Education is the only way to ensure your child a bright future. Quality education costs money .This is where you need to invest in child education plans such as children's endowment plan or a child Ulip plan.
You also get tax benefits when you invest in child education plans.
Planning for your child's education begins when your child is very young. This gives you the best chance to collect money for his/her marriage or education.
You need to provide quality education for your child. Education being expensive, children education planning is a must.
Marriage today costs lakhs of rupees. Children Education Planning, helps you to save for this expense.
You must avail waiver of premium rider to ensure your child gets a good education, even if you are not around.
You get tax deductions on the premium you pay for the child plan. The amount you get on maturity of the plan is tax free.
This is a twin benefit plan giving you :
Insurance + Savings
You (The parent) of the child are the proposer of the child endowment plan. The proposer is also the life assured in the policy. The policy is taken on the life of the proposer (parent) in a child endowment plan. The proposer pays the premiums of the child endowment policy.
If the proposer/parent dies the child gets the money for his education. Higher is the premium, higher is the sum assured you can take in a child endowment plan. When the child endowment plan matures, you get a lump sum (Sum assured + bonus) which you use for your children's education.
The child endowment policy matures when your child is 18-21 years of age.
The waiver of premium is a rider benefit in a child endowment plan. A rider is an additional benefit you obtain by paying an additional/higher premium.
You pay the premiums in the child endowment plan until the maturity of the plan or for a fixed period. When the child endowment plan matures you get.
Sum assured + bonus
If you/proposer of the plan, die before the maturity of the plan, your child (or the guardian) immediately gets the sum assured. All future premium payments are immediately waived off (No further premium payments need to be made).
The Insurer takes care of the premium payments (Pays them on your behalf).On maturity of the plan (When your child is 18-21 years) a second payout is made. Your child gets the maturity amount. This is a lump sum paid on the maturity of the policy.
Payment made on the death of the proposer
Payment made on the maturity of the plan.
When you avail a child endowment plan make sure that you take a waiver of premium rider in your plan. The money you get from this plan can not only help you to meet your children's education expenses, but also help in their marriage.
Your child can get the money not only on the death of the proposer, but also on the disability (if the proposer is severely disabled and not able to work).
You can avail a child endowment policy when your child is as old as 1 day. The earlier you avail the plan greater are its benefits and earlier would be the maturity of the plan.
So make sure you avail a child endowment plan with a waiver of premium rider for your child.
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