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What is Child Education Plan?
Child Education Plan is a kind of insurance that financially secures your child’s future by financing his/her higher education expenses.
As a parent, your children are the most important part of your life. It is your responsibility to keep them happy and secure. One way to fulfill this dream is to provide your child with the best education.
But with the ever-increasing rate of education fees, a major chunk of your salary goes into school and college fees.
Hence, you need to save money and invest it in the best child education plan for your child’s higher education. This will relieve you from the financial burden of the payment of heavy fees of your child.
The best child education plan ensures financial stability for your child’s education even in your absence.
What is Child Insurance Plan?
Child Insurance Plan is a policy that provides financial security to the child in case of unfortunate death of the parent. It is an insurance cum investment plan.
Securing the life of your child is as important as securing his/her higher education. Such policies also act as the best investment plan for the child when he/she grow up.
Difference between Child Education Plan & Child Insurance Plan
Here are a few points of difference between Child Education Plan & Child Insurance Plan:
Child Education Plan is a short-term plan, usually a plan of few years. Under this plan, you will be required to pay premium either monthly, quarterly or yearly depending on the type of policy.
If you want to cover the basic primary expenses of your child, you can start this plan from his/her early age. Similarly, if you want to cover the college expenses of your child, you can start the plan in his/her secondary phase.
On the other hand, a Child Insurance Plan is a long-term investment cum insurance plan that you can start even before the birth of your child. Under this plan, you need to pay the premium at fixed intervals. It covers not only the primary or secondary phase of your child, but it overall covers the significant stages in the life of your child.
In case of a Child Education Plan, the benefits are limited to the extent of better education for your child. The objective of this policy is to help you in providing the best education to your child. Whereas, in case of a Child Insurance Plan, the benefits are unlimited.
The objective of this policy is to help you to benefit every aspect of the life of your child, be it higher education or wedding.
Under Child Education Plan, you can use the maturity amount of the policy only for the education of your child. Whereas under Child Insurance Plan, you can use the maturity amount of the policy for your child’s education, wedding, illness or giving him/her a new start in life. It also covers any risks arising with the death of the parent.
The Bottom Line:-
A Child Education Plan helps you in securing your child’s future by building a corpus for your child’s higher education and a Child Insurance Plan helps you in securing your child’s future in all aspects. Hence, you can choose any of them or can even go for both depending on your requirements. All the best!