What should you know before buying an education plan for children?

New Delhi: There is no doubt that parents have always desired the best education for their children. All parents want their children to have the best education possible so that they can ensure a prosperous and secure future. Surviving in the real world in such rapid change requires not only formal education but also skills and technical education. The desire to get their children enrolled in reputed universities, especially, in foreign lands, has caused most of them to inquire about education loans.

A look at details from 2021 to 2022 reveals how the cost of education has increased by 10 per cent. Education is becoming more and more expensive, so it's important to be financially prepared for your child's education. Also, parents are freed from the financial burden of college fees and can focus on their children in the future.

With so many parenting plans out there, choosing the best one can be difficult.

Important factors to consider when buying education insurance

It's important to understand the education plan payment policy. Consider the possibility that you will need the money before the due date. In that case, a partial redemption clause can help. Managing your education costs is easy when your plan allows you to set flexible cash withdrawal intervals.

Along with figuring out the funding needed for higher education, it's important to figure out and calculate your education costs in advance. Discuss the types of degrees your children are pursuing, college choices, and other potential costs. Consider education inflation, the cost of living, and the current cost of your desired degree.

It is important to determine the duration of the educational plan. The sooner the better, but it's never too late to start. The length of the plan should be calculated based on your child's age. Short-term education plans require higher premiums and can face liquidity crises before maturity if you do not meet at least 10 years of tenure.

A good education plan is not only important for funding your children's education. Also, look at it in terms of investing and growing your money. Education insurance saves children financially and relaxes parents. So choose your education plan wisely and carefully.