Children education plans enable parents to save money consistently so that their children’s future goals can be realized. Even if the parents aren’t present due to unforeseen circumstances, it helps ensure a safe road for the youngster to realize their aspirations.
The most crucial and costly aspect of your child’s future is education, and as parents, you will never want your child to give up on your goals just because of a lack of resources. You may find it simpler if you have kid insurance or a child education plan. It serves as your child’s protection, savings, and investment strategy.
In light of the rising expense of tuition, it is imperative that you set money aside for your child’s education. Continue reading to find out why it is so important to start saving for a children education plans early on and to invest in a children education plans.
- The cost of education is rising daily.
The expense of education is more than ever for top-notch private education due to a variety of variables, including inflation. More money than ever is needed from parents who want to guarantee their kids a top-notch education, which frequently places a substantial financial burden on the family’s resources. Making investments in a child’s education early on can help avoid issues like these later on when the child is truly in need of money.
Profit handsomely on a modest investment.
When a child becomes 17 and requires a sizable corpus to finish school, he will have access to Rs. 2,000,000. A children education plans premiums can be as little as Rs. 20,000 per year or even Rs. 2,000 per month. To assist the youngster in accomplishing significant milestones, these can be provided all at once or on a monthly basis. The benefits of investing in a child’s education are immeasurable.
Release the child from long-term financial traps created by student debts.
Bank education loans typically have very high-interest rates that keep borrowers in debt for a very long period. This presents a significant obstacle and considerable downer for young professional who begins their career with a mound of debt that must be paid off as quickly as feasible. A professional with student debt is forced to pursue high-paying employment at any cost, disregarding the value of experimentation. Additionally, it hinders their capacity to begin investing or saving early in their careers.
Defending the child’s future: With a children education plans, it is feasible to picture a child having a successful future even if her parents are no longer there. By putting a kid education plan in place, she can pursue her aspirations without being concerned about the financial repercussions and never have to worry about their interfering with her studies.
Tax Benefits: According to Section(s) 80C, 80CCC(1), 80D, 10, and 10D, as may be relevant, premiums paid for a child education plan are typically eligible for tax benefits. Some tax benefits can be obtained in the form of exemptions upon payment of premiums, albeit these may alter.