India Admissions

Different types of Education policies in India | Points to be remembered while taking the Education Policies

In the present day situation, higher education had become compulsory and it has become a burden for the parents to save large amount of money. As the higher education rates are increased, it has become an extra burden for the parents. It is a difficult question for the parents to estimate the amount for their children higher education. Generally they want their children to study medicine or engineering but their children choice may be different. The expenses are compulsory for any course and so there are many options for those who start the investments at the early stages only. It is better to invest at least now as it is required for the higher education of the children. They can select the investment plan based on the expenses and the related terms are explained.

Child benefit mutual fund:

• Gift plan:  This is a place where the investment is done for the children from    5-18 years and equities are given more quotas.
• Study plan: This plan is suitable for the candidates who want large amount of money for 3-5 years and the loan schemes are more here.
• The lock in period is more than 3 years for few funds.
• The investments in the form of loans are mostly in the form of hybrid ones.

Traditional/ guaranteed child plan:

• Money back: They can get the money when their children meet an important point in their career.
• Endowment: They get a large amount of money at a time.
• Guaranteed plan: There will be a guarantee fro the total amount received.
• Bonus linked plan: There will be a bonus based on the work of the company.

Ulip child plan:

• They can withdraw the money based on the need and they can also stop the payment of premiums after the fixed duration of time.
• They can increase the trust by investing the amount in loan and equity processes.
• We can select the premium and sum assured in this plan where as the premium is selected on the sum assured in the traditional plan.

Points to be remembered while taking the Education Policies:

There are many aspects to be remembered while taking a policy. We can neglect he life coverage policies and we should take the parents coverage policy. We should also check whether weaver of premium is there or not. There is no need to pay the remaining premiums if anything happens to the policy customer but the policy continues. The traditional plans are suitable for the children of age 0-5 years and these are not useful for the higher studies. Ulips is the better option and we can get the tax concessions up to Rs.100000 under section 80C. We should select the ulips only on the future use.

While selecting the mutual funds:

• 3-5 years duration is suitable for the portfolio mutual fund.
• The lock in period may be from 3 to 18 years for some funds.
• Risk is there unto some extent.
• There won’t be any tax concessions.

Other options:

There are other options like fixed deposits, investments, small savings etc. most of these are not having tax concessions and so we can concentrate on the bonds, non convertible debentures etc.

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