Tuesday, January 22, 2008

A child education policy

An investment-linked child education policy is one of the tools that you can use to accumulate sufficient fund for your child's future education. It has an added advantage that the same policy provides an insurance coverage for your child. You can also obtain tax relief for the payment of premiums.

Consider the following points before you take up such a policy:

Duration of the policy: The policy should mature when your child is about to embark on his tertiary education.

Returns of the policy: The returns from the policy should be sufficient to cover the expenses for the duration of the course.

Your budget: The size of the policy is determined by the amount that you can set aside for the monthly or annual premium.

Premium waiver benefit for the plan: This is to make sure that your child's education fund is intact if somthing unfortunate happens to you.

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...