Child Education Plan Comparison

Benefits of Child Plans in India

With a child plan in your investment kitty, you can stay assured that the future financial needs of your child will be fulfilled. However, policy comparison is a must before buying any Child Education Plan. It educates one on the factors of the investing market and deciphers the customized plans for you.

Here are some of the features and benefits the plan offers: 

• In case of a medical emergency, the plan will offer you a partial withdrawal to meet the expenses. 

• Besides that, the Child Education Plan can be used as collateral against an education loan. In this way, it will assist you in securing a loan and meeting your financial obligations. 

• One can also withdraw a partial amount to enhance the child's talent. 

• In-built riders of Child Education Plan like waiver of premium offer additional help during death/disability of the primary policyholder (parent/s) or loss of their income.

How to Choose an Adequate Plan for Your Child? 

Financial stability is one of the primary concerns of every parent. Even though you may find many plans in the market, the need for a better education plan is more. They act as insurance plans and a medium to create funds for the child's future needs. 

There are many indicators that you must look for before selecting a policy.

Here are some things that you must keep in mind: 

1. Entry and maturity

   There are plenty of child education plans with different parameters in the market. They vary in size and coverage. In addition, the plans will vary in entry age of 30 Days to 8 years from the day of the child’s birth. Choose an appropriate age and maturity value to gain maximum benefits.

2. Maturity

   Different kinds of plans offer different payment options. While some plans will offer a lump sum maturity amount, other plans will offer it in instalment. This will be beneficial in various matters. You can cover the expenses of the different milestones. These instalments cover various small and significantly high expenses of the child. 

3. Death Benefits

   The child education plans are designed to cover every expense and uncertainty of life. Under these plans, death benefits are also offered to the child in case of untimely demise of the primary policyholder, i.e. a parent. Besides a continued coverage, the policy also facilitates waiving off premiums as an advantage of its in-built rider. Death benefits are usually offered as a lump sum benefit if not chosen the opt-out option otherwise. 

4. Withdrawal and Loans

   You will also have the child's education plans that will offer you a partial withdrawal before maturity. Once the lock-in period is over, partial or full withdrawals are allowed to cover any immediate expenses. Besides, one can also take a loan while keeping the policy as collateral.

Child Education Plan Comparison

The Child Education Plan offers you various benefits absent across multiple investment plans such as Public Provident Fund and Sukanya Samridhi Yojana. One is provided with an excellent return on one's investment that stands at 11%-14%. In addition, the insurer will pay the premium in the policyholder's demise. The regular payments will fund the child's education, and there's also the lump sum payment to the parents. In addition to that, it also acts as an emergency fund. 

1. HDFC Life YoungStar Udaan Child Plan

   The plan covers almost all the expenses of your child. However, in the case of the policyholder's death, there are two benefits. In one, the benefit is paid on death, and the policy gets terminated. However, another one where the death benefit is paid on death, but the policy continues. In addition to that, you can customize the policy according to the needs of your children. In this case, it will be better to take your preferences into account and decide in sync with them. 

   Eligibility	Minimum	Maximum
   Entry	30 Days	60 Years
   Maturity	18 Years	75 Years
   Premium	Monthly and quarterly	Half-yearly and yearly.

   • Money Back plan with various interesting features

   • Two death benefit options as Classic and Classic Waiver

   • Three options for maturity benefits, as per the child's achieved milestones: Aspiration/Academia/Career

   • Guaranteed additions at maturity

2. ICICI Pru Smart Kid Solution

   ICICI Prudential Life Insurance Company offers the Smart Kid Solution plan. It is a brilliant plan to create funds and invest in the future needs of your child. In addition to that, it also covers the educational milestones of the child. 

   Eligibility	Minimum	Maximum
   Entry	20 Years	54 Years
   Maturity	30 Years	64 Years
   Premium	Annual	Half-Yearly and Monthly

   • A ULIP to grow investments to reach the child’s educational milestones

   • No upper limit on the premium amount

3. LIC Child Career Plan

   Designed by the Life Insurance Corporation of India, the LIC Child Career Plan caters to your child's future requirements. The plan offers you convenience, and you will get to choose the maturity, policy term, payments, and waivers. In addition to that, the risk cover can be further extended to seven years. 

   Eligibility	Minimum	Maximum
   Entry	0 Years	12 Years
   Maturity	23 Years	27 Years
   Premium	Quarterly and yearly	Monthly and half-yearly

   • Premium waiver benefit available in case if the parent dies( not applicable in suicide cases)

   • Simple reversionary and other additional bonuses available

4. LIC New Children's Money Back Plan

   Designed by the Life Insurance Company of India, the Career Plan caters to your child's future requirements. Moreover, the plan offers one convenience, and the nominee will also get the death benefits in case of the policyholder's demise. 

   Eligibility	Minimum	Maximum
   Entry	0 Years	12 Years
   Maturity	-	25 Years
   Premiums	Monthly and quarterly	Half-Yearly and Yearly

   • A loan facility against the policy is available.

   • Policyholders can participate in the Corporation’s profits to earn bonuses through the same.

   • The policy can be surrendered after three years.

5. Max Life Future Genius Education Plan

   Offered by the Max Life Insurance Company, the Genius Education Plan provides an excellent opportunity to prepare funds for the child's future educational needs. In addition, it offers various kinds of generous benefits such as customization of the plan, money backs, maturity benefit, death benefit, premium waivers, and much more. 

   Eligibility	Minimum	Maximum
   Entry (Child)	21 Years	45 Years
   Maturity	-	66 Years
   Premium	Yearly and half-yearly	Monthly and quarterly

   • Four guaranteed money back in the last four policy years.

   • Three Bonus options available: Premium Offset/Cash/Paid-up Additions

   • Rider benefits available

6. Max Life Shiksha Plus Super

   The plan allows you to customize the policy. You can choose your term and premium. In addition to that, you will be offered Family Income Benefit. It's equally important to mention that you are allowed to make a partial withdrawal if an immediate expense. In case of the policy holder's death, the nominee will get a death benefit, a lump sum amount, family income benefit, and assistance on the future premiums. 

   Eligibility	Minimum	Maximum
   Entry	21 Years	50 Years
   Maturity	60 Years	65 Years
   Premium	Quarterly and yearly	Monthly and half-yearly

   • ULIP with 6 Fund options available

   • Guaranteed annual loyalty additions after 11 policy years

7. Reliance Child Plan 

   This is yet another excellent option for the needs of your children. It offers you a secure cover for your child, and it will also offer you tax benefits. It's a brilliant choice to fund your children's education. You will also be offered 25% of the sum assured in maturity. 

   Eligibility	Minimum	Maximum
   Entry	20 Years	60 Years
   Maturity	30 Years	70 Years
   Premium	Quarterly and yearly	Monthly and half-yearly

   • Guaranteed benefits are added periodically.

   • Parent’s life insured for the child’s benefit

8. SBI Smart Champ Insurance

   This is yet another excellent option for the needs of your children. It offers you a secure cover for your child, and it will also offer you tax benefits. It's a brilliant choice to fund your children's education. It also offers you coverage in total permanent disability. 

   Eligibility	Minimum	Maximum
   Entry Age	Child : 0 Years Parent: 21 years	Child: 13 Years Parent: 50 years
   Maturity Age	42 Years	70 Years Child: 21 years
   Premium	Monthly and quarterly	Half-yearly and yearly

   • Triple benefits of Waiver of due Premium, Immediate Payment, and Smart Benefits available, in case of parent’s death. 

   The insurance market has an abundance of child education plans. However, one will need to do extensive research before concluding. In this regard, nothing is to be taken for granted. Child Education Plan Comparison is a careful process, and one must make sure that one reads the terms carefully.

Child Savings Plan vs Sukanya Samriddhi Yojana Scheme and Public Provident Fund

How Much Should I Invest In a Child Plan?

It will depend on a lot of things. The first thing that you must ascertain is when exactly you will need the funds for assistance. In this regard, one must consider your child's age and the time one will need to save. The next thing is to assess the potential financial needs of the child for higher education, skill enhancement, or marriage. 

Considering the inflation, every plan must offer coverage on the higher sides with a favourable rate of return to stay assured against future uncertainties. One can also use online child plan calculators to decide sum assured and other features of the policy.

Conclusion

A little research in inflation and various other factors will help assess the financial risks and the future needs of your child. This knowledge will come in handy while selecting the plan. Compare as many plans as you want to and choose the best to suit all your child’s future needs.