What are Child Education Insurance Solutions?
Child Education Insurance Solutions are insurance plans that take care of your Protection and Savings needs for securing the future of your children. As a parent, one of your most important goals would be to make sure that your children have a bright future and lead their lives comfortably. These solutions can help you achieve that by saving for your children’s higher education at a prestigious university.
In these solutions, you pay your premiums for a specified period. Once your policy term ends, you receive a lump sum amount called the Maturity Benefit. In case of an unfortunate event during the policy term, the company offers your nominee the Life Cover amount. The company also pays your premiums for the remaining policy term to ensure that your children’s future is always secure. Such benefit is available provided all due premiums are paid.
Secure your child's education with us
A plan that grows your investments and secures the educational milestones of your children.
- Easy access to your money
- Choice of lump sum pay-out and waiver of premium
- Rewards of Wealth Boosters and Loyalty Additions for long term investments
- Security of your loved ones in your absence
4 Reasons to buy a Child Education Insurance Solution
Rising cost of education: Paying for your children’s higher education is one of the biggest expenses that you may have to take care of. With ever increasing costs, it is extremely important to prepare early to ensure that your children’s future is secure without a financial strain. For example, an MBA course that costs 18.5 lakh# today, will cost 36.39## lakh 10 years from now.
#MBA fee for 2 years flagship course of IIM – Ahmedabad
##Assumed annual inflation: 7%
Smart Benefit: Unlike an ordinary insurance plan, your Child Education Insurance Solution doesn’t just end once the Sum Assured or the Life Cover amount is paid. With the Smart Benefit, all future premiums will be paid by the company on your behalf in your absence. Your child will receive the fund value at the end of the policy term, which can be used to support their future. Thus, with a Child Education Insurance Solution, investment for your child’s future continues no matter what. This benefit is available only if all due premiums are paid.
Flexibility of Investment: Child Education Solutions offer flexibility and control of your money through the following ways:
1. Fund Switch – An option to move your money between equity and debt funds
2. Premium Redirection – An option to invest your future premium in a different fund of your choice
3. Partial Withdrawal – An option that allows you to withdraw a part* of your money to take care of important milestones in your child’s education
4. Top-up – An option to invest additional money to your existing savings
Tax Benefit: With these solutions, you can reduce your taxable income by up to 1.5 lakh under Section 80C and save taxes**. Even shifting your money from equity to debt or debt to equity is tax-free**. Additionally, money you or your family get on maturity or death is also completely tax-free**.
*Partial withdrawals are allowed after the completion of five policy years provided monies are not in DP Fund. You can make unlimited number of partial withdrawals as long as the total amount of partial withdrawals in a year does not exceed 20% of the Fund Value in a policy year. The partial withdrawals are free of cost. DP Funds refer to Discontinued Policy Funds and consist of money from lapsed policy.
**Tax benefits under the policy are subject to conditions under Section 80C, 10(10D) and other provisions of the Income Tax Act, 1961. Service tax and applicable cesses will be charged extra by the redemption of units, as per prevailing rates. Tax laws are subject to amendments from time to time.