How to Plan for your Child's Education Abroad
How To Plan For Your Child’s Education Abroad!
May 28, 2021, 21:38 IST
Sending your child to a foreign university for higher education can make a huge difference in his or her future. However, the majority of us are unsure of where to begin. We would also have a number of questions about it, such as: Should you buy a child plan to secure their future? Or should you depend solely on your savings? What is the best way to prepare for a child's education? A well-thought-out and well-planned strategy will go a long way towards making your child's education plan a success.
Calculate the cost
You'll need to figure out how much money your child would need to study abroad. It covers not only tuition and examination fees, but also living expenses, food, travel, and other miscellaneous costs. Though there are no credible sources that can forecast trends, educational consultants in India may be able to help you with the best investment strategy for your kid.
You must have helped your child excel in school and extracurricular activities as a parent, however, while encouraging your children to never settle for second best, you must also ensure that their hopes and goals are accomplished. Children in today's globalised world have bigger aspirations, especially when it comes to getting an education abroad. You will need a solid financial plan to cover the costs of your child's international education.
You must also make certain that the child's financial future is stable, even if you are not present. If you are present or not, a child education plan will assist you in meeting your child's educational needs. Canara HSBC Oriental Bank of Commerce Life Insurance offers one of the best life insurance policies in India for your child to study abroad - child insurance plan is another title for it.
You can calculate how much you will be investing by providing your customised details on their website.
What is the concept behind a child insurance plan?
A child insurance package incorporates insurance and investments to protect your child's future from financial difficulties. As a parent, you want to make sure your child is comfortable and has the financial resources they need to achieve their full potential. Achieving this aim necessitates careful budgeting.
Child savings plans are beneficial financial instruments that aid in the accumulation of an investment portfolio. The fund will assist you in meeting the costs associated with your child's most important life events. Furthermore, your child earns the sum of the claim in the event of an adversity. It will help them pay for their schooling and other living expenses, allowing them to achieve their goals.
The advantages of having a child insurance plan
1. Assists in covering the costs of your children's schooling:
According to recent reports, the cost of general education abroad has increased fourfold. These figures suggest that by the time your child reaches the age to join college, the cost of higher education would have skyrocketed. Daily contributions to a child's savings plan will assist you in amassing the funds required to provide your children with a quality education.
2. Covers the costs of your children's medical treatment:
Healthcare costs abroad are huge if not covered by insurance. As a result, it's important to prepare for unanticipated health issues. In addition, the proceeds from your child plan policy will be used to cover treatment expenses, allowing you to provide sufficient medical support to your child in the event of a medical emergency.
3. Offers liquidity during cash shortages and meets your child's immediate needs:
In an emergency, you can borrow money from your child's policy or liquidate a portion of the fund's value.
4. Provides a financial safety net even if you are not present:
Proceeds from the child plan investment allow your child to complete their education and achieve their career goals even if something unexpected occurs.
What kind of plans can you choose from Canara Bank HSBC Oriental Bank of Commerce Life Insurance?
1. Child endowment plans:
A secure way to ensure financial support for your child's ambition. Child endowment plans are a secure investment choice with assured maturity benefits for your assets. These plans work better when you know how much money you'll need to achieve your goal.
You can still be sure to meet your goals with assured rewards and target defense options, even if you are unable to be there for your family.
2. Child money back plans:
Money Back plans are a safe and secure long-term investment choice for your child's future. Money Back plans are ideal because you would need money for a child's future goals over the many years, such as a four-year undergraduate course with an annual charge.
Bonuses are also available with money back plans to help you expand your investment. These incentives increase the maturity value of your plan.
3. Child Education Plans (ULIP):
As an investor, you have more options with ULIP plans. You have the option of deciding how much risk you want to take with your money. You may also benefit from market fluctuations even if you are occupied with other things by using one or more automated portfolio strategies. Long-term investors will benefit from additional incentives offered by child ULIP plans. After five policy years, you can take the money out of the accrued corpus. Withdrawals are tax-free, so you can take them whenever you want after the lock-in period ends.
Make the necessary decisions for your child’s future
The first and most crucial step in preparing your child’s financial corpus for an international education, is to choose a country in which to educate them. You must determine which countries provide the best value for your money. Depending on your child's future needs, the course and country of choice will change. As a consequence, in this case, it's important to keep your options open and maintain some versatility.
Your child's course preferences will change over time, and you can feel more at ease knowing that the amount you would pay is secure because you have invested in one of the child insurance policies offered by Canara HSBC Oriental Bank of Commerce Life Insurance.
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