Child Expense Calculator - Compute the Cost Of Raising A Child | Tata AIA Life

Child Expense Calculator - Compute the Cost Of Raising A Child | Tata AIA Life

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Get the right financial resources to give your child the best of everything! Use the Tata AIA Life Insurance Child Expense Calculator to determine all the expenses and costs for giving them a quality education and the lifestyle they deserve!

Getting quality education for your children may not be difficult in today’s time with so many good educational institutions; however, the lack of prior financial planning can be an obstacle as the cost of good education can be expensive.

To avoid the hassles caused by the shortage of financial resources for your child’s education, you can make use of a child education plan calculator that helps you plan and map out a financial plan for your child’s future education.

A child education plan calculator is a simple and convenient online calculator which helps parents determine how much funds they need to invest or save for their child’s future education.

Your child's age is an important detail when using the child education plan calculator since it will determine the investment tenure. Always be sure to choose an appropriate number that will give you the actual investment period so that you can start investing soon and be prepared for the future.

This calculator is also beneficial as it makes choosing a good child education plan easier. You can also compare different child education plans offered by your life insurance provider and select the one that will help you fulfil your child’s education needs. Lastly, child education planning calculators also need you to determine if you already have an estimation in mind before you start the calculation. This is important because it will give your investment a more realistic approach.

What Is the Importance of Using a Child Plan Calculator?

Most parents, until a few years ago, would save money in bank savings accounts and utilise the money for their child’s future education when needed. However, the same cannot be done today. Finding good schools and colleges with the best facilities may not be difficult, but the lack of financial resources can be a definite obstacle. This is the reason many parents either compromise on the quality of education or utilise their life savings to educate their children.

But if you use a child education plan calculator, you can plan your finances and investments well in advance so your child can get the best education money can buy. The calculator not only shows how much money needs to be invested over the years until the child starts school or college but also makes it easier for the parents to pick a child education plan that is specifically designed to provide for the child’s education.

By using the child education plan calculator, you can ensure adequate financial support for your child’s education and the related costs instead of being ill-prepared and giving up your hard-earned life savings, which can be better utilised for emergencies and unforeseen situations.

How Does a Child Plan Calculator Work?

A child education plan calculator works on a predefined algorithm or a formula that produces accurate results or fair estimates in a matter of seconds. All one needs to do is input the correct information, such as the duration of the policy, the amount to be saved by the end of the policy tenure and the various costs involved in the child’s education, their current age and so on.

With these details, you can get a comprehensive outlook on how much money needs to be saved, invested, and accumulated for your child’s future education. You can also factor in various education-related costs, such as the cost of accommodation and travel in case your child wants to study abroad.

Get guaranteed * returns on maturity and create a corpus to fund your child’s education

Save Income Tax # up to Rs 46,800 +

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*T&C apply Non-Linked, Non-Participating, Individual Life Insurance Savings Plan (UIN: 110N158V09)

All it takes is a few easy steps to understand the estimated amount you will need to cover the cost for your child’s future education. You can go to the Tata AIA Life Insurance official website and follow these steps:

Click on Calculators and select the Child Education Plan Calculator.

Start filling in the values such as your child’s age, which is the investment tenure, how much you want to invest and the amount you have already saved.

You should also be able to provide an inflation rate so that your investment or savings can be planned, keeping in mind the effect of inflation.

Also, input the expected rate of returns on your investment at the end of the investment tenure.

Click Submit and easily find out how much money must be contributed to a child education plan.

The calculator considers the essential parameters and factors, and values that are needed to arrive at the results. Once you have the estimated or even the exact amount on the calculator, it can help you plan how you can save or invest in appropriate child education plans to achieve the desired goals.

Given how the cost of education, tuition fees, specialised courses and even extra-curricular activities in educational institutions are rising, having a child education plan is important. And determine how to prepare such a plan, the child education plan calculator plays an important role.

You will also need to mention your child's current age so that the investment's tenure can be computed. The child education plan calculator will help you choose suitable child education plans or investments through which you can start saving or investing a certain amount each month.

These are some of the benefits of using a Child Education Plan Calculator:

Most of the manual calculations we make could be full of human errors, which can be a setback when saving time. With an online child education plan calculator, you get quick and accurate results.

Since you are already investing money for your child’s future education, you should not have to spend money using an online tool to make these calculations. A child education plan calculator can be used free of cost.

If you use the child education plan calculator on your life insurance provider’s official website, you will be able to compare different child education plans and choose one whose features and coverage are best suited for your child.

The increasing cost of quality higher education should not be a reason for your child to not pursue their dreams. With the help of the child education plan calculator, you can invest in a disciplined manner in your choice of a child education plan and save the desired amount of funds so that the best educational facilities and opportunities can be available for your young one.

Our experts are happy to help you!

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What is a child plan?

A child education plan is a combination of investment and life insurance under a single policy that is meant to secure the interests of your child or a minor below the age of 18 years. While the life cover ensures a secure future for the child in case of the parent’s untimely demise, the investment aspect can help fulfil the child’s future goals with a financial corpus.

How can I save for my child's education?

If you want to save for your child’s education, you can use child education planning calculators to determine the various educational expenses. This can help you save and accumulate the financial resources for your child’s future education. Depending on how much you want to save, you can choose an appropriate child education plan to meet the savings goals.

How much should I save for my child’s education monthly?

To understand the monthly savings needed for your child’s education, you can use child education planning calculators. Generally, the cost of education should be calculated after considering the quality of the educational institution, the educational degree, extra-curricular activities, and any other essential educational needs.

The child education plan calculator can help you get a fair estimate of how much you should save monthly to meet these goals.

How is the cost of child education calculated?

Broadly speaking, a range of factors are considered while calculating the cost of a child’s education. This will depend on the choice of the school/college they are to attend as well as the nature of the degree or educational qualification they have to achieve. Inflation also plays a major role while calculating this cost and should be factored in.

Child education planning calculators are available online and can significantly simplify the process of calculating the cost of a child’s education.

Why should I purchase a child plan?

A child education plan offers a flexible choice of coverage, policy terms and premium paying terms which can help you choose and save enough funds as per your child’s future education needs. Such a plan is specifically designed to meet your child’s education costs and any other related expenses.

What is the right time to purchase a child plan?

The right time to buy a child education plan would be at least 5 years before your child starts school. You can purchase a suitable plan based on a policy term that is long enough, and that will allow you to save enough money for your child’s future education needs.

Which is the best child plan?

The best child education plan is the one that meets your needs perfectly and allows you to save and invest the funds at your convenience. You can always use a child education plan calculator to compare various plans based on the sum assured, policy term and premium payment modes and terms.

Is investing in a child plan good?

How do I plan for my child's higher education?

For instance, you can start planning a child policy soon after your child's birth so that you have about 5-10 years of savings and investments to fund your child’s future education. The financial planning for your child’s future education should give you an investment tenure long enough to accumulate the desired funds so that there is no shortage of financial resources in the future.

How can I calculate my child's future education expenses?

Using a child education plan calculator, you can not only calculate your child’s future expenses but also consider and compare various child education plans to check which option offers the most suitable coverage.

What are the factors to consider while purchasing a child plan?

Consider how much coverage the plan can provide when purchasing a child education plan. Since the calculation of the cost is for the child’s education in the future, it is quite likely that the coverage you choose today may not be adequate 10 years down the line. Factor in the cost of inflation as well as any other education-related expenses in case your child wants to pursue any specialised degree or wants to study abroad.

Who should purchase a child plan?

If you are a parent wanting to save or invest money for your child’s education, right from schooling to college education, a child plan can help you accumulate the funds in a disciplined manner in advance.

Since education and tuition fees as well as the cost of extracurricular activities can be quite expensive, a child education policy can keep you from dipping into your emergency savings; instead, such a plan will dedicate the entire sum assured for your child’s benefit.

Are child plans important?

Yes, child plans are important as they make it easier for parents to save or enough funds for their child’s future. With a choice of different policy terms, premium paying terms and coverage options, the parents can obtain the desired coverage they need to secure their child’s future and education.

In case of an unfortunate occurrence leading to the demise of the parents, the child education plan will ensure that the lack of financial resources does not hamper the child’s future educational aspirations.

How much does a child plan cost?

A child plan will cost as much as the coverage or sum assured you choose for your child’s future educational endeavours. While there is generally a fixed minimum sum assured for the child education policy, the higher limit will depend on your preference, subject to the life insurance company’s guidelines.

The premium amount will depend on the premium paying term and the policy term of the child education policy.

What are the tax benefits of purchasing a child plan?

Yes! You can get income tax # benefits when you purchase a savings plan and save tax up to Rs 46,800 + .

What is the best way to save for my child's future?

A child education plan can help you effectively save for your child’s future as it comprises a savings and investment component as a life cover.

Does purchasing life insurance help in planning for my child's future?

Yes, with a life insurance policy, planning your child’s future can become easier. If you want to secure their future educational goals and aspirations, the life cover can provide them with financial stability in case of your absence.

Moreover, if you have been saving a financial corpus through your policy years down the line, the maturity amount can help your child fulfil all their educational needs.

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The complete name of Tata AIA Fortune Guarantee Plus is Tata AIA Life Insurance Fortune Guarantee Plus (UIN: 110N158V09) - Non-Linked, Non-Participating, Individual Life Insurance Savings Plan.

* “Guaranteed Annual Income” shall be a fixed percentage of the Annualised Premium / Single Premium (excluding discount) payable in a year. Guaranteed Annual Income as per the chosen Income Frequency shall commence after maturity till the end of the Income Period, irrespective of survival of the life insured(s) during the Income Period.

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This publication is for general circulation only. This document is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. This document is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

L&C/Advt/2023/Apr/1144

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