Child Plan for Education and Marriage

How can Child Plans Help with Education & Marriage?

Child plans are designed to meet the financial requirements of a child in case of a parent's death/ disability/ loss of income. Even in your absence, your child will have the financial means to support themselves.

Further, these child insurance schemes help parents save regularly while also earning market-linked returns. Over time, this creates a bigger corpus that can effectively fund your child’s education or marriage in the long term.

The best child plan thus gives you the benefit of insurance protection, savings, and investments combined.

Best Child Plans For Education & Marriage in India

Some of the best child plans are given below:

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprises insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India, refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in.

Details of the Best Child Plans For Education & Marriage in India

1. Aviva Young Scholar Advantage Plan

   It is a traditional savings plan that provides coverage throughout a child’s education. In this plan, the parent will be insured for the child's benefit.
   Features:

   • Guaranteed annual payouts will start once the premium-paying term ends and will continue till the child turns 17.
   • A lump sum amount will be paid as a college admission fund when the child turns 18.
   • Another lump sum payout at 21 years of age to cover post-graduation expenses.
   • The total assured death benefit amount is paid on the death of the parent without any deductions.
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2. Aditya Birla Sun Life Insurance Vision Star Plan

   It is a traditional money-back policy that provides life coverage to the children against any unfortunate events.
   Features: The insured can avail of money-back benefits in the form of assured payouts once or twice a year.

   • Parents have the flexibility of choosing the sum assured.
   • Bonuses are paid out regularly.
   • Maturity benefits come with accumulated bonuses plus terminal bonuses (if any).
   • Death benefit is equal to the sum assured plus assured payouts plus bonuses.
   • Secured loans are available under this policy

3. Bajaj Life Young Achiever Plan

   The Bajaj Life Young Achiever Plan is a traditional child plan which combines the features of savings and life insurance to ensure the higher education and the marriage of your child.

   • The product combines life cover with savings, which allows a person to build a corpus to fund the marriage and education of their child.
   • If the proposer dies, or is left permanently disabled due to any accident, the policy continues, ensuring that your child benefits from the policy irrespective of the presence of the policyholder.
   • The benefits of the policy are gauranteed along with the life cover.

4. LIC New Children’s Money Back Plan

   It allows parents to save regularly, after which it pays out survival benefits that help fund milestones in a child’s life such as education or marriage.
   Features:

   • The policy can be purchased for a child aged 0 to 12 years.
   • Survival benefits are paid out when the child turns 18 years, 20 years and 22 years.
   • Survival benefit each year is equal to 20% of the sum assured.
   • At maturity of the policy, the final 40% of the sum assured is paid out in a lump sum along with bonuses.

5. HDFC Life Young Star Udaan

   It is a money-back child scheme to cover future education and marriage expenses. On the parents' death, this plan provides the death benefit with guaranteed add-ons.
   Features:

   • Three maturity benefit options are available according to the child's needs: Aspiration, Academia, Career.
   • On the death of the parents, there are two choices available to the children and their families.
   • (a) Classic Option - The policy will come to an end upon payment of death benefits.
   • (b) Classic Waiver Option - On payment of the death benefit, the policy will continue, but the future premiums will be waived.
   • In the first five years of the policy tenure, guaranteed add-ons are paid.

6. Axis-Max Life Shiksha Plus Super

   It is a unit-linked child insurance plan designed to help children with their education and marriage expenses through high returns from the market.
   Features:

   • Partial withdrawal of funds is allowed in case of unfortunate events.
   • The insured can choose the policy tenure and PPT.
   • The insured can invest in five different funds with different degrees of risk.
   • The policy offers family income benefits along with future funding of premiums.
   • Loyalty add-ons are paid along with the maturity amount.

7. Reliance Nippon Life Child Plan

   This is a Traditional Money Back plan where 25% of the sum assured will be paid in the last four years of the policy term. It ensures guaranteed benefits to the child for their future needs.
   Features:

   • Guaranteed payments at regular intervals.
   • The insured can avail of three riders: critical illness rider, total disablement rider, permanent disablement rider, accidental death benefit, and family income benefit rider.
   • Accrued benefits are paid on the maturity date along with the lump sum maturity benefit.

Factors to Consider When Choosing the Best Child Plan for Education and Marriage

It is essential for any parent to consider the following factors before you invest in any child plan for the education or marriage of your child.

• Financial Goal: Before investing in any child plan, ensure you set a goal. The goal allows you to align your investment to a tangible product. You can invest in a child plan for the future education of your child or their marriage.
• Future cost of your goal: Before investing, calculate the future cost of the goal. Inflation can increase the cost of your goal over time; it is essential for you to take the future cost of your goal into account so that your final corpus is sufficient to undertake the goal.
• Time horizon of investment: The time horizon of investment can affect your final corpus to a large extent. A longer time horizon can allow your investment to grow and create more wealth over time as compared to a shorter horizon of investment. Goals such as marriage and education need longer time horizons due to their high cost.
• Risk appetite: Before investing in a child plan, assess your risk appetite. If market fluctuations don’t bother you, you can invest in market-linked child plans. However, if you are risk-averse, choosing a traditional option might be the best for you.
• Tax Benefits: Before investing, always check whether the investment and maturity proceeds qualify for applicable tax benefits or exemptions under prevailing tax laws.

Conclusion

Every parent wishes to fulfil their child's future life goals, either for their higher education or marriage. Opting for a child plan is the best way to fulfil them. The returns from such a plan can potentially beat education inflation and cover the ever-soaring expenses of a wedding.