Post on 05-Apr-2018
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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.