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.
Children’s education is crucial for their development. However, if the earning male member of a family dies prematurely due to an accident or illness, or becomes permanently disabled and loses his job, it can lead to financial difficulties that impact the children’s education, sometimes forcing them to drop out or preventing them from pursuing their desired educational path.
In such cases, if a child’s father passes away unexpectedly, members of this group should contribute Rs. 100 for each affected child. This amount will be set aside in the child’s name to cover educational expenses, ensuring that the child’s education continues without interruption due to financial constraints.
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. 100, which is non-refundable, parents can alleviate the concern of their children’s education expenses, even in the unfortunate event of their death.
The concept of this scheme is based on pre-commitment crowdfunding. Each parent commits to contribute Rs. 100 towards the education of another member’s child in the event of their untimely death. Similarly, if a parent passes away unexpectedly, other members will contribute Rs.100 towards their child’s education. This collaborative approach ensures that even though each individual contribution is modest, it collectively supports the timely education of affected children
Documents Required to Become a Member of this Scheme
Following Documents are required to become the member of the “Children’s Education -Social Security Scheme”.
1) PAN and Aadhar Card of the Member.
2) Mobile Number
3) Mail ID of Member.
4) Nominee (Spouse/Son/Daughter Family Member Name) 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 one-time contribution of Rs. 100 in the event of their untimely death. 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’ children, with the total expenses subject to the limits specified below.
The “Children’s Education-Social Security Scheme” will be funded through the following sources:
- Member Donations: Rs. 100 per child. (Group member x Rs.100)
- Investment Income: Dividend and interest earned from investing the accumulated funds.
- Foundation Income Allocation: Funds allocated from the income of the Flashstar Foundation.
- External Donations: Contributions collected from sources other than members.
- Any unused funds: Any unused funds allocated for a child’s education will be transferred to the General Kids Fund account. These funds will be used to cover shortfalls in contributions from members when needed.
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?
Yes, the amount contributed by other group members for a child’s education is 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 Education Expenses
The total amount used by a child for education expenses is refundable to the “Kids Education Fund” Account once the child secures a job or begins their profession. This amount is interest-free until the child starts working. Upon employment, the refunded amount will accrue simple interest at a rate of 7% per annum. The individual is required to repay at least 10% of their net salary towards this refund.
This policy helps sustain support for other children’s education and ensures proper management of the fund.
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 or Collage Admission Fees
- Academic / Entrance Test / Professional CA,CS,CMA/ UPSC/MPSC (State)/Recruitment Exam Fees.
- College other fees,
- Academic books,
- Notebooks,
- Educational trips,
- Industrial visits,
- School transport (Home to Scholl/Collage),
- Uniform costs,
- Hostel Fee (Actual or Rs. 2000 per month) and
- Any other education-related expenses required by the school or college.
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.
Is the subscription/donation of Rs. 100 mandatory every month or year?
No, you are not required to make monthly or annual payments. You only need to contribute Rs. 100 once when becoming a member of this scheme. If a member’s nominated child’s parent passes away unexpectedly, other members of the kids’ group will contribute Rs. 100 to the affected child’s education fund. Otherwise, no further contributions are necessary.
What is the age limit to become a member of this scheme?
Any child who is at least 3 years old can join the scheme and remain a member until they complete their education.
Can membership be paid in installments?
No, the membership fee of Rs. 100 must be paid in a single payment. There are no monthly or annual installment options. If a member’s child’s parent passes away unexpectedly, the education expenses will be covered by the contributions of other group members, each contributing Rs. 100. Since the amount is minimal and intended to provide crucial support, installment payments are not necessary. Members who cannot afford the Rs. 100 fee are considered financially ineligible to join the scheme.
Is there a locking period for this scheme?
Yes, the scheme has a locking period of one year from the date of full membership payment. This period allows the Flashstar Foundation adequate time to accumulate and manage the funds.