Education inflation in India is not a dramatic topic, but it should be. The cost of engineering or medical education has roughly doubled every 7–8 years for the past two decades. A private engineering college that cost ₹8 lakh in 2010 costs ₹20–25 lakh today. By 2033, when today's 5-year-olds are 18, that same education could cost ₹55–70 lakh.

Most parents know this, vaguely, and respond by opening a savings account or a recurring deposit in the child's name. The intent is right. The vehicle is wrong. A savings account earning 3–4% per year cannot outrun 10–12% education inflation. You'll save diligently for 15 years and still find yourself short.

"The goal isn't to save money for education. The goal is to build a corpus that grows faster than education costs — and that reaches maturity exactly when your child turns 18."

A goal-aligned savings or ULIP plan structured with an 18-year maturity (or whenever you need the money) does both things: it grows at a rate that can outpace inflation, and it comes with built-in life cover so that if you pass away during those 18 years, the policy continues and the full corpus is still available for your child's education.

For conservative parents who don't want market exposure, a guaranteed savings plan with a fixed maturity at age 18 provides certainty — you know exactly what amount will be there on the day your child starts college applications.

For parents comfortable with some equity exposure, a ULIP with a balanced or equity fund allocation over a 15+ year horizon has historically delivered returns that meaningfully beat education inflation.