Which Lic Policy Is Best For Child Education?


Which Lic Policy Is Best For Child Education
LIC Jeevan Tarun’s plan is particularly for children to provide both insurance protection and savings to meet their financial needs such as education and marriage.
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Which policy is best for child education?

Aviva Young Scholar Advantage Plan –

The Aviva Young Scholar Advantage Plan is a non-participating unit-linked scheme, and it is specifically designed to cater to the financial needs of the child. It gives complete protection to the child against any type of eventualities. This is often considered the best child education plan in India 2022, Features

  • It is a plan with comprehensive insurance coverage for the child.
  • In the case of the demise of the parent during the tenure, the plan also offers a waiver of future premium.
  • The plan also has an option for an add-on premium in the form of a top-up.
  • It offers an option to invest in seven different funds based on the requirement.

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What is the LIC child plan?

LIC Bima Jyoti – This LIC child plan is an endowment insurance policy that offers a guaranteed payout at maturity and a death benefit for the family if the policyholder dies. This amount along with bonuses can be used by the policyholder once the policy ends to finance their children’s higher education.
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Which is the best investment plan for child?

Different investment options for your child – Conventional products like fixed deposits may be insufficient to meet your child’s education expenses. You need to consider other products, such as equity funds, balanced funds, and shares. Based on the time horizon, you may choose among the following investment plans.

  1. If your child will require the corpus within a period of five years, opting for debt mutual funds is advisable. Such funds are able to deliver returns that are higher than the inflation quotient while offering liquidity.
  2. For long-term goals, you may combine different financial instruments. You may choose to invest in debt, equities, and gold. Exposure to the stock market is risky; however, equities offer the opportunity to earn higher returns in the long-term.
  3. Public provident fund (PPF) is also one of the best investment plans for child education. However, you must start this early and invest consistently in building a large corpus.
  4. Several insurance companies offer various children-focused products. You may opt for policies that mature when your child requires the money to pursue higher education.

It is also important to inculcate saving habits since early childhood. Teaching kids the basics of financial planning and involving them in the process is recommended. When planning to build an education fund, it is important that you evaluate the features, risks, and terms and conditions before making any decision.
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How much should I invest for my child’s education?

How much should I save for college monthly? – You should save as much as you can afford for your child’s education, without hurting your quality of life. Ideally, you should save at least $250 per month if you anticipate your child attending an in-state college (four years, public), $450 per month for an out-of-state public four-year college, and $550 per month for a private non-profit four-year college, from birth to college enrollment.
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Is LIC better than Sukanya samriddhi Yojana?

LIC Kanyadan policy and Sukanya Samriddhi Yojana are two schemes launched with a similar. LIC Kanyadan Vs Sukanya Samriddhi Yojana.

Criteria LIC Kanyadan Policy Sukanya Samriddhi Yojna
Sum Assured Limit 1 Lakh (Minimum) No limit (Maximum) Limited as per payment made
Payment Limit There is no limit Maximum of 1.5 Lakh rupees in every financial year

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Which LIC policy is best for middle class family?

Besides being a tax-saving policy, LIC New Jeevan Anand is the best LIC policy for middle-class family. As a participating and non-linked policy, this plan financially covers the policyholder and provides savings. This policy provides coverage for risks to the insured person even after maturity.
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Is Jeevan Tarun a good policy?

LIC Jeevan Tarun: Key Features, Benefits & Review LIC Jeevan Tarun offers a good combination of protection and savings component for a child’s future needs through this plan. The plan has been made keeping in mind the need to ensure a child’s bright future and saving money to fund their expenses like higher education, sports coaching fees etc.

It is a participating non linked limited premium pay plan Offers mix of protection and saving features in the plan for children Maturity benefit at age 25 for children 4 survival benefits options can be chosen in the plan Plan can be purchased by parent or grandparent of a child from ages of 0 to 12 years Date of risk commencement for children age of less than 8 years is 2 years. Those who have attained 8 years of age the risk will commence immediately.

Death Benefit On death during the policy term Before commencement of risk: In this case the death benefit will be only the sum of premiums paid excluding taxes and extra or rider premium. No interest will be payable on this amount. After commencement of risk : In this case, the death benefit will be payable by the company provided all premiums have been regularly paid and the policy is active.

The death benefit amount will be sum assured on death plus vested Simple Reversionary Bonuses and Final Additional Bonus. The sum assured is mentioned as higher of 10 times of annualized premiums or absolute amount assured to be paid on death which comes to 125% of the sum assured. Death benefit payable shall not be less than 105% of all premiums paid as on date of death.

The premiums are minus any taxes, extra or rider premium. Survival benefit : Survival benefit offers a fixed percentage of sum assured which can be selected during proposal stage. This amount will be payable on completion of 20 years and thereafter on each of next four policy anniversaries.

Policy Anniversary coinciding/ following completion of ages Percentage of Sum Assured to be paid as Survival Benefit
20 to 24 years Nil 5% each year 10% each year 15% each year

Source – www.licindia.in/Products/Insurance-Plan/jeevan-tarun Maturity benefit : If the life assured survives the policy term a fixed percentage of sum assured will be paid on maturity. The fixed percentage of different options are explained in the table below.

Maturity Age Option 1 Option 2 Option 3 Option 4
25 year 100% 75% 50% 25%

Source – www.licindia.in/Products/Insurance-Plan/jeevan-tarun Participation in Profits benefit : This plan is eligible to participate in corporation’s profits and receive Simple Reversionary Bonuses or any final additional bonus when a claim is made either by death or maturity provided the policy is active.

Minimum Sum Assured INR.75,000
Maximum Sum Assured No Limit
Minimum Age at entry 90 days (last birthday)
Maximum Age at entry 12 years (last birthday)
Minimum/ Maximum Maturity Age 25 years (last birthday)
Policy Term or maturity 25 Age at entry years

LIC Premium Waiver Benefit rider : LIC Jeevan Tarun is offering an optional rider for added protection for an extra premium. If the subscriber of the policy meaning the parent or grandparent who is paying the premium on the policy dies then all the future premiums will be waived off and the policy will continue to be active till the policy term chosen. Revival period : The policy can be revived if lapsed. The revival period is less than 2 consecutive years since the last date of premium. Free Look period : Free look period of 15 days is offered in this plan from the date of receipt of the policy bond.

The policy can be returned to the corporation stating the reasons of objection. On receipt of the same, the policy will be cancelled and amount of premium paid will be returned minus the expenses incurred. Surrender Value : To build the surrender value the policy needs to be active for at least two consecutive years if policy term is less than 10 years and 3 consecutive years if policy term is greater than 10 years.

Guaranteed surrender value will be percentage of total premiums paid excluding extra premiums and premiums for riders. Loan on Policy : A loan can be availed on policy as per the accumulated surrender value and the company’s terms and condition which may be subject to change from time to time. Suicide : If the policyholder commits suicide within 12 months from the date of start of policy then no death benefit amount mentioned in the policy is payable. The company will only return 80% of the premiums paid excluding any taxes, extra premium and rider premium other than Term Assurance Rider, only if the policy is in force. LIC Jeevan Tarun is an by which is aimed to secure children’s future for higher education and other needs. The plan offers flexibility with regards to payment disbursement options with different percentage of payouts. The plan has been well customized with eligibility for bonus additions to help the fund grow and waiver of premium benefit rider to give protection for child’s future if the proposer of the policy dies during payment paying term. How can I revive my policy? You can revive your LIC Jeevan Tarun Policy within 2 years from the date of unpaid premium. All you need to do as a policyholder is pay all the due premiums along with interest (compounding half-yearly), if any. However, it is important to note that if you have any riders attached to your base plan, the same shall also be revived and there shall be no change in treatment for them, unless specified otherwise.

Can I get a loan against this policy? Yes, it is possible to get a loan against the policy only if your plan has acquired a surrender value. What are the bonuses offered by this plan? LIC Jeevan Tarun participates in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses, which is declared as per the experience of the Corporation only if the policy is inforce.

According to the Plan, final additional bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity. : LIC Jeevan Tarun: Key Features, Benefits & Review
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What is SBI child plan?

What are the Features Offered Under SBI Life- Smart Champ Insurance? – This SBI life child plan is an individual and non-linked participating insurance product, which is designed to secure the educational needs of the child in the prospective times. Listed below are the key features of SBI Life- Smart Champ Insurance:

Once the child reaches 18 years of age, avail the smart benefits into four equivalent yearly instalments. In case of any adversity or misfortunate incident, it offers a premium waiver and instant payment of the sum assured. Throughout the policy period, the cover for life and accidental total permanent disability will be provided. An alternative to paying the limited premium or one-time single premium. During the end three years of the policy, an option to obtain the discounted value of the instalment that is future due to the smart benefits including the terminal bonus.

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Is it good to invest in child plan?

You Can Avail Comprehensive Tax Benefits – To top off the list of benefits that you can avail from a child insurance plan, there are comprehensive tax deductions that you can avail on your investments. The premium amount invested under a child education plan is eligible for deductions under Section of the Income Tax Act 1961.
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What is minimum age for LIC policy?

Eligibility Conditions and Other Restrictions – 1. Eligibility Conditionss and Other Restrictions

Minimum Basic Sum Assured Rs.1,50,000
Maximum Basic Sum Assured (The Basic Sum Assured shall be in multiples of Rs. Rs.10,000/-) No Limit
Policy Term 12 to 20 years
Minimum Age at entry 12 years (completed)
Maximum Age at entry 45 years (nearer birthday)
Maximum Maturity Age 65 years (nearer birthday)

Date of commencement of risk : Under this plan the risk will commence immediately from the date of acceptance of the risk including minor lives.2. Payment of Premiums: Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through ECS or through salary deductions) over the term of policy.

AGE(in yrs.) TERM (in yrs.)
12 15 20
20 88.10 69.50 49.70
30 88.45 70.00 50.75
40 90.05 72.20 54.40
45 92.00 74.65 57.85

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How can I save money for my child education?

Second: Which Mutual Fund Category you should pick? –

Now that you know why you should invest in mutual funds, the next thing you need to decide is the mutual fund category where you should invest in. The answer to this depends on how much time you have before you need the money. Since your children can’t delay going to college, you need to make sure you are putting money in the category recommended for your investment horizon.1) If your child’s college admission is 3-5 years away: As you will need the money in the medium term, you should go for Aggressive Hybrid Funds.

The funds in this category invest up to 75% in equity and remaining in debt. This ensures you get both the growth of equities but also have relatively lesser volatile returns as the debt part brings stability and also protects the downside.2) If your child’s college admission is 7+ years away Since you are investing for the long-term, you should go for pure Equity Funds.

Now, depending on your risk appetite and how comfortable are you with volatility in your portfolio, you can pick from these categories Multi-cap funds :- These funds have a go-anywhere mandate and so invest across sectors and company sizes. This ensures you get a diversified portfolio, and also you don’t lose out on any growth opportunity markets provide.

  1. Amongst the 3 options, these tend to be least volatile.
  2. See top Multi-Cap Mutual Funds here,
  3. Mid-cap funds :- These funds invest the majority of their money in the Mid-cap companies of India.
  4. The companies in this space are some of the fastest-growing brands in India and for this reason, can deliver market-beating returns over the long term.

However, the gains in this space tend to be volatile as during severe market conditions; these companies get affected far more than large companies. See top Mid Cap Mutual Funds here, Small-cap funds : These funds invest the majority of their money in the smallest companies in India.

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    Where to invest for child future?

    For parents, saving for their children’s future is among their top priorities. And rightly so. A good course from a good college can set a child’s career on the right track. While there are several investment options available to secure your children’s future, these are the top three: · Sukanya Samriddhi Yojana (SSY): for daughters only.

    1. · Equity mutual funds (MF): for both sons and daughters.
    2. · Public Provident Fund (PPF): for both sons and daughters.
    3. SSY and PPF Since both are debt instruments, we will discuss them together (though Sukanya Samriddhi is only available for daughters).
    4. When it comes to interest rates, SSY is better at 7.6 percent vs.

    PPF at 7.1 percent. But that shouldn’t be the only reason to pick SSY over PPF. Also read | Last minute tax-planning tips An SSY account can be opened for a girl child up to the age 10, It has a 21-year tenure (or it will close post her wedding). Deposits can be made till the 15th year.

    The SSY corpus will still generate returns from the 16th to the 21st year. One cannot make any additional contributions from the 16th to the 21st year. The entire SSY corpus is locked-in till the girl child attains the age of 18. Thereafter, only up to 50 percent of the amount can be withdrawn for educational needs.

    Hence, liquidity may be an issue. What if your daughter’s higher education requires more money than the available 50 percent of the SSY corpus? You have more lying there but it’s not available at your time of need. Also read | Should you invest in children-specific mutual fund schemes? Nonetheless, there is some merit in SSY, and it gives better tax-free returns.

    But if liquidity after the 15th year is a concern, then having a PPF account is also advisable, as one can withdraw funds from one’s PPF account after 15 years. PPF provides greater flexibility and can be used as an investment tool even after the daughter’s marriage or the closure of her SSY account.

    Equity MFs But neither PPF nor SSY are the best options if your daughter’s higher education goals are several years away. Why? Also read | High on returns, low on volatility: These mutual funds offer a winning combo That’s because both PPF and Sukanya are long-tenure debt products.

    Given the high cost of education and the inflation these days, it’s possible that the savings in SSY and PPF alone will be unable to match the pace of inflation. The result will be inadequate savings. And that is something that you would never want as a parent. Also read | Zerodha’s Nithin Kamath, who started trading at 17, has this to advice to young kids Sound investment logic demands that when investing for long-term goals, it’s better to invest more in equity as that is the only viable option to generate inflation-beating returns in the long term.

    Doing so through a disciplined SIP (systematic investment plan) in equity funds is your best bet. How to split your money between MFs, SSY and PPF? Here are a few thumb rules to follow: · If you are ultra-conservative and the goals are 15-plus years away, then keep it simple and give your 100 percent to SSY and PPF.

    • · If your children are older, the long lock-in periods of SSY and PPF may not align with your goal requirements.
    • In that case, you can pick a few debt MFs.
    • · If you have a moderate risk appetite, then allocate 50 percent to equity MFs, and split the remaining 50 percent between SSY and / or PPF.
    • · For moderately aggressive to aggressive investors, it can be 80-100 percent in equity funds, and the remaining (if any) in SSY / PPF.

    If you are looking for some real numbers to suggest how much to invest, below are a few: · If you need to accumulate Rs 75 lakh in 15 years, then invest Rs 18,000-19,000 per month in an 80:20 equity MF:debt split. · If you need to accumulate Rs 50 lakh in 10 years, then invest Rs 24,000-25,000 per month in a 65:35 equity MF:debt allocation.

    · If you need to accumulate Rs 35 lakh in 6 years, then invest Rs 36,000-37,000 per month in 40:60 MF:debt allocation. Also read | Turning 18 or just attained major status? Now, make your ‘pocket money’ grow with you Thus, the earlier you start, the better it is. For instance, if your target is to reach Rs 50 lakh in 10 years then you need to invest Rs 24,000-25,000 monthly at a roughly 65:35 MF:debt split.

    But if you start earlier and have 15 years to reach the same goal, then you only need to invest Rs 12,000-13,000 per month. Insurance is also important But just investing adequately every month is not enough, if god forbid something were to happen to you.
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    How can I double my money in 5 years?

    Double your money with these five tried & tested strategies Earning money and doubling it is something everyone desires. People always look for ways to invest, hoping to double their money as early as possible. While there are many ways to multiply your money, it mostly depends on risk and time.

    1. One might double money in a few minutes in a casino or in trading options or Futures.
    2. But these kinds of investments come with a lot of risks, you might lose all your capital in the blink of an eye.
    3. Doubling money needs patience and suitable investment options, therefore, take your time and invest.
    4. The return on investment differs from person to person as it is subjected to factors like market conditions, inflation, economic reforms, demand and supply, and others.

    It is essential to note that you can’t expect magic to happen to double or triple your money. Thus, we have gathered five strategies to help you in your journey. Mutual fund: Mutual fund is a kind of investment instrument that gathers money from various investors to invest in stocks, bonds, and short-term debt.

    • There are many types of mutual funds like ELSS (Equity Linked Savings Scheme), debt-oriented, equity-oriented, and balanced mutual funds.
    • Investors buy shares in mutual funds, and each share represents an investor’s ownership in the fund and the returns it gives.
    • Mutual funds offer higher returns on investment than other instruments; however, there is equal risk involved.

    The returns on mutual funds usually depend on the period of the fund; the longer the term, the more the returns. If one looks at extended time frames, equity mutual fund schemes can double your money in 3 to 5 years, depending on their performance. Similarly, with a conservative risk profile, investing in debt instruments can take up to 10 years to double your money.

    Stock market: The stock market is a platform where investors buy and sell shares of companies that are held publicly. Investments in the stock market can certainly give a higher rate of return. An average stock market return is around 10% per annum, based on the S&P 500. Investing in reputed and profitable companies can increase the chances of doubling your money over a certain period.

    However, it is essential to understand the technicalities of the stock market before investing. Real estate: Investing in real estate is a traditional way to double the money. For many, it is not an attractive proposition at present, as investing in property requires huge capital.

    • The catch here is that the value of a property can double in 6 to 7 years, and it can generate a regular income in the form of rent.
    • Though a considerable capital investment initially, it will indeed generate rewards in the long run.
    • Fixed deposits: Fixed deposit (FD) is another form of traditional investment that has been one of the easiest ways to earn good returns.

    A fixed deposit is a financial instrument that offers investors a higher rate of interest than regular savings account until a fixed term. It is the safest investment option that guarantees returns. Also, the interest remains unaffected by the market, unlike other investment instruments.

    There is no risk of losing the principal amount too. National Saving Certificates (NSCs): Like FDs, NSCs are also a traditional form of investment. NSCs are issued by the Indian Postal Department and are considered one of the safest options for investment if you are not a risk taker. These certificates have a fixed tenure and a fixed rate of interest.

    We all love to increase our wealth and tend to find ways to double our money. While it depends on the person’s risk-taking ability and time, it is imperative to have a detailed understanding of each investment instrument before investing. Ample opportunities are available to multiply your wealth, depending on your risk appetite, time, and willingness to learn personal finance for a secured future.
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    Which education has the highest return on investment?

    Insider’s experts choose the best products and services to help make smart decisions with your money ( here’s how ). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

    People often argue about the value of a college degree, but the numbers prove that someone with a higher level of education will typically earn more than someone with less education.An associate’s degree has the highest ROI overall, though other degrees will earn you much more over time.Remember that each degree major or concentration leads to different job opportunities with different income prospects. Read more personal finance coverage,

    Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you’re on the go. There’s a big debate over the value of a college degree. Some education advocates urge every young person to earn at least a bachelor’s degree.
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    What is a good age for kids to start learning about money?

    Children begin to form their lifelong money habits as early as preschool. Behavioral researchers from Cambridge University encourage parents to start teaching their kids about money as young as 3. And there are developmentally appropriate ways to help you kids begin to understand personal finance and credit cards at every stage of childhood,
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    Which type of policy is best?

    Term Life Insurance Plans –

    Term insurance is the purest and most affordable among the types of insurance policy in which, you can opt for a high life cover for a specific period. You can secure your family’s financial future with a term life insurance plan by paying a low premium (term insurance plans generally do not have any maturity value, and thus, offer lower rates of premium than other life insurance products.) If anything happens to you within the policy period, your loved ones would receive the agreed Sum Assured as per the payout option chosen (some term insurance types offer multiple payout options as well)

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    Which approach is best for education?

    2. Experiential learning – If you haven’t heard of experiential learning before, it’s the idea that learning is a product of experience. If it sounds like something that you might be interested in, we have a whole article that explores how to apply experiential learning in the classroom and beyond.

    Concrete experience. This is when the learner has a new experience, such as riding a bike for the first time. Reflective observation. After the concrete experience, the learner must reflect on their actions and watch others perform that action. Abstract conceptualisation. The next step involves the learner making sense of their reflections and making a plan for going forward. They might come up with next steps and seek insight from experts. Active experimentation. During the final stage, the learner will consider their reflections and previous lessons and then retry the original experience to see if any progress has been made. This will lead to a new concrete experience, and so the cycle restarts.

    Experiential learning is a great teaching method because it encourages creativity, helps students learn from mistakes, fosters reflective thinking, and prepares students for future experiences. It can be effective for several subjects, especially during science experiments, sports coaching, and group projects.
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    Which policy plan is best?

    Top 10 Life Insurance Policies in India

    Plan Name Plan Type Entry Age (Min/Max)
    Aditya Birla Sun Life Insurance Term 18 years to 65 years
    SBI Life eShield Term 18 years to 65 years
    HDFC Life Click 2 Protect Plus Term 18 years to 65 years
    Aviva i-Life Term 18 years to 55 years

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