Education Saving Schemes in India

Education Saving Schemes in India: Child Education Insurance Products

Education is the biggest expense in anyone’s life. And day by day people are becoming more and more concern about their child’s education. And many Life Insurance Companies are taking the advantage of this need of mass population.

Yes, Almost every Life Insurance Company has launched it’s own Child Education Insurance Plan. They claim that, you will have all the benefits of Savings, Investing, Insurance & Tax under one scheme only.

And that’s why Child Education Plans are in demand right now in India. This is because people are scared of rising educational costs. And Insurance agents take the advantage of this need and fear of people and sell them Child Education Schemes.

Now, If you ask me than in my opinion, Child Education plans are nothing but the Opaque Mutual Funds. Because they charge higher entry loads, fund management charges and administrative charges. Rather than why not start SIP in some Equity Diversified Mutual fund and buy a separate term Life Insurance Policy?

Child Education Insurance Plans = Mutual Funds + Life Insurance

Mutual funds are associated with 0 Loads and Minimal Fund Management charges than the Child Education Plans. So According to me, The Best Education Saving Scheme in India for your child is, You invest in Equity Diversified Mutual Funds separately and buy a term Life Insurance Policy separately.

Never Mix Insurance with Investment. It is a Bad Combination. And yes, if you have not started saving for your child’s future than start now. This is because it is a very important financial decision.