How to secure your child’s future with an education policy

Determine the amount of coverage you need based on your goals for your child’s education.

Determine the amount of coverage you need based on your goals for your child’s education.

What you need to know:

  • The sum assured in an education policy and the premiums to be paid is determined before the start of the policy.
  • Saving through an education insurance policy is a long-term process and therefore, you need to be realistic about what you can afford to pay based on your current income and lifestyle.
  • One of the many benefits of using life insurance as a savings tool for an education policy is the tax benefits that come with it.

Your children’s education is a long-term commitment that can consume tremendous expenditure. To ensure you don’t suffer this fate, consider taking an education insurance policy, which you can use to save money for your children’s education, whether you are present or not. “An education policy is a type of life insurance that is meant to provide a channel for you to save a certain amount of money for your child for their education. The life of the child is insured but the parent is the policy owner,” says Rhina Namsia, the chief executive officer of The Acemt Consulting, a financial planning, and investment advisory firm.

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