Child Plan or Education Insurance plan – Do I really need it? - PowerPoint PPT Presentation

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Child Plan or Education Insurance plan – Do I really need it?

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Save systematically and secure the financial future of your child by investing in Child Plan and let your child enjoy today without worrying about tomorrow. – PowerPoint PPT presentation

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Title: Child Plan or Education Insurance plan – Do I really need it?


1
Child Plan or Education Insurance plan Do I
really need it?
2
  • An insurance plan taken on the life of a child
    (where the beneficiary on death of the child is
    the parent) is NOT a child plan. Some agents
    sell this to (even well-educated) customers as a
    child education plan, but such a plan is very far
    from it. Such a plan is just an investment plan.
    Where is the question of buying insurance with
    your child as insured? And what is the need for
    an education plan if something happens to the
    child? Please understand this first.

3
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4
  • A real child plan (or education insurance plan)
    is an insurance plan that ensures that the child
    is financially protected if the parent dies.
    Remember that this is an Insurance plan and
    therefore different from all others which only
    help you to build a fund for your child over
    time. The insurance plan does both fund creation
    as well as protection.

5
Who can take a Child Plan?
  • One (or both) of the parents can take a child
    plan by taking an insurance on their (i.e.
    parents) life. If the parent dies, in addition
    to the life insurance paid out immediately to
    child (or an appointee if the child is a minor at
    the time of death of the parent), a certain the
    premium gets contributed into the policy by the
    insurance company and an additional amount
    (usually guaranteed) is paid out during the key
    milestone years such as when the child is in Std.
    X, XII, or at Graduation and/or Post Graduation,
    marriage, etc. This ensures that the child does
    not suffer financially because of the death of
    the parent.

6
  • Cost of education is growing much higher than
    inflation rate of 5-6. In fact, think about it
    yourself. School and College fees today would
    be at least 15-20 times higher for you, the
    parent, than what it is today. And fees for
    professional courses such as MBA, MBBS,
    Engineering, are already so high even today. Can
    you imagine how much it will go up by in the next
    18-25 years when your child will need it?

7
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8
  • Child education plans insurance India Assocham in
    a recent survey called Steep Rise in Education
    Fees highlighted that school expenses, including
    tuition fees, have doubled to Rs 1.20 lakh per
    annum from 2005 to 2011 on a single child. The
    school-related expenses include uniforms, books,
    stationery, sports activities, contributions to
    schools funds, school trips, transport, school
    aids, tuition, and of course, extra-curricular
    activities that are needed for all-round
    development. The survey goes on to mention that
    about 85 of parents spend more than half of
    their net income on expenses related to their
    childrens education and development, placing
    significant pressure on their overall family
    budget

9
  • There is only one way you can ensure that your
    child (or children as the case may be) get the
    necessary educational support, and that is by
    planning for this expense. Most of would have
    planned something or the other some of us may
    have put savings into a Recurring Deposit (RD),
    some into a Mutual Fund (MF), and some of us in
    an Fixed Deposit (FD). The fact is that to reach
    the amount of money required 15-20 years from
    today, you need to regularly keep investing money
    to build the fund over time. With a good rate of
    return, and some good planning from your side,
    you will surely be able to make it to your goal.
    I really hope you do.

10
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Source https//www.mintwise.com/blog/child-plan-e
ducation-insurance-need/
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