current time High school fees, uniforms and expensive books are putting most of the parents in trouble. The increase in school fees every year is increasing the financial burden. Higher education fees are creating even more difficulties. Many parents are facing difficulties due to increasing fees for college and technical education. In such a situation, if you also want to provide better education to your child, then you will have to prepare for it in time. You have to invest in an investment medium that gives better returns in the long run. We are telling you three investment plans to meet the expenses of children’s education. You can invest in these as per your need and savings.
1. Child ULIP
To meet the education expenses of your children, you can start investing in Child ULIP. If we talk about the benefits of this scheme, it works to give you disciplined investment, high insurance coverage and equity market benefits. Child Education Plan (ULIP) is payable after the child completes 18 years of age. Additionally, the sum assured is paid to the child on the death of the parent or his legal guardian.
2. Endowment Plan
Under these plans, stable returns are provided in the form of bonuses on the sum assured. This type of plan offers guaranteed returns as well as life insurance coverage. These plans usually make four payments equal to 25% of the sum assured along with applicable bonuses after the child turns 18. Like endowment plans, these plans usually come with regular returns over a period of time. It is often recommended as a great option for a longer term, such as more than 10 years.
3. Sukanya Samriddhi Yojana
You can invest in this scheme by opening an account in the name of your daughter below 10 years of age. An account can be opened in the name of a girl with Rs 250. You can get tax exemption on maximum investment of Rs 1.5 lakh in a financial year. Currently, this scheme is offering interest at the rate of 8.50%.
4. Investment through SIP
By investing in mutual funds through SIP, you can easily deposit a large amount for your child’s education. You can get great returns in the long run by choosing mid cap or small cap.
How to choose the best plan
- Type of Insurance: Many factors should be considered while choosing the best plan for your child. First, parents should figure out whether they want an insurance plan, education plan, or a combination of the two. These provide financial security to the child, especially at a time when a parent dies.
- Total Coverage Amount: It depends on what kind of course the child wants to do. To consider this, you have to look at the child’s tuition fees, inflation and living expenses among other things.
- Premium to be paid: This is an important aspect of the plan as it depends on the income of the parents. Always choose a plan that suits your budget and does not force you to spend beyond the limit.
