Parents always wish the best for their children. And among the amenities they want to provide to their children, one of them is best in class education so that he/she can achieve his/her career goals.

Virat is father to Ajinkya, an 8-year old child. Ajinkya is one smart kid and early age aptitude tests indicate that he is well-suited for a career in science. Not surprisingly, Virat plans to set him up for a degree in medical science.

Challenges for child education

Virat is aware of the challenges facing him. Apart from the challenges of education, which is for the best child plan to grapple with, Virat will need to have an answer for the sharply rising cost of education.

Cost of Medical Degree

(Assuming 5% Inflation (CAGR) in cost of medical education)

Consider this – education cost of a medical degree today at Rs 32 lakhs is beyond the reach of most parents and it’s no different for Virat.

Assuming 5% inflation, ten years from now it will cost Virat Rs 52 lakhs to fund Ajinkya’s medical degree.Twenty years from now it will be a whopping Rs 85 lakhs.

Good news for parents

The good news for Virat and worried fathers like him is that help is at hand in the form of child insurance plans.

Best child plan are tailor-made to meet the future financial needs of your children. You could invest in them to build a corpus for:

·         your child’s education

·         child’s marriage

·         a house that you wish to gift your child, among others

Best child plan are available in both forms – unit-linked plans and traditional plans to suit individuals with varying risk profiles.

How parents can plan ahead…

Virat needs to have about Rs 52 lakhs ready in 10 years (refer infograph), when Ajinkya will be set to apply in medical schools. To accumulate this sum, Virat needs to invest Rs 22,500 every month (or Rs 270,000 annually) over the next 10 years in an investment plan that grows at 12% CAGR (compounded annualized growth rate). Should Virat invest this sum over 10 years, he can aim at accumulating Rs 51,75, 871 (or Rs 51.75 lakhs) by the end of the tenure.

 

Child insurance plans are particularly useful in these competitive times when cost of education is escalating precariously and there is considerable pressure on children to acquire best in class education. Parents, expectedly, do not want to cut corners in providing for their children. They must consider the option to invest in a best child plan to accumulate wealth over the long term towards child’s education and marriage.

While children strive hard to achieve their dreams; it’s the parents responsibility to ensure the right financial support at all times. Bajaj Allianz Young Assure – a traditional savings insurance plan  ensures these dreams are fulfilled irrespective of any eventualities. Bajaj Allianz Life Insurance company has one of the best claim settlement ratio of 98.1%* & is one of the most preferred brand to invest in for a JiyoBefikar future. Please fill in the details below so our representative can get in touch with you.

Source: https://lifeinsurance.bajajallianz.com/tax_insights/lifeinsurancecategories/your-childs-tomorrow-depends-on-what-you-do-today/