Parents often set aside an amount based on what a course costs today. Over a 12 to 15 year horizon, that approach reliably underfunds the goal.
Compounding works on costs too
A course costing ₹20 lakh today, inflating at 8% a year, costs approximately ₹50 lakh in 12 years. Planning for ₹20 lakh does not fund 40% of the goal — it funds the first fraction and leaves the rest to borrowing or compromise.
State the assumption, then test it
Any credible plan states its inflation assumption openly. Run the projection at a lower and a higher rate and see how the required monthly contribution changes. If the plan only works at the optimistic end, it is not a plan.
Protect the goal, not only the corpus
An education goal should remain funded even if the earning parent is not there. That means the protection plan and the education plan are designed together, not separately.
This article is educational in nature and does not constitute investment, tax or legal advice. Please consider your own circumstances and seek professional guidance before acting.