentioned earlier, buying an education insurance plan will encourage your child to choose their desired stream, thus allowing them to pursue their dreams and live the life they want. There is no better gift you can give your child than providing the opportunity to chase their goals by making financial arrangements like these in advance.
7. Tax Benefits:
Tax benefits are something we cannot afford to ignore. Everyone dreads payment of taxes, especially when it is deducted from the insurance amount. But this does not happen with an education insurance plan. Another attractive advantage of this particular insurance is that there are several tax benefits that you can avail of in the education insurance. Now that’s something you can’t overlook.
There are many more reasons why you should buy a child education insurance plan. And the benefits of doing so are multifold. It is never too late to consider buying one. If you buy one now, your children will thank you later.