When it comes to education, Indian parents tend to take full responsibility of the total cost, unlike the people in the western part of the world where the students are on their own after high school or after they turn 18. Parents start thinking about a child education plan from a very young age. As young as a 3-year-old.


The child education plan: like a small money box


Some fields require more funds than others, plus you don’t really know which field will be in demand when the child is about to go to college. Most parents start investing in a child education plan right when the child sets his foot in school, that is at the age of 3 or 4. An early start means a parent can start small and increase the amount of investment as and when their income increases. A child education plan is like a small money box that is meant only for the education of the child. But in this money box, you get a much larger amount than the amount you put in. The sooner you start investing in a child education plan, the lesser amount you have to invest.


When do you start investing?


Sometimes due to other financial commitments, a parent starts investing in a child education plan much later in the child’s life as compared to starting at the age as young as 3. There is no hard and fast rule as to which is the ideal time to invest in a child education plan. A parent investing later in life has to invest more money to get the same returns as a parent who started investing earlier in life.

In this child education plan, the premium needs to be paid until the child is 17 years of age and the return starts before that. If in a mishap the parent dies, then 200% of the assured sum would be paid to the child in a lump to take care of the immediate expenses, and future premiums are reserved and paid by the insurer to ensure that the policy continues to pay the survival benefits for the child’s educational purpose.


A B.Tech degree will approximately cost 12 lakhs. The cost can increase as time passes by. A degree in medicine in 2007 costs approximately 15.50 lakhs. In 2017, the cost shot to a whopping 41.43 lakhs.

But gone are those days when children selected “safe” career options like engineering, medical, law or banking. The new generation has a strong opinion on what they like and is keen to make their passion and profession the same thing. You never know which field will gain demand as your child sets his foot in college. For this, you need to start investing smartly in your child education plan. In addition to exploring these options with your child, it is also important to consider the monetary factor.


Foreign education:


Nowadays a lot of parents are keen on sending their child to universities abroad for their higher education. If the returns from the child education plan are not enough, the client can apply for a loan under any scheme. This will be an added bonus on the child education plan that you are paying for. A two-year masters in the states, the rent, along with other expenses can cost a whopping one crore a year. If a parent starts investing in the child education plan from an early age with a consistently increasing amount, then this target is not at all difficult to achieve. Giving the child quality education only means making his future safe and secure and making his life easier for the next 40 years.

Knowing what your child is interested in will only help you invest in the child education plan better.


Apart from law, engineering and medical there are a lot of fields left unexplored and those that are necessary in the real world, but no one really knows about them. Environment studies are one of them. Humans are so sure to destroy our earth that the study of geology, waste management, flood and drought management are absolutely necessary in the real world. When your child education plan is according to the interest of your child, you tend to invest smart and save more than you would typically do. For a child who has a flair for languages, being able to translate into a  foreign language is an excellent career option. For your child education plan to be smart and efficient it is very important to know where the interest of the child lies in.


Knowing the interest of the child will help you guide him to choose a career. You will also know the approximate cost of the programme. Hence you will be able to calculate how much you need to invest in your child education plan to get the desired amount when the child eventually sets his foot in college.


Some interesting fields gaining popularity in recent times are films, digital marketing, media, cultural studies, food and nutrition, history and archeology, just some to name. Sometimes the place you reside in does not have a college that provides a programme in a particular field. For example, an archeology college will be situated in a place with some archeological findings for the students to get hands-on experience. In such cases, the student might have to live in a different city, or an altogether different country. In this case, the expense increases as there is an additional expense of the rent, hostel, food and other things. Hence knowing the interest of the child is very important when you invest in a child education plan.


Indian parents, more than any parents in the world the whole responsibility of their child’s education and hence planning the right child education plan is important to give the necessary and tension free returns. Being smart and starting early and smart is important when you start your child education plan.

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