Child Education Plan

Child Education Plan

Did you choose your dream career? If yes, that is great! But if you were forced to choose something else just because of funds issues then you missed the golden opportunity to make your dream career into reality. In today's competitive world we as parents offer the best education, the best atmosphere, and the best facilities to our children. Inflation rate is higher in the education sector and will remain higher in future too. Are you prepared for the same?

Children's Education from KG (Kinder Garden ) to PG (Post Graduation) requires effective planning to make their career goals come into reality. These plans are designed in such a way that amount is received in periodic intervals for their higher education. These plans can be customised as per are requirements with product combinations. This plan assures secured planning for children's education needs. It is always wiser to save money regularly and earn interest on the corpus rather than opting for education loans in advance stages nearer to the retirement for children education.

This Plan is suitable for the age group 0 to 12yrs

Additional If you add Premium Waiver rider in the plan then in absence of proposer the future premium under policy is waived off and child will receive amount at the age of 18,20, 22 and 25. Investment amount is flexible in this plan which can be decided based on required corpus for child education. Minimum investment can start as less as 1000 Rs monthly. There is no upper limit to the investment.

For Example

  • Sum Assured 25 lakhs
  • Child Age 2 years
  • Father Age 30 yrs, PWB Rider taken in the plan
  • Yearly investment 119644
  • Monthly investment 10194
  • Amount at the age 0f 18 years 5 lakh
  • Amount at the age 20 years 5 lakh
  • Amount at the age 22 years 5 lakh
  • Amount at the age of 25 years 42.12 lakhs
  • Loan Facility Available
  • Amount Received is Tax Free
  • Tax saving under Section 80 C upto 1. 5 lakhs

This plan will ensure money back continuously from age 20 to 25 years of age.

Four different options available to receive the amount.

  • Sum Assured 10 lakhs
  • For Example Child Age 5 years
  • Father Age 35 years
  • Yearly Investment 65256
  • Monthly Investment. 5557
  • Amount Received at the age of 20 years to 24 years 1.5 lakhs every year
  • Amount Received at the age of 25 years 11 lakhs
  • Loan Facility Available
  • Amount Received is Tax Free
  • Tax saving under Section 80 C upto 1. 5 lakhs

Amount in this plan can be taken in four Different options

  • 5 percent of Sum Assured
  • 10 percent of Sum Assured
  • 15 percent of Sum Assured
  • Lumpsum Amount at age of 25 years with no moneyback option

This option can be chosen based on the amount required to be received. If you want to have more money initially you can choose the 15 percent option.

This plan is suitable for people who wish to invest just once and do not wish to invest every year. This plan is suitable for gifting from grandparents to their grandchildren, Parents to children.

For Example

  • Child Age 3 years
  • Investment Period 15 years
  • Investment Amount 5 lakhs
  • Lumpsum Returns after 15 years will be 12.48 lakhs

Policy Term Minimum 10 years
Maximum Policy Term 25 years

  • Maturity will be taxable
  • Death Claims will be tax free under section 10 (10) D of Income Tax act
  • Tax benefit will be available partly and in only in the year of investment as it is single premium plan

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