7 Things To Consider In An Education Plan - Insurance Products Guide | SmartChoice.pk

7 Things To Consider In An Education Plan

Posted Date: Sat Jul 2016

SmartChoice.pk is committed to help its reader make smart choices and comparisions. In this regard we shall now tell you the 7 important aspects that you should consider while investing your hard earned money into a child education plan. This will help you make the most out of your education fund, however keep in mind that not all policies have the best of all these features so you always have to make the right choice that gives you the best of incentives worthy of your investment. Here they are listed below: 1) Entry Age: There are two types of entry ages, minimum and maximum. What this means is the minimum and maximum age of the parent who is applying for the education plan. The lesser the minimum age the better as young parents can apply and the more the maximum age limit the better because it helps if you’re applied at a latter age or are applying for a 2nd or 3rd child. 2) Cover Expiry: This is the age limit of the parent till which the policy can be continued and at which it will mature. Look for a policy that gives you the highest cover expiry as the later it expires the more monetary benefit you shall gain and also it helps if you have applied for the policy at a latter age. 3)Indexation: Premium and the Assured Sum would be increased on regular intervals to counter inflation and this can be very helpful as you don’t want your assured sum and accrued bonuses to lack when it’s time to pay for your child’s university admission or tuition fees even after having saved for all those years. 4) Bonus Allowance: This is the percentage of the sum insured that will add up till the policy matures and the more it is the better for you as your accrued bonus shall be higher in that case. 5) Income Benefit: This is the amount that will be payed on a continued basis in case of death or total disability of the parent. This is payed quarterly in advance so your child can continue going to school and studies won’t be hampered in any case whatsoever. 6) Optional Waiver: If you run into an accident or fall sick and are unable to continue your current occupation for a few months, this feature will guarantee that your premium will continued to be paid on your behalf by the plan provider in full. 7) Continuity Bonus: This is a bonus that will make your investment fund grow faster than usual if you pay your premiums on a timely basis for a set duration without any breaks whatsoever. This bonus may also be in effect if you continue your policy for a longer duration Mentioned above are 7 important features that you should consider while opting for an education plan for your child. We hope that this write-up helps you compare policies under a better light.