What Are The Features of A Child Education Plan?

Jul 04, 2018 | 5 months ago | Read Time: 3 minutes | By iKnowledge Team

Child plans are essential to meet the needs of providing your child with good education. They ensure that cash flow doesn’t stop at any crucial stage of your child’s growth.

The costs of higher education are on the rise. To make sure your child gets the best education, you need to plan early on. For instance, let’s assume your child is 7 years old and dreams of becoming an automobile engineer. Today, becoming an engineer costs several lacs of rupees. You want to support his dream but the cost of the course makes you wonder how you will manage to raise the funds when it’s time to enroll.

To have available funds at the time when the actual need arises, it is necessary you invest for your child today.

Here are the features of a child education plan to help you make an informed decision:

  • Minimum investment tenure

In a child investment plan, you need to make investments for at least 3 years. The tenure can then be increased in multiples of 3 months. The longer the plan, the higher the payout at maturity.

  • Minimum deposit amount

To start your investments in a child education plan, the minimum amount you need to invest is Rs. 500, and thereafter, increase it in multiples of Rs. 100. Make use of an education plan calculator to plan better.

  • Funding in Investment Phase

You can send your regular premiums through a standing instruction on a parent’s bank account. You can also do it either by depositing a cheque or cash.

  • Payouts

The payouts you want to receive on your child investment plan can be received in the following ways:

  • Quarterly
  • Annually
  • Minimum tenure of the phase
  • 12 months and thereafter multiples of 1 month

Child Benefits Plans are beneficial in many ways. If you are looking to invest and insure your family at the same time, you may want to consider the iMaximise plan from Aegon Life. Along with an investment plan for your child, it gets you insurance too.

iMaximise Plan

iMaximize is an online Unit Linked Insurance Plan (ULIP). It offers a combination of market-linked returns and financial cover. It has been designed to offer you a considerable degree of flexibility, which makes it well-suited for you if you are a first time investor or a market expert.

It also has features that cater to your child’s needs, in your absence, through the Triple Benefit payout option. This option provides financial cover in stages and comes with no allocation charges thus allowing you to get maximum returns from your investments.

The benefits of the iMaximise plan are as follows.

Benefits Upon Maturity – You get the full fund value of your plans.

Income Tax Benefits – Premiums up to Rs. 1,50,000 qualify as deductibles from your taxable income every year under Section 80C. Also, the maturity amount that you receive are exempted from taxes under Section 10(10D).

Death Benefits – If you opt for a Single Premium plan, you would get the higher of the Sum Assured or Fund Value. In case you choose a Regular Premium plan, you would get 2 options from which you can decide how the death benefit would be given to your nominee.

Option 1 – 105% of all paid premiums or Sum Assured, whichever is higher.

Option 2 – Higher of Sum Assured or 105% of all premiums paid + all regular payments waived and paid by the company + annualised premium paid to nominee at the start of each policy year.

Conclusion

Arranging for funds for your child’s education well in advance is crucial. Child Education Plans like iMaximise Plan from Aegon Life can help you through the planning and implementing by starting with a minimum amount of Rs. 2000 every month. Sow the seeds of investment now and reap the rewards of it 15 years hence as your child gains admission in his favourite college.

Advt. no.: IA/Jun 2018/4118


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