Going by the age-old adage, an investment in knowledge pays the best interest. Using the education loan to buy a child education insurance plan is the best decision that you can take today. Both child education loans and child insurance plans are designed with an aim to secure your child’s future so that they can go on to get employed and empowered to earn on their own. But, what is the trick behind buying a child education insurance on an education loan? Read along to know more about it!
Why Should You Buy A Child Education Insurance On Education Loan?
- Purchasing child education insurance on an education loan saves you from the risk of not being able to pay the loan. In the process, you don’t have to go through any legal proceedings or suffer penalties because the child education insurance company will make up for the residual education loan amount.
- Though education loans may seem costly, signing up for child education insurance at the same time while taking a loan will not only lead the bank to secure itself but also protect your child’s future. If any unfortunate event strikes you, your ward’s education won’t stop, and he/she will go on to shine further with the financial support of the education insurance.
- With inflation in the costs of educational institutions, courses, private tutorial points, and so on, it has become imperative to march forward to purchase education insurance for your child on the education loan. This will significantly benefit you to easily fund your child’s higher education in the world’s top-notch universities. Even if you feel cornered due to the financial crisis and get burdened by the education loan, going for child education insurance on this very loan will rescue you from this trouble.
- Another great benefit that can be enjoyed is the facility of withdrawing a certain amount for the child’s medical treatment. After taking an education loan, if you go on to have insurance coverage, you can use a certain amount of the insurance money to pay for your child’s treatment in case the need arises for immediate hospitalization or execution of surgical procedures.
- Education loans may make you feel burdened, but you rarely choose to opt-out of them. In such cases, purchasing a proper health insurance plan will be the wisest step ever. You may wonder how you will manage to pay the premium timely. Well, there is nothing to worry about. This is because the amount of payable premium per year is relatively low. You won’t get such benefits in any education loan. Therefore, it is prudent to buy child education insurance on an education loan to give less from your pocket yet enjoy excellent facilities.
- While it is a great idea to keep the savings intact through an education loan, having child education insurance on that very loan lets your children have access to a certain amount of income periodically. This income amounts to about 1% of the promised sum on the occasion of the absence of the parents or their inability to pay the premium.
- No more stressing on the fact that whether you will be able to repay the amount of education loan or if your child fails to get his/her coveted job and does not remain in a position to pay the EMI when he/she grows up or if it will be a burden on the children. That is why purchasing a child education insurance plan on an education loan is essential to secure the children’s future and to get significant returns at the time of necessity.
- Having child education insurance on an education loan implies that if the child encounters any untoward incident, his/her family will immediately receive an assured sum, and the insurance company can repay the loan.
- A child education insurance on an education loan gives you tax benefits and the liberty to withdraw money whenever required while feeling security that the insurance company will repay the loan amount.
- It is possible that you are burdened by home loans or car loans and finding it impossible to pay the education loan. Signing up for a child insurance plan on an education loan is the best idea to get rid of the education loan while also creating an investment fund for your child’s usage in the future.
- Besides, you will also be getting an option to choose the riders. There are specific insurance plans that provide the policyholders with the waiver of premium by the rider. Therefore, in the absence of the parents, the policy tenure will be waived off, and the children will be able to go ahead with their courses.
- Investing in child education insurance on an education loan will give your child an added benefit of quickly getting a personal loan in the future because all the banks accept insurance plans like this. No doubt, you’ll get your education loan repaid to the bank by the insurance provider. An insurance policy acts as collateral for loans, thus enabling the children to take loans at times of need when they grow up.
- Getting a child education insurance plan on an education loan makes you feel free from the tensions of the loan. Education insurance plans also give you the liberty to withdraw some amount of money from the investment fund formed due to the payment of the premium to nurture and polish your child’s special talents. For example, your kid may be interested in acting or dancing
Irrespective of their types, loans are associated with fear and burden. What if you fail to repay the education loan? What will happen if your child, for some reason, does not make it to his/her dream job? You can’t even back off at such a point. Under these circumstances, a child education insurance plan will resolve your problem. Sign up for child education insurance on an education loan to let go of all of your worries and secure your child’s future. Plan well to ensure a worry-free life for your kids.