Saving for your child's education - Opt for a Money Back Plan

A short while ago i had been talking about various types of insurance. I had covered Term Plans, ULIPs, Health Insurance. However there is another type of insurance that you must have heard about - Money Back Insurance Plan. What exactly is this plan? Why should we go for it?

Money Back Plan is a similar to an endowment policy. While in an endowment policy you get returns after onlly after maturity, in a Money Back plan, it is paid at certain intervals during the policy term. Consider a Money Back Policy from LIC. Under this you get premium paid back to you after every 5th year. That means if you buy a policy of 10 lakhs for 16 years at a premium of 48000 (approx), every 5th year you get back 1.5 lakhs (15% of the sum assured). This is handy in taking care of expenses like you child's education or daughter's marriage, etc.

Apart from this you also get a life cover to take care of any emergency needs. And if you survive the entire policy term (we pray for that), you get back the remaining amount with bonus additions (which varies from 6% to 10% of sum assured).

Source: Times of India, Pune Edition

1 comment

Aviva India said...

Planning for your child’s education now becomes simpler
with Aviva’s ‘Educost’

A unique online insurance calculator that requires no download, no registration


With the cost of higher education constantly rising, it has become difficult to calculate the amount you would require, after 18 years, to help your child become a successful professional. Keeping this need of parents in mind, Aviva has introduced a unique online insurance calculator, “Aviva Educost” to measure the appropriate investment requirement by young parents so as to enable to plan in advance for their child’s higher education. It is an exclusive and simple tool that will help to calculate the amount you would require to secure your child's education. This free-to-use application comes with 20 career options and a comprehensive list of 145 institutes across the world to choose from. Factoring in the rate of inflation, hidden education costs like coaching/preparatory fee and application charges, cost of living if your child moves to another city or abroad, along with course fees, Educost gives you a fairly accurate idea of the financial implication of your child's higher education.

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