Children's Education -Social Security Scheme
I am worried now, How my family can handle financial problems after me ?
Do you love your kid’s immensely?
It is your moral and social responsibility as a father to provide Education the same.
If you have a dream to get better education by your kid ..
If you are with him, They will get better education….
Because you are willing to work hard for it…
But what if God intervenes and you are not there to give education?
How can your wife spend so much education expenses behind your back?
If you love your family (wife and children) today you will have to make financial provision for their happiness.
In such a situation, if a child’s father dies prematurely, financial assistance of up to ₹10 lakh will be provided from the Kids Education Fund to cover the educational expenses of these children. Members of this group are required to contribute ₹1,000 annually to this fund. When the child turns 25, they will automatically be removed from the group. The fund will cover school fees, examination fees, uniforms, transportation costs (such as bus or train passes), books, notebooks, and educational trips (Actual expenses) every year. Donations will not be included in this fund. This ensures that the child’s education continues without interruption due to financial difficulties.
If the earning male member of a family dies prematurely, financial difficulties often prevent middle-class families from affording quality education for their children. Every child has a social right to receive a quality education. To address this issue, we have introduced a pre-commitment crowdfunding scheme designed to secure children’s educational rights and ensure their continued access to education. By contributing just Rs. 1000 per annum as a education fund, which is non-refundable, parents can alleviate the concern of their children’s education expenses, even in the unfortunate event of their death.
Time and circumstances are never constant, and neither is one’s financial situation guaranteed to remain the same throughout life. Education forms the foundation of a child’s future. If a child receives quality education, they can build a better and more secure life.
The concept of this initiative is based on pre-commitment and crowdfunding. Each member of this group can contribute just ₹1000 annually to the “Kids Education Fund” to ensure financial security for their child’s future education.
In the event of an unexpected demise of a parent, this fund will cover the child’s educational expenses. This ensures that the burden of education costs does not fall on the women in the family.
Through this collaborative approach, even though each member’s contribution is modest, collectively it provides significant support to ensure timely and uninterrupted education for affected children.
Documents Required to Become a Member of this Scheme
Following Documents are required to become the member of the “Children’s Education Fund -Social Security Scheme”.
1) PAN and Aadhar Card of the Member (Father or Widow Mother)
2) Mobile Number
3) Mail ID of Member.
4) Nominee (Kids name – beneficiary member of this Scheme).
5) Optional – Bank Account Details of Daughter or Spouse for transfer of Funds.
Sources to Create the Fund
Please note that this is not an insurance plan. Interested members of this scheme make a annual contribution of Rs. 1000 every financial year (April to March). The scheme becomes active only if the family’s earning male member or in the absence of a male member, the earning female member, dies unexpectedly due to reasons other than suicide. The scheme will cover the educational expenses of such members’ beneficiary children, with the total expenses subject to the limits specified below.
The “Children’s Education Fund – Social Security Scheme” will be funded through the following sources:
- Member Contribution : Rs. 1000 per child, per annum
- Investment Income: Dividend and interest earned from investing the accumulated such funds.
- Foundation Income Allocation: Funds allocated from the Donation income of the Flashstar Foundation.
- External Donations: Contributions collected from sources other than members.
- Any unused funds: Any unused funds of other Social Security Programme and allocated for a child’s education Fund will be transferred to the Kids Education Fund account.
If a member has more than one child, how many children can be enrolled in this scheme?
If a member has more than one child, up to a maximum of 3 children can be enrolled in this scheme. Membership fees must be paid separately for each child. For example, if a member has 2 children, they will need to pay Rs. 100 for each child, totaling Rs. 200.
Is the amount credited to the Kids Education Fund by members refundable?
No, the amount contributed by other group members for a child’s education Fund is a donation and it is non refundable. Once the funds are allocated to the child’s name, they can be used solely for the child’s education expenses as needed, according to the specified terms and conditions. Any unused amount will be transferred to the General Kids Education Fund Account.
Refund Policy for Temporarily Education Loan
In case a member of the group loses their job or faces financial difficulties due to medical treatment following an accident, the member can avail a temporary loan at an 8% simple reducing interest rate to cover their child’s educational expenses. The loan, along with interest, can be repaid within two years through monthly or quarterly installments.
This scheme is strictly for emergency situations and is not available to all members under normal circumstances.
Is it necessary to submit expense bills to claim the amount?
Yes, to claim the amount from this scheme, you need to submit bills for education fees and other educational expenses. For detailed information, please refer to the Terms and Conditions.
The spouse of the member can claim the educational expenses from Flashstar Foundation either online or offline. Each registered child’s educational expenses must be claimed separately.
Is the 80G Exemption Benefit available for contributions to this fund?
No, the 80G exemption benefit is not available for contributions to this fund. When an Indian becomes a member of this social security scheme, the amount paid is allocated specifically for the educational expenses of a designated member’s children. Since these contributions are not classified as donations but as fund allocations for specific purposes, they do not qualify for the 80G certificate.
Which Educational Expenses Covered for Kids Education expenses.
Once the contributed amount is allocated to a specific affected child for education expenses, the child’s parents can claim these funds annually as needed. The expenses covered include
- Tuition fees (School/ Collage)
- Admission Fees (School or Collage)
- Academic / Entrance Test / Professional CA,CS,CMA/ UPSC/MPSC (State)/Recruitment Actual Exam Fees.
- College other fees,
- Academic books,
- Notebooks,
- Educational trips (Actual Expenses),
- Industrial visits (Actual Expenses),
- School transport (Home to Scholl/Collage – Auto/bus monthly fees),[ Bus Pass / Train Ist. Class Pass]
- Two Uniform costs (Annually Actual bill) -,
- Hostel Fee (Actual fee or Rs. 2000 per month which ever is less) and
- Any other education-related expenses required by the school or college.
- Maximum Educational financial assistance Rs. 10 lakhs or Number of Member x Rs.100 Which ever is lower
How can a beneficiary child claim this amount for education expenses?
Once the contributed amount is allocated to a specific affected child for education expenses, the child’s parents can claim these funds annually as needed. The expenses covered include tuition fees, college other fees, academic books, notebooks, educational trips, industrial visits, school transport, uniform costs, and any other education-related expenses required by the school or college as above mentioned.
Is the annual account handling charges every year of Rs. 100 ?
No, you are not required to make annual payments for account handling charges. You only need to contribute ₹100 as a one-time payment when joining this scheme. Members with children aged between 3 and 25 years are required to contribute ₹1000 annually to the Kids Education Fund (April to March).
In the event of the unexpected passing of a nominated child’s parent, the educational expenses of the nominated child, up to ₹10 lakhs, will be covered by this fund.
What is the age limit to become a member of this scheme?
Any child aged 3 years or older is eligible to join the scheme and can remain a member until they complete their education or reach the age of 25, whichever comes first.
Yes, the membership fee of ₹100 must be paid as a one-time payment at the time of joining. For the annual contribution of ₹1000 to the Kids Education Fund, a flexible payment option is available. Members can choose to pay ₹100 monthly, ₹250 quarterly, or ₹500 semi-annually, based on their convenience.
Is there a locking period for this scheme?
Yes, the scheme has a locking period of six months from the date of full membership payment. This period allows the Flashstar Foundation adequate time to accumulate and manage the funds.
