Top reasons to buy a child education insurance plan
The primary distinctive feature of parenthood is the unconditional responsibilities that the parents have towards their children that is to protect the future of their child. While parenting comes with a prodigious amount of responsibility, a child education insurance plan not only provides safety net for funding the child’s education, but also a viable investment plan. Mentioned below are a few good reasons on why you should invest in a child educations insurance plan.
Providing an aid for your child’s education
To keep up with the increasing costs of education, it has become a mandate for parents to have requited money to back their child’s future with good education. The rising rate of education has been a primary concern for parents these days, hence one of the main reasons why one should invest in an education insurance plan is to create a pool of money from where money can be withdrawn to serve for your child’s education.
Collateral for loans
A good education insurance plan not only provides security for your child’s future education but an investment in this also serves as a collateral for loans. Loans can be availed against the investment made in the plan. For an individual, to gain some financial help against your investment is always a key concern while making an investment. A child education insurance plan provides as a collateral against loan in many cases.
What better way to save your money that provides additional benefits of investment and protection! A good education insurance plan inculcates the habit if saving a portion of their money made. While these small savings you make helps your money grow in future, it also provides for other investment benefits on it. The portion of money thus saved helps your child build his/her future.
Comprehensive tax benefits are available on the premium paid on such investments. Complying with the standards of the Income Tax Act, 1961 is one great deal of expectation fulfilled through these investments. Under the act, premium paid on such plans are exempted from taxation. Moreover, the proceeds from maturity are also exempted under section 10(10)(D). This makes it even more appealing for you to make an investment in child education insurance plan.
To provide a safety net for future contingencies
No parent would want their child to be dispossessed of any sort of privilege in their absence. The future is quite unforeseeable and unprecedented. With the wave of the pandemic, one thing has been made clear is to always have a safety net for such challenging times. Investment in a child education insurance plan will prove to be a safety net in these times where you wouldn’t be present to help aid them for their inconveniences.