What is a College Savings Plan and Why You Should Get One?
Being a parent has its own fair share of joy and responsibility. Successful parenting is not an easy task, but a challenging accomplishment. It involves nurturing your child into a responsible individual with a bright future ahead. And most people turn to college savings plan to secure their child’s future. But what is a college savings plan?
The best gift that a parent can give to his child is bright future through good education. Today, a great deal of your kid’s security depends on financial planning to figure out the needs of your child to a higher education, accommodation and college fees.
What is a College Savings Plan?
Simple as its name implies, a college savings plan is an investment vehicle available to the parents in order to save for their child’s college education and expenses.
As education cost rise every day, it is important that you invest in a savings plan which offers enough funds in order to meet the expenses and cost of your kid’s educational milestone. Moreover, a college savings fund offers a comprehensive list of benefits of life cover along with a maturity benefit that would take care of your child even if you are not around.
Here are 3 benefits of getting your child a college savings plan:
Maturity Benefit In Order To Meet College Expenses
Most parents would love for their child to take up professional course such as a doctor, lawyer, architect, engineer, pilot and more. However, when it comes to tuition fees, these courses are simply overwhelming and incredibly unaffordable for most parents and might require you to avail a loan in order to meet the educational needs of your child.
However, if you started investing wisely for your child’s college savings plan at an early age, then the investment corpus that you gathered at the time of its maturity will be enough in order to meet the fees and expenses of college.
Support For Your Child’s School Fees
If a parent that avails a college savings plan passes away, the insurance company will pay around 10 percent of the sum immediately and will make periodic annual pay-outs that amount to 10 percent of the sum that is assured are paid every year until the end of the policy tenure. These payouts are enough in order to pay for their college fees in your absence.
Partial Withdrawals In Order To Enhance Your Child’s Talent
Does your child possess any special talents such as instrument playing or acting? With college saving plans, you can help nurture such talent further through partial withdrawals from the college savings plan. Also, there are particular plans that come with a periodic payout which can be very useful to meet the expenses incurred while enhancing your kid’s talent further.
With the cost of higher education continuously on the rise, some parents can’t seem to keep up with the expenses, thus cannot provide their child with a good education. With the help of college savings plan, however, any parents will have the confidence of giving their child a bright future ahead.