Child Education Plans V/S Child Insurance Plans - Know The Difference

Both child education plan and child insurance plans is for ensuring a secure future for your child, albeit with a difference. Education plans as the name suggests is specifically for the ongoing education of kid, right from the time they enter school. There is predetermined maturity stages, which allow funding at definite periods related to your child’s growing up years. Child insurance plans on the other hand provide maturity full term amounts or compensates the child and allow them to continue their education in the event of unfortunate death of parent.

Here are some points of difference between the two. 

Out and out education benefits V/s death benefits

Child education plans as the name suggests is only for covering the education cost of your child. This is a clear and precise plan that funds the costs related to studies in the various stages of student life. It is wrong to expect anything else from such a policy.

The scope of child insurance plans is far wider. The main aim behind the insurance plans for your child is to provide him or her with an uninterrupted chance at education irrespective of the presence or absence of parent. While nothing can substitute a well wishing parent, it will be wrong to deny the power of strong financial backing. Even when the policyholder dies or lose their job because of permanent disability, the child can continue with education in the same vein without problems, thanks to the child education plans.

Limited V/s Expansive benefits

There is no doubt regarding the fact that child education plans have a limited scope when it comes to related benefits. It is specifically for the education of your child. Child insurance plans on the other hand provide financial help, which the policyholder can spend any way chosen, albeit for the good of their child. Use the maturity amounts on your child’s education, wedding, or for giving them a start in life. The limit of use depends upon the scope of the imagination of the policyholder.

Child education and insurance plans both have definite benefits for the policyholder and the child involved. The difference lies in the tenure, the maturity period, as well as the benefits involved. Consider your individual situation or your expectations from a particular policy and start searching!