children’s education planning.pptx

8/2/2019 Childrens Education Planning.pptx

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To facilitate the best potentialupbringing for children.

To ensure the best future .

To fulfill stronger desires by providing thebest of everything.

To plan for all their future necessities areproperly taken care of.


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Planning for Childrens Future{Education and Marriage}

Cost of education has been rising faster than

Inflation.

Increasing opportunities in India as well as

abroad.

This requires adequate money for payingCollege Fee Building Fund, Hostel Fee, Books

and Equipment's.

Ready to setup own industries or business or


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financial productPlanning depends on the Riskand Safety of

Investment and time available.

Better to start as early as possible.

Adequate time choice to invest in equity.


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Goal Establishment1)Cost of education

2) Planning

3) Monitor

4)Options

5) Insurance Policies

6) Balanced Approach


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FeaturesBank

Deposi

t

Education

Insurance

UnitPortfolio

I. Safety ofInvestment andReturn

Principleand

interest

Part of maturityvalue is

guaranteed

No and thereturns are

variable

I. Additional

Loan canbe

Providesrider benefits

to parents

life to waivepremiums in

Flexibility

and control


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Safest option RD for 10 years

No tax deduction

Lump sum amount will be in hand


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Parents incur

5.2 to 5.5 % of

income on

education


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Its like Endowment policy (on maturity theamount is returned).

Premium should be paid by parents for

the tenure.

If parents dies, child gets the sum

assured.

If parents survives maturity amount will

be paid on date on maturity.


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I.Endowment PolicySavings with protection cover

Participating or Non-participating

Total amount of benefits at maturity depends

on insurance companys performance


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Combination of elements of investment

and protection base

Top-up monthly contribution as incomeincreases

For aggressive investors

More risk No guarantee on returns

Switch facility from equity to debt.

No. of withdrawals durin tenure


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Affordable premium.

Flexibility to saving for gradually

increment.

Ensure payer benefit rider option.

Adequate sum for higher education cost.

Rider benefits like Health insurance ,


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Rider benefits like Health

insurance , accident cover.

Competitive pricing and returns.

Assured amount for child incase of

parents death.


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Ensure Payer Benefit Rider option

Monitoring funds

Policy qualifies for tax incentive or

not?

Affordable premium

Do not add unnecessary coverage


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Data collection about policy.

Compare offers from major insurance

companies.

Choose Insurance Plan that best suits childs

dream.


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Under section 80E of IT Act interest or

principal +interest is 40000 whichever is less

can be deducted..

From Finance Act 2005 entire interest from

taxable amount can be claimed..

Only loans taken for spouse and children willbe considered.

children’s education planning.pptx

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