You want to give the best education to your child. With proper planning, you can provide your child with the right resources that can help build your child’s future. Your child may want to pursue a career path of his or her choice. It is important that you are financially prepared to help your child achieve his or her aspirations.
Here are four key steps of education planning that can help you meet your child's education expenses:
Calculate the expenses
Your child may aspire to become an artist, a chef, a singer, a doctor, an engineer or pursue a career path of his or her choice. It is important to calculate the amount you would need to support your child’s aspirations. The first step towards calculating the expenses towards your child’s education is to identify the career path that your child would want to take. The expenses will vary accordingly.
For example, in order to pursue an Engineering degree from a premier institute in India, your child would require ₹ 4 lakh per year as of today1. However, the approximate cost of pursuing a Medical degree in a premier institute in India, today is ₹ 10 lakh per year2. Factors such as inflation must also be considered while calculating the education expenses for your child.
Choose the right child plan to invest in
It is important to choose the right child plan that can provide you the amount you would require to meet your child’s education expenses. Look for a plan that provides you the flexibility to invest as per your requirements and convenience. Some plans provide you the option to choose the premium amount and the frequency at which you want to pay. Finally, check the returns that you can get from the child plan.
Start investing at the earliest
Irrespective of the plan you choose, it is important that you start investing as early as possible. The sooner you start investing, the more time you will have for your money to grow. This can provide you better returns that can be used towards your child’s education. Investing early also provides you the flexibility to make smaller investments, making it easier on your pocket.
Purchase a life cover* for your child
This is one of the most important aspects of education planning for your child. A life cover* ensures that even in case of an unfortunate event, your child fulfils his or her aspirations. It provides financial protection to your child which ensures that the future of your child is protected, no matter what.
ICICI Pru Smart Life is one such child plan that offers a life cover* and can help you meet your child’s education expenses. It is a ULIP and provides market-linked returns. You can choose to pay the premiums monthly, half-yearly, yearly or all at once as per your convenience. In case of an unfortunate event during the policy term, your child will receive a lump sum amount. Additionally, the company will pay all future premiums on your behalf so that your policy remains active and your child receives its benefits. This ensures that your child’s education continues as desired, no matter what.
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* Life Cover is the benefit payable on death of the life assured during the policy term
1Colleges in India - https://www.shiksha.com/engineering/colleges/b-tech-colleges-india
List of Top B. Tech Colleges In India (2022): Rank, Admission, Courses and Placements - https://collegevidya.com/blog/b-tech-colleges-in-india/
Top Private Engineering colleges in India 2022 - https://www.collegedekho.com/articles/top-20-private-engineering-colleges-entrance-exam-and-fees/
2Top MBBS Colleges in India Based on 2022 Ranking - https://collegedunia.com/mbbs-colleges
ICICI Pru Smart Life (UIN: 105L145V06)