4 Replies to “what are the essentials to be looked at before investing in children’s education insurance plans?”

  1. As I am a student of business as I know, for your children’s education insurance plans you most have to know the proposal of insurance types what will be the monthly or half yearly or yearly premium and In future is there any problem will occur on the withdraw of insurance premium amount for these there is essential to be looked…….. thanks

  2. I assume you mean the a tax advantaged savings plan.
    How long has the plan been around the company been rated high.
    Can you withdraw without a penalty if plans change!!!
    All fee’s that will or could be charged.
    What will your money be invested in and what is the guaranteed return?
    Stay away from high risk crapolla.

  3. Hi Abha,
    Few basic points about children plans / ULIPs / Endowment plans
    – Whatever they may claim, they give return between 4-6% on long run.
    – High Administration charges.

    Always go for High Pure -Term Insurance for yourself and put the rest of money either in PPF / SIP in MFs.
    Let me give me one example.
    My friend took child plan of 2 lacs by paying yrly premium of 18,000/-
    Now consider this option. At age of 30 yrs, for 3000 yrly premium you get 10 lacs of term insurance & the rest of 15,000/- can be put in Child’s PPF.
    Its that simple logic.
    Think over it.

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