Child insurance plan is a very useful financial product, in order to provide the financial security for the child future needs such as education, marriage and other requirements. They infact include both life insurance policy features and investment plans, thereby making it a great product for parents to ensure good future value for their child. High cost of education, unpredictable economic outlook, and changing familial requirements makes child plan more adequate to meet future exigencies. It guarantees that your child’s dreams are achieved especially in case the policyholder dies before the agreed times.
These plans afford a life cover and enable people build up a lump sum or instalments for different tuition phases. Innovations such as exclusion of premiums in the event of the policyholder’s death make the coverage more robust. Paying for a child plan is a wise investment that helps to meet your child’s needs in the future and also gives you a tax advantage
Top child plans to Secure Your Child’s Future
- Aviva Young Scholar Advantage: Aviva Young Scholar Advantage is a non-participating unit-linked insurance plan (ULIP) designed to support a child’s education. This plan provides market-linked returns, allowing policyholders to build a big wealth over time. It offers complete protection against death
Entry Age: 21-45 years for the parent (life insured), Child nominee – 0-17 years
Maturity Age: Up to 60 years
Maximum Annualized Premium: No limit subject to underwriting, Minimum Rs. 50000
Top up sum Assured:25x Top up Premium
Features and Benefits:
Premium Waiver Benefit: If the primary insurer passes away, then waiver of premium is provided
Flexible Investment Options: Choose from seven funds for investors with different appetites
Tax Benefits: Premiums paid and maturity benefits are eligible for tax deductions under Section 80C and Section 10(10D).
Partial Withdrawals: Allows partial withdrawals after 5 policy years, providing flexibility for urgent needs.
- Bajaj Allianz Young Assure:The Bajaj Allianz Young Assure Plan is a traditional, premium payment endowment savings plan that combines savings with life cover. It helps you systematically build a fund to meet future financial needs like higher education.
Entry Age: 18-50 years
Maturity Age: 28 to 60 years
Maximum Annualized Premium: 10 x Annualized Premium
Features and Benefits:
Guaranteed Maturity Benefit: Ensures a payout at maturity, with an option for additional benefits depending on the chosen variant. The Maturity Benefit is Guaranteed Maturity Benefit (GMB) plus Guaranteed Additions (GA) plus Vested Bonus (VB)plus Interim Bonus (IB), if any, plus Terminal Bonus (TB).
Cash Bonus Options: Offers bonuses that can be utilized in various ways, including reinvestment.
Flexibility: Choose premium payment terms of 10, 15, and 20 years, and select the sum assured based on future needs.
Premium Rebate: The plan offers a Premium Rebate if your chosen GMB is greater than 1,00,000.
Tax Benefits: Enjoy deductions under Section 80C and tax-free maturity proceeds under Section 10(10D).
- Bharti AXA Life Child Advantage: Bharti AXA Life is a traditional participating life insurance plan designed for parents who wish to build a corpus for their child’s education. The plan is flexible to suit the requirements of your child and help you plan his/her future. The plan comes with dual payout options
Entry Age: 18-50 years for parents
Maturity Age: Up to 71 years for regular pay, 76 years for Limited pay
Sum Insured Band:25,000 – 1,50,000
Flexible Policy term: 11-21 years
Features and Benefits:
Premium Waiver Benefit: Continues benefits even in the event of the parent’s demise, ensuring financial support for the child.
Policy Term Flexibility: Choose from policy terms of 11-21 years depending on the child’s education milestones.
Additional Riders: Enhance coverage with optional riders such as Accidental Death Benefit and Hospital Cash Rider.
Under this option, 40% of Sum Assured will be paid on Maturity Date at the end of the Policy Term. This option also offers Guaranteed Payouts (adding up to 70% of the sum assured) which would be as defined in Guaranteed Payouts section.
Endownment Option
Under this option, 125% of Sum Assured will be paid on Maturity Date at the end of the Policy Term. No Guaranteed Payouts would be paid under this option
- Max Life Shiksha Plus Super : Max Life Shiksha Plus Super is a unit-linked insurance plan that focuses on securing your child’s education through market-linked returns and comprehensive coverage. You have an option to invest in 11 fund options
Entry Age: 21-50 years
Maturity Age: Up to 65 years
Premium Term: 10 years or any term between 15 and 25 years
Maximum Annualized Premium: 5 Pay – Rs 50000, Regular Pay – Annual Mode Rs. 25000, Non Annual Mode Rs. 48000
Features and Benefits:
Death and Disability Benefits: Provides death benefit, waiver of future premiums, and fund protection in case of the parent’s death.
Funding of Premiums: The company continues to fund the policy after the parent’s demise, ensuring the child’s education is not impacted.
Choose from the 2 investment strategies to protect your Fund against market volatility
- ICICI Pru Smart Kid Assure Plan: This is a child education-oriented ULIP plan by ICICI Prudential, focused on long-term investment growth and security for the child’s future.
Entry Age: 20-54 years
Maturity Age: Up to 64 years
Policty term: 10-25 years
Maximum Annualized Premium: 7 Times Annualised Premium
Features and Benefits:
Guaranteed Waiver Benefit: Ensures all future premiums are waived in case of parent’s death or disability.
Fund Options: Access to equity, debt, and balanced funds for enhanced growth potential.
Partial Withdrawals: Partial withdrawals allowed after 5 years, helping meet urgent needs.
Tax Benefits: Premiums and payouts qualify for deductions under Sections 80C and 10(10D)for death benefits
Payment of premium: You can opt for either the One Pay option (payment of premium once), or the Regular Pay option (regular payment of premiums throughout the policy term)
- Reliance Secure Child Plan: Reliance Secure Child Plan is a traditional endowment plan that provides guaranteed maturity benefits with life coverage, ensuring a financial safety net for a child’s future.
Entry Age: 21-50 years
Maturity Age: 31-70 years
Policy term: 10-25 years
Minimum Sum Insured:25,000,Loyalty addition of 1% of the premiums paid under basic plan and top ups
Features and Benefits:
Guaranteed Maturity Benefits: Offers maturity benefit as a lump sum or periodic payments to cover major life milestones.
Premium Waiver: In case of the insured parent’s demise, future premiums are waived, ensuring no disruption to the child’s financial planning.
Additional Riders: Option to add riders such as Term Life or Critical Illness for enhanced protection.
Tax Savings: Benefits are eligible for tax deductions under Sections 80C and 10(10D).
- SBI Life – Smart Scholar PlusUIN: SBI Life Smart Champ is a unit linked participating plan that supports your child’s education by providing guaranteed benefits along with life coverage.
Entry Age: 21-50 years
Maturity Age: Up to 65 years
Policy Term: 8 to 25 years
Sum Assured: Regular pay: 10 x Annualized Premium, Single Pay : 1.25 x Single Premium
Premium Paying term: Single Pay: One time at policy inception Limited Pay: 5 years to Policy term minus 1 year Regular Pay: Equal to policy term
Enhanced Wealth Creation opportunity through 10 varied fund options
Features and Benefits:
Guaranteed Payouts: Structured payouts to support key education milestones, typically between ages 18 and 21.
Premium Waiver: The policy continues even if the parent is no longer around, with waived premiums.
Life Cover: Ensures a secure financial foundation for the child’s future through lump-sum death benefit
Tax Deductions: Premiums paid qualify for tax benefits under Section 80C, and the payouts are tax-exempt under Section 10(10D).
Conclusion
It can be considered as a wise decision to invest on a child plan in order to ensure that your child will be financially prepared for important occasions such as higher education. Some of the perks of these child education plans are the ability to waive premiums; guarantee payment in future and tax saving and therefore suitable for parents who want to lay down a good financial future for their children. You have to realize that choosing the right treatment plan will depend on how much risk and reward you want to take on. As India’s leading Online Insurance aggregator, Fincover enlists all these plans at one-platform to enable easy decision making.
