BE THE PROUD PARENT

CHILD HIGHER EDUCATION PLAN 

(15%  GUARANTEED RETURNS)

To be father waiting outside the Operation Theatre, He looks tensed as he hears the loud cry of his wife. After a few minutes, a Nurse comes out of the Operation Theatre and says “Congrats! It is a girl! ” The couple has been waiting eagerly for this moment and is delighted by this Good News. An addition of new member into the family brings joy and cheer to everyone, but then there are responsibilities too.

SURVEY RESULT
According to recent study by the Department of Education, every 100 parents, how they manage their fund for Children’s Higher Education, the following situation exists.

Some unbelievable facts:

According to survey ……

·      61% parents are unable to fulfill their child’s dream, because they don’t have enough money;

·      23% parents depend on loan, friends and relatives;

·      6% parents are depending on trust and charities;

·      9% parents sold off their properties for child’s higher education.

·      Only 1% parent can give good higher education to their child.

HIGHER EDUCATION COST

Inflation may be down to nearly zero but a major expense of the average Indian household is growing at a fast clip. The cost of higher education is already high and rising at 10-12 per cent a year. Children's education is one of the biggest cash outflows that families must plan for. A four-year engineering course costs roughly Rs 6 Lakh right now. In five years, the cost is likely to touch Rs 9 Lakh. By 2025, it would cost Rs 16 Lakh to get an engineering degree (see chart).

HIGHER EDUCATION COSTS ARE RISING AT 10%
YEAR	Year-2015	Year-2020	Year-2025	Year-2030	Year-2035
LAW	5 LAC	8  LAC	13  LAC	21  LAC	30  LAC
ENGINEERING	6 LAC	9 LAC	16 LAC	28 LAC	36  LAC
MEDICINE	12 LAC	21 LAC	31  LAC	50  LAC	75 LAC
MBA	16 LAC	22 LAC	41 LAC	66 LAC	95  LAC

“Higher education costs have the highest inflation rates. Parents need to realise it is going to be an expensive affair.

At an average running inflation rate of 10%, a four-year  engineering course that costs Rs 8 lakh today is likely to set you back by Rs 17 Lakh in eight years’ time. By 2030 the same would be more than 30 Lakh. For engineering and medical aspirants, the costs start even while the student is in school. Coaching institutes charge between 1 lakh to 2 lakh per year to prepare students for the entrance exam.

The earlier generations had it easy, competition was low and the fee in Government Institutions was modest. Now, the heightened competition for admission to quality government-run institutions is forcing students to turn to more costly private institutions.

The Ministry of Human Resource development (MHRD), Government of India (GOI) has established National Testing Agency (NTA) as an independent autonomous and self-sustained premier testing organisation for conducting efficient, transparent and international standard test in order to access the competency of candidates for admission to premier higher education institutions.

1.   NEET NATIONAL ELIGIBILITY CUM ENTRANCE TEST, (NEET (UG) - 2019) will be conducted by National Testing Agency (NTA) for admission to MBBS/BDS Courses.

2.   AIIMS All India Institute of Medical Sciences (AIIMS),

     An Act of Parliament in 1956 established the All India Institute of Medical Sciences (AIIMS) as an autonomous institution of national importance and defined its objectives and functions. By virtue of this Act, the Institute awards its own medical degrees and other academic distinctions. The degrees awarded by the Institute under the All India Institute of Medical Sciences Act are recognized medical qualifications for the purpose of the Indian Medical Council Act and notwithstanding anything contained therein, are deemed to be included in the first schedule of that Act, entitling the holders to the same privileges as those attached to the equivalent awards from the recognized Universities of India.

3.    JEE, Joint Entrance Examination (JEE) MAIN, JEE Main is applicable for admission to NITs, IIITs and CFTIs

4.   Marine, Navy, Defense,

5.   National Institute of Fashion Technology (NIFT) Entrance Test,

6.   All India Hotel management Entrance Exam NCHMCT, National Hospitality Teachers eligibility Test (NHTET)

7.   Common Law Admission Test,

8.   National Entrance Screening Test (NEST), Shipping Corporation of India Ltd., Trainee Navigation Officers  CADETS (TNOC), UPSC, Indira Gandhi Rashtriya Uran Akademi Commercial Pilots Licence (CPL) Course. To join National Defence Academy a candidate must appear in the entrance exam conducted by Union Public Service Commission, New Delhi, twice a year. The Union Public Service Commission is solely responsible for issuing guidelines for selection and the final conduct of the entrance examination.

   "In the future, global education brands may come to India and their fees will be much higher," says S.G. Raja Sekharan, who teaches wealth management at Bangalore’s Christ University.

    However, the big question worrying Indian parents is; will they be able to fund their children's higher education? They can, if they plan ahead and take the right steps. One obvious solution is to start saving early.

   Child Education is one of the biggest goals of parents these days because of the tough environment and high expenses involved. Most of the parents start saving for Child Education right from the birth of Child, which is a great!

    65%  of parents concern about child’s education planning. All the parents must do guaranteed financial planning for child higher education. Guarantee is very important should be very important aspect in child education planning.

Why burden your child with education loan?

Start planning today. Start saving today for education.

    The most exciting experience is when your child takes his first step, but you also worry if he would fall. The best and guaranteed option is the investment in life insurance plan of LIC. LIC has a plan that gives your child Guaranteed Benefits at key milestones, even in your absence. 

    LIC Child education plan made for parents like you, to see your child grow up to achieve all that you dreamt for him, irrespective of life's uncertainties. The plan ensures your child receives the guaranteed benefits at key milestones of their life, even in your absence, without the worry of paying future premiums. 

LIC Child education plan……

·         Protect your child’s future

·         Fund your child’s higher education in your absence too

·         Support your child in achieving his/her dreams

·         Support your child in setting up his/her own business

·         Focus on your child's development, free from financial worries

    It is very surprising that some financial consultant says that buys term insurance and invests entire money in Mutual Funds or SIP. Can anyone give guaranteed return on such investment? Say after 7 or 8 years a person need money for his child education or marriage can anyone give guarantee that the share market will not crash after 7-8 years? Can you tell your children after 7-8 years that you had planned for their education in Mutual Funds but the market crash, now please wait for 2-3 years. Off course people have earned money in share market but they have equally lost too. This does not mean that one should not invest in mutual funds. Now the question is which money should be invested in mutual fund? After covering all your liabilities whatever money left, that should be invested in mutual funds.