Most of the parents are worried about the future of their children and especially the girl child and her marriage. Looking at current social change I personally believe that worry has become less relevant today. However, if still one wants to save for daughters' education & marriage the majority question everyone has is which instrument to choose?
Today we will try to compare and evaluate 2 well known options 1. Sukanya Samruddhi Yojna & 2. Jeevan Tarun Plan
Both plans are guaranteed by the Government of India so they are risk-free. Let us compare features of both the plans.
|
Type |
Sukanya Samriddhi Yojana |
Jeevan Tarun Plan |
|
Type of Investment |
If you are looking for a small investment scheme that will provide you with a good interest rate then SSY is the best option. |
If you are looking for a life cover that will secure the future and also give benefits in the present then LIC has a number of options. |
|
Tenure of maturity |
The total time that is required for the SS scheme to mature is 21 years. |
The time of maturity, of the LIC scheme will depend on the policy that the customer has selected. |
|
Life coverage |
If the depositor dies, the girl in whose name the account has been opened will not get a life coverage benefits. |
The main reason for purchasing the LIC policy is that after the demise of the depositor, the family will get the life coverage benefits |
|
Account holder |
The SS account can only be opened by the parents of the legal guardian. The account can only be opened for a female child. |
Anyone can opt to purchase a LIC policy. The customer will be able to purchase the policy for both a girl and a boy offspring. |
|
Facility of nominations |
The account holder is the only person for whom the account can be opened. There is no facility of nominating anyone else |
When purchasing a LIC policy, the client will be able to nominate two people who will get the money after the demise of the actual client. |
|
Fixed rate of interest |
The interest rate that the SSY is offering will depend on the economic market. It is not fixed. |
Though the rates will differ according to the policy terms and also the market, once you have taken the policy, the rate will remain the same till the maturity date. |
|
Pre-mature withdrawal facility |
Once the female child has attained the 18 years, she will be able to withdraw only 50% of the total amount that has been accumulated in the account. |
Only after the completion of 3 years will the client be able to surrender the LIC policy. |
|
Tax benefits |
The SSY account will get tax benefits under the Section 80C |
The amount invested in the LIC policy will also get tax benefits as per the rules of Section 80 C |
The Verdict:
Both plans are good in their place but when it comes to pre-mature withdrawals in case of emergency Jeevan Tarun is better. Similarly interest rate in SSY is variable so risk of downward shift is always present. Moreover Jeevan Tarun gives a stream of cash flow from age 20-25 which can be useful for higher education fees payment.
Overall one can say that the Jeevan Tarun plan has an upper edge over SSY looking at its flexible features.
To know more feel free to contact on +91-7990290560
Hardik Baxi,
Baxi Investment