What is education insurance?
Education insurance is a fund to get admission in the university for higher education. When your child matures at the age of 18, he or she can then access the funds and use it for admission to the university. Many insurance companies provide such plans for parents and caretakers. This helps in taking the load off from young adults for their fees and other claims in the uni.
The world has come to a halt due to COVID-19. It has forced people to think about ways to help the coming generation. Their education, health, and general wellbeing. Getting insurance assures safety.
You can get education insurance for any stream, including engineering, biomedical, arts, finance, and management. Usually, the claim covers the educational expenses from the age of 18 to 23. However, if one wishes to pursue education after that, they can talk to the insurance agent and extend the cover.
How safe is education insurance?
Education insurance are safe and guarded. Parents or caretakers have full rights over the funds. In case your child doesn’t want to continue education, or some misfortune befalls, you can always draw the benefits of the insurance. Claim the money and use it. You can put a hold on the payment if your child wishes to continue education after a break.
How much should you invest in education insurance?
A rough estimate (as posted by insurance regulatory education) of expenses shows a rise of 4% every year. This includes the cost of admission, hostel, books, and other resources. You can discuss this with insurance professionals for a better approach. However, it is advisable to compare all the plans before you invest. If your child wishes to join a foreign uni, the expenses may change accordingly. Always talk to your child about his or her interests and willingness to take admission in the program.