Insurance isn’t always about making provisions for worst case scenarios. Insurance can also be a way to make financial provisions to take care of your goals as well as that of your family. As per the Economic Times 2006 projection, schooling costs will be up 200%, while MBBS, Engineering and MBA will be up 220%, 250% and 400% respectively by 2021. Cost for education in other fields too will go up. Since the child’s career is built on a solid educational foundation, it’s important to make provisions as early as possible keeping the inflation factor in mind.
Inflation is an unavoidable part of daily life. Apart from the everyday expenses, cost of unavoidable services such as health care and education too are on the rise. To lead a comfortable life, you need to make provisions to handle these expenses without them eating into your savings.
Educating a child is a major expense. Good schools command higher fees. The costs only go up when the child goes in for higher education. That amount almost triples if the child decides to pursue higher education abroad.
Child insurance plans cover a child’s education. These are long term plans that offer both the benefits of insurance and investment. These policies can be bought when the child is as young as 14 days. Such policies usually mature when the child becomes an adult; however there are policies where you can make periodic withdrawals.
Educational plans are a part of the Child Insurance plans and along with education, you can also make provisions for the child’s marriage or keep aside an amount that you can bequeath to the child in the future.
Other than Child insurance, there are a few other ways in which you can finance your child’s education.
As you can see, the financial plan for your child’s future is quite complex, yet it is not impossible to create one that will take care of your child’s requirements. Sit down with a financial advisor and plan out accordingly. Don’t forget that your income too will rise in years to come. With the right plan, you can be rest assured that at the time of requirement you won’t have to dig into your assets to pay for it.
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