A comprehensive child care plan should be a combination of both investments and insurance. The former allows parents to save and grow funds for their kids’ future. If you add an insurance component to it, you can ensure that the child is protected even in times of adversity. While there are no insurance schemes by the name of Child Care Plan, there are several fund options that serve similar needs. If you couple these funds with a term insurance plan or a child ULIP, you can ensure well-rounded financial protection for your kid.
Read moreInsurer pays your premiums in your absence
Invest ₹10k/month and your child gets ₹1 Cr tax free*
Save upto ₹46,800 in tax under Section 80(C)
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Nothing Is More Important Than Securing Your Child's Future
Invest ₹10k/month your child will get ₹1 Cr Tax Free*
Let’s look at the different options to give you an idea of the best possible ways to secure your child’s future.
These investment instruments park your money in the equity market. You earn generous returns on your investments if the market performs well. Some important pointers to note about these child care plans are:
The risk of investment in these funds is high and borne entirely by the investor.
You should invest for a longer term, possibly more than 5 years to earn the best returns.
The returns can be used towards a child’s education or their marriage.
Most of these funds come with a lock-in period, during which the investor or the child cannot withdraw any money. This period allows capital appreciation and your money to grow.
You can choose to invest a lump sum amount or a monthly sum through a SIP (systematic investment plan).
SIPs are easier on the pocket and balance out the risk to an extent.
The following table lists examples of child care funds that allow parents to grow their savings for their children’s future.
Name of Fund | Description |
SBI Magnum Children’s Benefit Fund Growth |
|
ICICI Prudential Child Care Fund (Gift Plan) |
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HDFC Children's Gift Fund |
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Disclaimer: Policybazaar does not rate, endorse or recommend any specific insurance provider or insurance product offered by any insurer.
Child plans such as ULIPs (unit-linked insurance plans) have the additional advantage of insurance protection. The combined benefit of market-linked returns and insurance make these plans ideal for children. Key benefits of such child care plans are:
Future premiums are waived off on the death of the parent.
A part of the premium is invested in market linked funds such as equity and debt.
On the parent’s demise, the child receives the death benefit amount.
The investment risk is borne by the parent.
Some insurers may provide loyalty benefits to existing customers.
Investors have flexibility in choosing funds and investment strategies.
Investors can enjoy tax benefits under the existing tax laws in the country.
Name of Fund | Description |
SBI Life Smart Scholar |
|
HDFC SL YoungStar Super Premium |
|
Max Life Shiksha Plus Super |
|
Disclaimer: Policybazaar does not rate, endorse or recommend any specific insurance provider or insurance product offered by any insurer.
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