Best Child Education Plan

Future Proof Your Child's Higher Education

As a responsible parent, providing your child with the best education opportunities is perhaps one of your biggest financial goals, isn't it?

But with college costs escalating at an unprecedented rate, this goal can seem daunting.

Over the past four decades, college education costs have increased by a staggering 1200% in the US, far outstripping the general inflation rate.

This trend isn't limited to the US; it's a global challenge affecting families everywhere.

How does inflation impact your child's college fees?

If your child is heading to college in 5 years, you can expect to pay 1.5 times the current costs.

In 10 years, this amount triples, and in 15 years, it could increase by 4.5 times.

The need for effective Child Education Planning has never been more urgent.

Our Education Planning Service helps you achieve this objective with much ease.

What is Child Education Planning?

It is the process of ensuring the availability of adequate funds for your child's higher education. Our comprehensive approach includes:

• Evaluating Current Education Costs:

  We provide an overview of the current costs of education in top destinations worldwide, including the US, UK, Canada, Europe, India, Singapore, Australia, and UAE. This gives you an idea of how much it will cost for education in your preferred destination(s).

• Mitigating the impact of inflation

  Inflation is the most potential and least understood financial risk. Understanding and planning for the impact of inflation is crucial. Our strategies are designed to anticipate these changes, ensuring your savings beat inflation so that you don't fall short of the amounts required. 

• Investment Strategy Development:

  Investing makes your money work so that you don't have to do all the heavy lifting. We guide you on the best investment strategies, whether it's through lump-sum investments or regular monthly contributions, balancing risk and reward to build the required corpus.

• Selecting Suitable Investment Plans

  Our expertise helps you in choosing the right Education Savings Plan tailored to your needs.

• Securing Your Goals:

  With adequate life insurance, we ensure that your child's education plans remain uninterrupted, regardless of any unforeseen circumstances like death, disability, or critical illness.

• Ongoing Investment Management:

  We actively manage your investments, reviewing and rebalancing to ensure your goals are met.

Why is Child Education Planning Important?

• Achievability of Education Goals: Our bespoke planning makes your child's education goals attainable despite rising costs.

• Harnessing Compounding: We help you leverage the power of compounding so that you don't have to do all the heavy lifting.

• Reducing Student Loans: Our strategies aim to minimize or eliminate the need for student loans, preventing future financial burdens on your children.

• Protection Against Uncertainties: We help you safeguard education goals against unforeseen events of death, disability, or major illness. "

Child Education Planning Solutions in UAE

In UAE, you can secure your child's academic future with the help of one of the following solutions;

1. Child Education Insurance Plan
2. Child Education Investment Plan

What is Child Education Insurance Plan?

A Child Education Insurance Plan is an insurance product that can help you save and secure the future education expenses of your child(ren). It is an insurance and investment combined in a single plan. 

Here's a breakdown of what it typically involves:

1. Purpose:

   The primary goal of a Child Education Insurance Plan is to provide a lump sum of money when the child reaches the age for higher education.

   This money can be used to cover various expenses related to education, such as tuition fees, living expenses, books, and other academic materials.

2. Features:

   • Savings Component: Most of these plans have a savings component where you pay regular premiums over a specified period. The money accumulates over time and is invested by the insurance company.
     
     
   • Insurance Component: There's usually an insurance aspect that provides financial security in case of the parent’s untimely death. In such an event, the future premiums may be waived, but the child will still receive the intended funds at the maturity of the policy.
     
     

   • Maturity: The plan matures when the child reaches a certain age, often timed to coincide with the start of higher education.

   • Riders: Additional riders, like critical illness cover for the child or parent, can often be added to the plan for more comprehensive coverage.

What is Child Education Investment Plan?

A Child Education Investment Plan is a financial product designed to help you invest systematically for your child's future education expenses. Unlike a traditional insurance plan, its primary focus is on investment growth. Here's an overview of its key aspects:

• Purpose:

  The main objective of a Child Education Investment Plan is to help you build a substantial corpus through investments that can be used to fund your child's higher education. These plans are particularly useful given the rising costs of education.

Features:

• Investment Component: The core of these plans is the investment in various assets like stocks, bonds, or mutual funds. The choice of investment vehicles typically depends on the risk appetite of the parent and the time horizon until the child needs the funds.
  
  
• Flexible Contributions: Parents can contribute regularly through systematic investment plans (SIPs) or make lump-sum investments, depending on their convenience and financial situation.

• Risk and Returns: The returns on these plans depend on the performance of the underlying investments. Higher risk options like equity funds may offer higher returns but come with greater volatility. Conversely, lower-risk options like bond funds offer more stable but typically lower returns.

• Maturity and Withdrawals: The plan usually matures when the child reaches a certain age, often around the time they start higher education. Some plans offer the flexibility of partial withdrawals for education-related expenses at different stages, like school or college fees.

• Customization: Many plans allow parents to choose the investment mix and switch between funds based on changing risk profiles or market conditions.

• Lack of Insurance Cover: Unlike Child Education Insurance Plans, investment plans typically do not include an insurance component. This means they do not provide a death benefit if the parent passes away before the maturity of the plan. However you can buy a separate term life insurance to cover this goal. 

In summary, Child Education Investment Plans are more focused on growing the invested money through various market-linked assets. They are suitable for parents who are looking to maximize returns on their investments for their child’s education while being comfortable with the associated market risks. 

It's important to carefully assess both options, understand the risk-return profile, and consider the risks and returns before choosing between the Child Education Insurance Plan or Investment plan.

Fostering Dreams: How College Savings Shape Your Child’s Ambitions

I read this insightful quote from Dan Ariely, and I wanted to share it here with you.

“When parents have college savings accounts for their kids, their kids show higher social and cognitive performance.”

Parents who are financially prepared instill a great amount of confidence in their children to dream bigger and aim bigger. 

Take the First Step Today

Don't let these soaring costs impede your child's future.

Schedule a complimentary Education Planning session with us and start paving the way for your child's successful future.

So why wait?

Schedule a complimentary Education Planning session to Get Started. 

Click here to Book a Discovery Call 

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Frequently Asked Questions