• 21 OCT 2016

    Plan For Your Child's Education At The Top B Schools

    At one point of time, parents used to dream of their children becoming a doctor or an engineer. These days they dream of a B-school degree for their kids. This is rightly so, considering that the top B-schools are always in the headlines for getting a number of their students placed in blue chip companies with mind-boggling salaries.

     But how does one get into a B-school?

    B-schools follow a pattern of admission, post entrance examination. So, the government of India conducts entrance tests like CET, CMAT, CAT etc which are attempted by lakhs of students across the country. Based on the scores that the student gets, he/she applies for admission to various colleges across the country. The college then decides on whether or not to admit the student. After admission, the student goes through two years of classroom education with projects and summer jobs thrown in between.

     Apart from various exams getting into B-schools also involves fees.

    The fees for top 10 B-schools like IIM's, XLRI's, ISB, etc. may range from Rs 12 to 14 lakhs p.a. The fees for any good B-school can start from Rs 6 lakhs p.a. This can be a challenge for most middle-class parents. Not everyone has the wherewithal to put their children into these top B-schools. And what about the student? The most heart-breaking thing for your child would be losing out on admission in a top B-school due to financial inability. Many students opt for education loan but the repayment of the loan could be a financial burden and your child may end up paying too much interest for the same.

     How do you as a parent ensure that this is not the case with your child?

     Education planning

    By financially planning in advance so that you have the funds when you need them the most; at the time of education of your child. A plan that provides guaranteed returns is one of the best ways to save for your child’s education. These plans provide a clear information to the policyholder with regards to the returns he/she will receive. How does this plan help you to provide you with the funds to give your children the dream education that they aspire for?

    An example

    Let's take a simple scenario to help you understand the plan. Let’s assume you are 38 years old with a 3-year-old child. You have decided that you need approximately 10 lakhs 20 years from now, to fund your child's B-school education. To attain this goal, you can buy a 20-year plan with annualized premium of Rs.40000/- for a 12-year premium paying term. This means that the policy remains in force till 20 years but you pay the premium for only 12 years. From the 16th year onwards till the end of policy term, there will be Guaranteed Loyalty Additions or what you call bonus, depending on annualized premium, premium paying term, entry age and gender of the life assured, which will be added to the maturity value. When the policy matures at the completion of 20 years, you will receive Rs 10,96,800/-. This will provide you with the funds that you require when your child is 23, which is when he will need the money for his B-school degree. This plan also provides a life – cover, God forbid if you meet with an untimely demise any time before the completion of the policy paying term of 12 years, your child will still receive an amount of Rs.520000/- as death benefit which can be further invested to ensure that even if you are not around, his education plans are not impaired.  

    Plan early, plan today!

    If your child has the will and the desire to enter a B-school, don't let financial difficulties come in his way.


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  • 9 DEC. 2018

    Why Tax Planning Should Be An All-Year Round Activity?

    When young, there is a tendency to concentrate more on spending than on investing. Tax planning hits you once your income goes beyond a particular level. You risk losing money to tax that you could have otherwise saved by smart investing. As years go by, you tend to rush at the end of the financial year. The last quarter of the financial year is when quite a number of tax saving instruments are talked about to help taxpayers reduce their tax burdens.

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