It is one of the most forward-looking child education insurance policies in India. Titled the ‘Sukanya Samriddhi Yojna’, it was launched by Narendra Modi, under the ‘“Beti Bachao, Beti Padhao’ scheme on 22 January 2015 to cater to the financial needs of girl children for higher education and marriage. It is a special deposit scheme in which a Sukanya Samriddhi account can be opened for a girl after her birth until she turns t10 years old. The minimum deposit amount is Rs. 1000 and the maximum amount which can be deposited in a given financial year is 1.5 lakhs.
The Benefits of the Child Education Plan by The Government:
Consider how this girl child insurance plan helps girls fulfill their dreams
The Sukanya Samriddhi Yojna provides the highest interest rate of any government scheme related small savings account at 9.1 percent for the FY 2016-17. The interest rate is not fixed and is announced by the government every year. Being the highest interest rate of all small savings schemes, it has become one of the best investment options for those who want to save for their girl child’s future. The government is constantly bringing positive changes in the overall scheme to make sure that families have enough money to pay for the education and marriage of their daughters, thus helping to decrease the female foeticide cases in India.
The amount invested in the Sukanya Samriddhi Yojna is EEE tax exempted. It means that the money you invest in this child education insurance policy and the maturity amount you get after the addition of interest is allowed as an Income tax deduction under section 80C of the Income-tax act. These tax benefits effectively increase the overall savings of the account holder and can be used to cover the future expenses of the girl child.
One of the best features of the scheme is the option of premature withdrawal by which half of the total amount can be withdrawn from the account once the girl reaches 18 years of age. This withdrawn money can be used to pay for the higher education of the girl child, and the rest of the money can pay for marriage and other expenses.
When the account reaches its maturity, which is 21 years from the date of opening of an account or the girl’s marriage (whichever is earlier), the whole amount invested with the accrued compound interest is deposited in her bank account. The government also pays interest even after the maturity of the account until the policyholder closes the account. This allows the girl child to have financial freedom after marriage or after 21 years to use the money in living a good and financially secure life.
Edelweiss Tokio Life highly encourages the child education plan for girls, which leads to a bright future of girl children in India. This is why we have tailor-made a child education plan called Edusave, which caters to all the child education needs and supports you financially. It comes with the added benefits to save tax under section 80C and 10(10D).