Skip to main content

Child Education Plan Vs Child Coverage Plan

Buy Child Insurance Plan Online
 
 

A child brings happiness and joy, he or she also brings many responsibilities for parents. It is not an easy journey but definitely one of the most important one where a small baby relies on you. His/her dream, desire, future security, financial stability all depend on you and the way you invest for your child. The better the plan, the better are the chances of bright future of your kid.

Therefore, there are 1000s of policies available just for you by various companies to make your child's future a bed of roses. However, what literally confuse parents is whether to go for Child Education Policy or Child Coverage Plan

The dilemma which plan to go for often let parents to analyze and compare child plans online. In order to avail the best child policy it's important a detailed research of various plans is necessary. Parents realize that education is the top most priority of parents, understanding that education plays an important role in enhancing one's personality, character and life, thus taking it lightly is not an option. Hence, child education policy is exclusively designed for the kid's education whereas child coverage plan is to ensure that even after the death of guardian, the education continues and other aspect of life too. In order to have a best child future plan its mandatory a detailed dissection of terms and conditions is done. A hesitant decision can prove to be a loss in the longer run.

Difference between Child Education Plan and Child Coverage Plan

1) Untitled

 

Term Plan– Child education plan is usually a short-term plan where you are asked to pay premium monthly, quarterly or yearly. It is easy to scheme for the future as one design the policy to be matured for specific phase. Like if you want to cover the basic education of your child, then start investing as soon as he/she joins school and similarly to cover the college expense of your child, the investment needs to be started from secondary phase itself.

On other hand child indemnity plan is a long-term investment that can begin even before child is born or with child birth. Here, the maturity date is pre-decided and one needs to pay the premium at fixed interval. The agenda of this plan is to look after every aspect of child's life after the sudden demise of parent.

2)Benefits– When it comes to child education policy then, the benefits are limited as it only focuses on giving financial support to you to provide better education to your child, nothing more, nothing less.

On second hand, the child coverage policy's aim is to look after every aspect of child's life from education to wedding, thus has expansive benefits. Therefore, the money you receive at maturity can be used for anything as long as it is for your child's welfare and development.

3) Area covered– Child education plan is specifically designed just cover your education. The money you receive at maturity can only be used to give your child a good education that is it provides only education benefits. You can take up a plan for each phase of your child. For example- To cover primary, secondary and higher education cost.

On other hand, child indemnity plan covers wider area of your child's life. If by some mishap, death knocks your door then be sure your child will get death benefits so that his/her future remains secured even when you are not there. It provides your child with much needed financial stability so that in future he/she does not feel helpless and can happily continue with his/her studies, career or wedding as he/she may seem right.

Now, that you know the basic difference between child education plan and child coverage plan then it will be easy for you to buy a child plan for your kids. Before buying child plan for your child make sure you read the terms and documents carefully.

-----------------------------------------------
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

-----------------------------------------------

Popular posts from this blog

All about "Derivatives"

What are derivatives? Derivatives are financial instruments, which as the name suggests, derive their value from another asset — called the underlying. What are the typical underlying assets? Any asset, whose price is dynamic, probably has a derivative contract today. The most popular ones being stocks, indices, precious metals, commodities, agro products, currencies, etc. Why were they invented? In an increasingly dynamic world, prices of virtually all assets keep changing, thereby exposing participants to price risks. Hence, derivatives were invented to negate these price fluctuations. For example, a wheat farmer expects to sell his crop at the current price of Rs 10/kg and make profits of Rs 2/kg. But, by the time his crop is ready, the price of wheat may have gone down to Rs 5/kg, making him sell his crop at a loss of Rs 3/kg. In order to avoid this, he may enter into a forward contract, agreeing to sell wheat at Rs 10/ kg, right at the outset. So, even if the price of wheat falls ...
Read more

ICICI Prudential Balanced Fund

 ICICI Prudential Balanced Fund scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60-80 per cent with a minimum of 51 per cent, and the approximate debt allocation is 40-49 per cent, with a minimum of 20 per cent. An impressive show in the last couple of years has propelled this fund from a three-star to a four-star rating. The fund has traditionally featured a high equity allocation, hovering at well over 70 per cent, which is higher than the allocations of the peers. But in the last one year, the allocation has been moderated from 78-79 per cent levels to 66-67 per cent of the portfolio. ICICI Prudential Balanced Fund appears to practise some degree of tactical allocation based on market valuations. Within equities, well over two-thirds of the allocation is parked i...
Read more

Equity investors should track market developments

The stock markets have been volatile over the last few days. They are in a sideways movement and trying to find the bottom after a fall of 20 percent a week ago. The market sentiments are not very positive at the moment and the recent developments are expected to dampen them further. Globally, governments and central banks are trying to cut rates and announce packages to improve business sentiments. These are some of the major developments in the markets last few month: A) Global On the global front, another large US bank went into a financial crisis. The US government took quick measures to avoid the spread negative sentiments in the markets. The US government announced a bail-out package and agreed to shoulder the losses on the bank's risky assets. China announced a large cut in interest rates and reserve ratio to boost the investor sentiments in the markets. Recently, the World Bank announced China's growth rate next year will come down to 7.5 percent. The European ...
Read more

Fortis Mutual Fund

Fortis Mutual Fund, a relatively new player, it is still to prove its case and define its position in the industry. In September 2004, it came onto the scene with a bang - three debt schemes, one MIP and one diversified equity scheme. And investors flocked to it. Going by the standards at that time, it had a great start in terms of garnering money. Mopping up over Rs 2,000 crore in five schemes was not bad at all. The fund house has not been too successful in the equity arena, in terms of assets. Though it has seven equity schemes, it is debt and cash funds that corner the major portion of the assets. Most of the schemes are pretty new, and the two that have been around for a while have a 3-star rating each. The last two were Fortis Sustainable Development (April 2007), which received a rather poor response, and Fortis China India (October 2007). Fortis Flexi Debt has been one of the better performing funds, after a dismal performance in 2005. It currently has a 5-star rating. None ...
Read more

Birla SunLife Frontline Equity Fund

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   BSL Frontline Equity Fund   Strategy The fund's investment strategy is in line with the BSE 200. This way its allocation is sprinkled across the sectors which brings in stability. Allocation to large caps is close to 75 per cent while market gyrations of last 2 years have seen its allocation to mid- and small-caps come down. Though the fund has the mandate to pick stocks from outside the ambit of BSE 200, it has largely stuck with the benchmark with just 10 to 20 per cent of the investment going outside it over the past 5 years. Sector-wise allocation though is mostly in proportion to the benchmark.   Its dominant sectors include automobiles, FMCG, financial, technology and energy. Banking and FMCG performed well last year which is reflected in performance. Its stock p...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now