About Sukanya Samriddhi Yojana or SSY
Sukanya Samriddhi Yojana is a scheme by Government of India which is also briefed as SSY and is a prime minister scheme under the program Beti Bachao Beti Padhao. It is focused essentially upon the development of girl child in the country. Sukanya Samriddhi Yojana is centralized about proper education system for girl children and assurance of care about carefree marriage expense. Sukanya Samriddhi Yojana is a very supportive step by Narendra Modiji for the development of girl children in India.
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Some of the major benefits of Sukanya Samriddhi Yojana are these –
- Higher Interest Rate.
- Tax Benefit Under Section 80C
- Payment on Maturity to Girl Child.
- Flexibility in Deposits- Any Number of time amount can be deposits in Multiple of Rs. 100 subject to Maximum Limit of Rs. 1.50 Lakh per year.
- Transferable Anywhere in India.
- Even Girl Child can operate after she attains the age of 18 years.
Sukanya Samriddhi Yojana Calculator (Excel)
For the calculation of how deposits shall be made and how shall you get benefited from Sukanaya Samriddhi Yojana, here is the Sukanya Samrisshi Yojana Calculator that you can use to find out more details about SSY calculations. The Sukanaya Samriddhi Yojana Calculator or Sukanya Samriddhi Yojana Chart in Excel is as follows –
|Age of Girl Child (A)||Account age (B)||Date of deposit (C)||Deposit Amount (D)||Principal amount year end (E)||Total Yearly Interest (F)||Total amount year end (G)|
More Information about SSY – Sukanya Samriddhi Yojana
Sukanya Samriddhi Account for the girl child has become a favourite investment option for long term investors wishing to build up wealth for the girl’s marriage or education. Sukanya yojana offers tax free returns. The interest rate for this scheme is 9.2% for the financial year 2015-2016 and it was 9.1% for the previous financial year 2014-2015. Check outmaturity value calculation for SSA.
Although there are many investment instruments available in the market which are specially designed for child’s future such as public provident fund/child mutual fund/bank account for child/fixed deposits, the zero risk factor and high interest rate gives sukanya samriddhi yojana a higher edge helping in beating the inflation to a good extent. Explore thedifferences and similarities between public provident fund (PPF) and Sukanya Samriddhi Scheme.
Compared below are the features of SSA and Children Mutual Fund which will help in choosing a best investment option for your child
Note: Details mentioned above for children’s mutual fund may vary for each fund.
Final Note: Although both have their own pros and cons, investments in Sukanya Samriddhi Yojana can be made if you do not want to take risk with your money. For investors who are ready to take high risks, mutual fund is a better option. Also fund houses employ quality professional experts who diversify the money in various instruments.
Listed below are few funds for children:
1. HDFC Children’s Gift Fund
2. SBI Magnum Children’s Benefit Plan
3. Tata Young Citizen’s Fund
Best Investment Plan for Children: Mutual Fund?
To win a race, they say, it’s not only important to run fast, but also to start early. As parents, you want the best for your child and to give the best to your child tomorrow, you will have to start today. If you start systematic investing today, by the time your child grows up, you would have a sufficient corpus to care of their higher education or wedding expenses. But with so many instruments available in the market which promise guaranteed returns (or so to say), which one do you chose?
Each instrument in the market fits a particular need and to select the best investment plan for your child, we need to first understand what our goals are.
You don’t have a ready capital to invest directly right-away. The capital needs to be built in terms of savings over the years.
You have sufficient time – your child is just in pre-school and you have close to 15-18 years to build a good sum of money.
And since we have time, we could also be a bit aggressive in our portfolio selection and bet a part of the yearly savings in equity instruments. However, a fair share needs to be invested in asset classes too like gold for example.
We would also need to factor-in the ever increasing cost of education. Each year, the cost of education especially, higher education breaks new limits. With the rising inflation, we need a vehicle which will factor in the inflation and give you returns over and above that.
Child Mutual Fund plans (e.g. ICICI Prudential Child Care Gift Plan, SBI Magnum Children Benefit, HDFC Children’s Gift Investment Plan) are exactly built around these needs. Mutual Funds like these offer the following features:
Diversified Allocation: Your funds are invested across various asset and equity classes providing you the right mix of risk exposure.
Low Cost: Mutual Funds charge less than 2.25% per annum as expenses which is way better than spending as high as 6% on ULIPs.
Professional Portfolio Management: With Mutual Funds, you get the assurance that your money is in the hands of professionals. You can get them to take up the cumbersome and tricky task of timing the market and deciding the right mix for investing your money.
Liquidity: Unlike ULIPs, one is not penalised for exiting a child mutual fund plan prematurely. In case one is in dire need of liquid money, one can always stop and exit which makes Mutual Fund SIPs highly liquid.
The best possible investment plan for your child’s bright future is to invest in your child’s education and taking all these factors into consideration, Mutual Funds are the best possible way which will help you give him that.
– See more at: LIC Child Career Plan
LIC Child Career Plan is a Money Back Endowment Plan for the benefit of a child such that Sum Assured plus Bonus is paid immediately to the nominee on death of the Life Insured after commencement of risk. However, if the child outlives the entire tenure, then he actually received 105% of the Sum Assured. He would receive 30% of the Sum Assured along with vested Simple Reversionary Bonuses 5 years before the date of expiry of policy term. Then he would receive 15% of the Sum Assured in the last 4 years, 3 years, 2 years and 1 year before Maturity of the policy. Also, when the policy matures, he would receive the remaining 15% of the Sum Assured along with Final Addition Bonus, if any.
Key Features of LIC Child Career Plan
This plan provides the risk cover on the life of child not only during the policy term but also during the extended term of 7 years post maturity.
The Survival Benefit is 30% of the Sum Assured along with vested Simple Reversionary Bonuses 5 years before the date of expiry of policy term and 15% of the Sum Assured in the last 4 years, 3 years, 2 years and 1 year before Maturity of the policy.
Maturity Benefit is 15% of the Sum Assured along with Final Addition Bonus, if any declared.
There is an additional rider of Premium Waiver Benefit.
Benefits you get from LIC Child Career Plan
Death Benefit – In case of death of the Life Insured, i.e. child after risk commencement, the nominee would receive the Sum Assured plus Bonus.
However, if the Life Insured, i.e. the child dies before risk commencement, then the nominee would receive all basic premiums paid till date + 3% p.a. interest compounded annually.
Survival Benefit – On Survival of the Life Insured, i.e. child, he receives 30% of the Sum Assured along with vested Simple Reversionary Bonuses 5 years before the date of expiry of policy term and 15% of the Sum Assured in the last 4 years, 3 years, 2 years and 1 year before Maturity of the policy
Maturity Benefit – On maturity, the Life Insured, i.e. the child gets the remaining 15% of the Sum Assured plus the final addition Bonus.
Income Tax Benefit – Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C
|Eligibility conditions and other restrictions in LIC Child Career Plan|
|Sum Assured (in Rs.)||1 lakh||
|Policy Term (in years)||
|Premium Payment Term (in years)||
Policy Term- 5
|Entry Age of Life Insured (in years)||
|Age at Maturity (in years)||
|Single Premium (in Rs.)||
Yearly, Half-Yearly, Quarterly & SSS
Sample illustration of LIC Child Career Plan
Premium = Rs.4513/- , Age of Life Insured, i.e. Child = 0 year
Policy Term = 25 years, Payment Mode = Yearly
Premium Paying Term = 20 years, Sum Assured = Rs 1,00,000
Total Investment = Rs 4513 X 20 = Rs 90260/-
Guaranteed Return is
Year 20 = Rs 30000/- + Bonus (Variable)
Year 21 = Rs 15000/-
Year 22 = Rs 15000/-
Year 23 = Rs 15000/-
Year 24 = Rs 15000/-
Maturity Benefit at the End of Year 25 = Rs 15000/- + Bonus (Variable)
Additional Features and Benefits of LIC Child Career Plan
Riders – There is 1 additional rider available in this policy
Premium Waiver Benefit rider.
What happens if?
You stop paying the premium – The policy will lapse if the premium stops. However if at least 3 years’ premium shave been paid then the policy acquires a Paid Up Value and the risk cover continues at the reduced Sum Assured. The reduced Sum Assured and the accrued Bonus would be payable on Maturity or on earlier death. It can also be revived within 5 years from the due date of first unpaid premium.
You want to surrender the policy – Surrender Value is paid if premiums for 3 years have been paid up. Before commencement of risk, the Guaranteed Surrender Value is 90% of the total amount of premiums paid – 1st year premium. After commencement of risk, the Guaranteed Surrender Value is 90% of the total amount of premiums paid before commencement of risk – 1st year premium + 30% of premiums paid on and after the commencement of risk.
You want a loan against your policy – Loan is not available under this policy.
Top 5 Child Insurance Plans to Invest in 2015
Child insurance plans are the best tools to manage your child’s future financial needs. As it is a long-term investment you can slowly build the corpus with your current savings and ensure that you don’t hold back on your child’s future.
Though, we all agree on the importance of investing in a child plan, what confuses us, is the choice of plans that the market offers. So many child plans and each of them with an awesome benefit and a strong marketing pitch that it is often difficult to see through them clearly.
So, we did some background checks and market trend analysis to give you the best five child insurance plans to invest in 2015.
1. LIC New Children’s Money Back Policy
New Children’s Money BackPlanis a non -linked plan, with-profit regular premium payment policy particularly intended to meet educational, marriage and other needs of growing children through survival benefits. This plan also provides risk cover to the insured child. This plan has benefits of both saving as well as protection.
Minimum Basic Sum Assured : Rs. 100,000Maximum Basic Sum Assured : No LimitThe Basic Sum Assured shall be in multiples of Rs. 10,000/-Entry Age for Life Assured : 0- 12 years (last birthday)Minimum/ Maximum Maturity Age for Life Assured: 25 years (last birthday)Policy Term/Premium Paying Term : [25 – Age at entry] years
Death of life assured before the date of commencement of risk: Return of the premium excluding extra premium, taxes and rider premium, if any.Death of life assured after the date of commencement of risk: Sum Assured + Revisionary Bonuses + Final Additional Bonus
Maturity Benefit: On the Life assured surviving the stipulated date of maturity, Sum Assured on Maturity (40% of the Basic Sum Assured) + Simple Reversionary Bonuses + Final Additional Bonus, if any, shall be payable.
Survival Benefit: On the Life Assured surviving the policy anniversary after the completion of ages 18 years, 20 years and 22 years, with 20% of the Basic Sum Assured on each occasion shall be payable. It should be noted that the policy should be in full force.
Why Choose LIC New Children’s Money Back Policy ?Low premium rates Participation in Profits: The policy shall participate in profits of the corporation and will offer simple reversionary.Flexibility in Rebates- The policy holder has the choice
Click to select either mode rebate or high sum assured rebate.Loan Facility is available under LIC New Children’s money back Plan.2. LIC Child Carrier Plan
LIC Child Career Plan is a Money Back Endowment Plan. It is particularly designed to meet the ever-increasing educational and other needs of growing children. In this plan the sum assured plus bonus is paid straight away to the nominee on death of the life insured after commencement of risk. It provides risk cover on the life of child not only during the policy term but also during the extended term (i.e. 7 years after the expiry of policy term). When the policy matures, the child would receive the remaining 15% of the sum assured along with final addition bonus, if any.
Minimum Basic Sum Assured : Rs. 100,000Maximum Basic Sum Assured : Rs. 1 CroreEntry Age for Life Assured : 0-12 years (last birthday)Minimum/ Maximum Maturity Age for Life Assured: 23-25 years (last birthday)Policy Term/Premium Paying Term : 11-27 yearsPayment Modes – Yearly, Half-yearly, Quaterly & SSSPremium paying Term – 6 years or Term minus 5years.
Premium Waiver Benefit:
The proposer can go for this benefit if aged between 18 and 55 and is medically fit. Under this benefit waiver of premiums will be provided on death of the proposer.
The policy can be surrendered after paying premiums for at least three full years. The guaranteed surrender value will be as under:
Before commencement of risk: 90% of the total amount of premiums paid. The premiums for the first year will be excluded.After commencement of risk: 90% of the total amount of premiums (excluding premium for the first year) paid before commencement of risk and after the commencement of risk 30% of premiums will be paid.
On death after the date of commencement of risk: If death occurs within the period from date of commencement of risk to 5 years before the date of expiry of policy term: Sum Assured + Vested Simple Reversionary Bonuses + Final bonus (if any)If death occurs within 5 years before the date of expiry of policy term: Sum Assured + Final bonus (if any)On death during the extended term: Sum Assured is payable.On death before the date of commencement of risk: All the premiums paid (excluding extra premium + premium for premium waiver benefit (if any) + interest of 3% p.a compounding yearly.
Why Choose LIC Child Career Plan ?
Periodic PayoutBonus AdditionsWaiver of premium rider availableAuto Cover3. BSLI Vision Star Plan
BSLI Vision Star Plan is suitable for you, if your intention is to get regular assured payouts for financing your child’s education and securing child’s future even in your absence with all-inclusive financial protection.
Minimum Basic Sum Assured : Rs. 100,000Entry Age for Life Assured : 18-55 YearsMinimum/ Maximum Maturity Age for Life Assured: 75 YearsPolicy Term/Premium Paying Term Option A: 16-23 YearsOption B: 14-21 Years Payment Modes – Yearly, Half-yearly, Quaterly & MonthlyPremium Paying Term – 5-12 Years
In case of death of the life insured during the policy term, the nominee will get:
Sum assuredAssured payouts on scheduled datesNo premiums are required to be paid in futureBonuses accured till policy maturity date + Terminal Bonus (if any) will be paid on the maturity of the policy.4. PNB Metlife Smart Child
Minimum Annualised Premium: Rs. 18,000 p.a.Maximum Annualised Premium: Till 35 Years: 2 Lakh36-45 Years: 1.25 LakhAbove 46 Years: 1 LakhEntry Age for Life Assured : 18-55 YearsEntry Age for Beneficiary: 90 days- 17 daysSum Assured: 10 times the chooosen Annualised Premium onlyMinimum/ Maximum Maturity Age for Life Assured: 23-25 years (last birthday)Policy Term/Premium Paying Term : 10, 15 & 20 YearsPayment Modes – Yearly, Half-yearly, Quarterly & PSP (Payroll Saving Program)Premium paying Term – 6 years or Term minus 5years.
At the end of the policy term, the beneficiary will get fund value along with loyalty additions (if any).
In case of insured’s/Policyholder’s sudden demise, the nominee will get following benefits:
Higher of Sum Assured or 105% of the Total Regular Premium paidFuture Premiums payments under the Policy will close down. Additionally, the PNB MetLife will credit on a regular basis an amount equivalent to one annualized regular premium as a part of Premium Waiver Benefit (PWB) on a monthly basis into Policyholder’s Fund.
Why Choose PNB Metlife Smart Child?
Reasonably priced investments with annual premium starting from Rs.18,000 p.a.PNB MetLife takes care of the premium in case of inopportune demise of the parent.Liquidity with partial withdrawals and unlimited switches to manage your funds.Systematic transfer options to assist you get the best of equity markets.5. Kotak Headstart Child Assure. Call sukanya yojana helpline number for further information.
Maximum Basic Sum Assured : No LimitEntry Age for Life Assured : 28-70 yearsPolicy Term: 10-25 yearsPremium Paying Term: Policy term of 10 Years: 5 YearsPolicy term of 15-25 Years: 10 Years Payment Modes – Yearly and Half-yearly
Basic sum assured paid without any delay.Premium Waiver – Premium payment obligation closes down and all future premiums will be added to the fund value.The policy will continue and the fund value will be paid at maturity.
At maturity you can take the full fund value to meet the financial needs of your child. Moreover, you can also select to collect the maturity proceeds partly in cash and the balance by way of installments, for up to 5 years after maturity, by choosing our settlement option.
Why Choose Kotak Headstart Child Assure ?
Guarantee financial security of your child through Triple BenefitCreate affluence for your child’s future financial needsInvest in an extensive range of funds