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Insurance Plans 21411 views March 18, 2020
As parents, it is your responsibility to let your children reach the sky even in your absence so that there is no worry about the child’s education in the future. Firstly, take a look at the latest data related to the child population India and the costs associated at different stages of a child’s life today.
India is the largest in the child population in the world. As per Census 2011, India, with a population of 121.1 Cr, has16.45 Cr children in the age group 0-6 years and 37.24 Cr in the age group 0-14 years which constitute 13.59% and 30.76% of the total population respectively. The Gross Enrolment Ratio (GER) at the Primary level is 99.2% and in Upper Primary, Secondary and Senior Secondary Level is 92.8%, 80.0% 56.2% respectively. As per the UNESCO report, the number of Indian students enrolling themselves into degree programs abroad has doubled from 134,880 students in 2004 to 278,383 in 2017.
Now coming to the cost of education in India, in the primary sections itself cost is about Rs.1100 in government schools and around Rs.10600 in private schools. Engineering education today in some premier institute costs about Rs10 lakh, medical education costs around Rs60 lakh in private college and if one plans to send his child abroad then a minimum of Rs. 50 lakh needs to be kept aside.
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You definitely need to plan ahead and start saving sooner till it is too late to arrange funds for your child’s expenses at different stages of life. Children have started going to school from an age as early as 3 years. Next comes their college admission, higher studies, and marriage. Have you started saving for all these expenses?
Did you ever think of a situation where your 18year old daughter wants to go abroad for higher studies but you had to convince her to cancel it because you do not have enough savings? You had already spent so much on her education.
However, if you start saving in a more organized way, you can plan in such a way so as to spend on your daughter’s school admission, college admission, higher education in India or abroad, professional studies and even marriage.
A perfect solution to your problem is SBI life insurance 5 years plan for child
A Child plan is the best gift of a secured future that you can give your child, a helping hand to secure your child’s future. It is a mixture of insurance and investment that helps you to plan for your kids’ future financial needs at the right time of life. It is an insurance plan wherein the policyholder is the parent and beneficiary is the child. The sum assured is available on maturity either under an endowment plan as a lump sum payment at a specific required time of child’s life (like college admission or marriage) or under a money-back plan as periodical payments at different stages of a child’s life (like school admission, college admission, marriage).
SBI child insurance plan is an insurance policy without any rider. It secures your child’s future needs either under an endowment plan through the payment of a lumpsum amount at one point of your child’s life or under a money-back plan through payment at different intervals of your child’s life to ease your financial stress at all the major stages of your child’s life. SBI life insurance 5 years plan for child allows you to pay your premiums during the first five years of the plan while the policy term continues for the number of years you have taken it.
There are various reasons for selecting an SBI life insurance 5-year plan for the child, some of them are as follows:-
SBI life insurance offers the following type of SBI life insurance 5 years plan for child-
This is a participating individual life insurance product wherein the policyholder can get himself assured against permanent disability from an accident or death. If any such event occurs then his child nominee will receive the assured sum and also a bonus at 18 to 21 years of age of the child. This will take care of the future education of the child as you can opt for a premium of 5 years only.
The policy term for a Smart Champ plan under SBI Insurance 5 years plan for child is minimum 8 years and maximum 21 years.
Minimum Sum assured:
The minimum sum assured for a Smart Champ plan under SBI Insurance 5 years plan for child is Rs.100,000.
This is a unit-linked policy wherein the insured secures his child’s education even in his absence through insurance coverage plus other gains of the financial market to build up the corpus for the child’s future. This is a good choice is you are looking for SBI Insurance 5 years plan for child.
The premium paid till Rs 1,50,000 per annum can get you a deduction under Section 80C provided the premium paid is more than 10% of sum assured.
The maturity benefit is tax-free under Section 10(10D) provided the sum assured is at least 10 times the sum assured.
These short-term plans are reliable coverage benefits and will take care of your small budget and provide you a flexible, easy to understand the plan. So, if you are a person who has a habit of saving his income, then instead of using this saving to meet your short-term needs you may better invest your money in SBI Insurance 5 years plan for child in order to secure your child’s future.
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