With a child plan, you can simplify the investment for your child’s future. By combining investment with insurance, these plans ensure a financially secure future for your child. Whether it's saving for the child's higher education or creating a financial safety net in case of an unforeseen event, child plans cover everything. Besides, these plans allow you to create a realistic corpus to meet the child’s future goals and ambitions.
Secure your child's future with or without you
Create wealth for child’s aspirations
Tax Free maturity amount+
12+ plans available
Invest ₹10k/month your child will get ₹1 Cr Tax Free*
Child education plans are a combination of insurance and investment. These plans are designed to help parents like you to financially secure your child’s future in a disciplined way. In a child education insurance plan, you pay a premium (monthly, half-yearly, yearly, or single-pay) for a specific period. At the end of the policy term, you get a lump-sum amount as the maturity benefit. While you create a corpus for the child's education, the insurance element provides you with life cover.
In case of the unfortunate death of a parent (the policyholder), a child plan supports the nominee with triple benefits. While the life cover amount is paid to the family, the remaining premiums of the plan are paid by the insurer. Also, the child gets the benefit of a monthly payout to meet his/her expenses. That means, even in your absence, the child can use this amount to cover educational costs such as tuition fees, books, uniforms, etc. Besides, child insurance plans offer flexible payout options at important milestones of your child’s education.
|Plans||Entry Age||Maximum Maturity Age||Minimum Investment Amount (annually)||Minimum Sum assured|
|TATA AIA Fortune Pro- WOP||18-59 years||75 years||Rs 12,000/-||-|
|TATA AIA Fortune Pro||18-59 years||40 years||Rs 12,000/-||For Single Pay – 1.25 times the
For Regular / Limited Pay – 7 * AP
|Max Life Online Savings Plan- Child Plan||18-54 years||85 years||Rs 12,000/-||The minimum Sum Assured is Rs. 1,20,000|
|Bajaj Allianz Smart Wealth Goal- Child Wealth||18-60 years||85 years||Rs 48,000/-||10 times Annualized Premium|
|ICICI IPru Smart Kid Plan||18-65 years||64 years||Rs 25,000/-||Minimum Sum Assured (Single Pay) -1.25 x Single Premium
Minimum Sum Assured (Regular Pay)- 7 x Annual Premium
Capital Guarantee Solution
|18-50 years||75 years||Rs. 51,000/-||Minimum Sum Assured (Single Pay) -1.25 x Single Premium
Minimum Sum Assured (Regular Pay)- Higher of (10*AP OR (0.5*Policy Term*AP)
|Max Life Capital Guarantee Solution||18-50 years||85 years||Rs. 37,200||The Minimum Sum Assured is Rs. 1,20,000|
|BAJAJ Allianz Capital Guarantee Solution||18-55 years||65 years||Rs. 20,000||The Minimum Sum Assured is Rs. 30,000|
|Aditya Birla Capital Guarantee Solution||0-58 years||85 years||Rs. 38,400||Minimum Sum Assured (Single Pay)- Rs.100,000
Minimum Sum Assured (5 Pay)- Rs.20,000
Minimum Sum Assured (6-12 Pay)- Rs.30,000
|HDFC Life Capital Guarantee Solution||18-50 years||85 years||Rs. 12,000||1.25 times the
|PNB MetLife Capital Guarantee Solution||18-60 years||80 years||Rs. 51,000||Minimum Sum Assured (Single Pay)- Rs. 100,000
Minimum Sum Assured (5 Pay): 12,000
Minimum Sum Assured (Regular Pay & 10 Pay): 12,000
|Kotak Life Capital Guarantee Solution||18-50 years||99 years||Rs. 21,000||10 times Annualized Premium|
|Edelweiss Tokio Wealth Secure Plus- Child||18-40 years||100 years||Rs 24,000/-||7 x Annualized Premium|
In case of the policyholder’s untimely death, a child insurance plan provides triple benefits for complete protection.
The life cover is paid to the nominee/family members to meet immediate expenses.
Future premium amounts of the market-linked plan are paid by the insurer. Upon maturity, the amount is paid to the child.
The child gets monthly income to meet the regular expenses.
*Varies on the basis of different plans.
Here are the key features of a child education plan:
Lump-sum Benefit: The plan provides a lump-sum benefit to your children in the unfortunate event of your death within the policy term. This ensures that your child's education fund is not compromised, and they can continue their education without financial constraints.
Partial Withdrawals: Child education plans offer flexibility in withdrawals too. You can withdraw your money from funds anytime after 5 years. It helps you meet the child's educational milestones, such as admission fees, tuition expenses, or educational trips.
Waiver of Premium: With a child insurance plan, you can secure your child's future without disrupting premium payments. In the event of your untimely death, the insurance company will take care of the remaining premiums. It ensures that the policy remains active and that your child doesn’t have to compromise his/her educational goals.
Tax Benefits: As the policyholder, you get tax benefits under sections 80C and 10 (10D) of the Income Tax Act. This means that the premiums paid towards the plan are eligible for tax deductions, reducing your overall tax liability. The tax benefits help maximize the returns on your investment, allowing you to save more for your child's education.
Life Cover: One of the top reasons to buy a child insurance plan online is the life cover component. This means that if something unforeseen happens to you during the policy term, a predetermined sum assured will be paid to your child. This ensures that the child's education is not disrupted even if you are not around.
|Sections of the Income Tax Act, 1961||Tax Benefits|
As a parent, you undoubtedly want to provide your child with the best education possible, whether it's at esteemed national institutions or prestigious foreign universities. However, relying solely on your savings may not be sufficient to meet the various expenses associated with such education. Market-linked child plans can enable you to create the necessary funds for fulfilling your child's ambitions.
If you are looking for a safe and reliable investment option for your child's future, capital guarantee solutions are for you. They provide a guarantee that the initial invested capital will be protected, regardless of market fluctuations or economic uncertainties. This means that no matter how the financial markets perform, the principal amount you invest for your child will be safeguarded.
Guaranteed return child education plans are designed to provide a guaranteed return on investment along with insurance coverage for your child's future. These plans offer you a secure way to accumulate funds for your child's education or other important milestones. Unlike market-linked plans, traditional plans offer a predetermined rate of return throughout the policy term. This means that you can plan your child's future with more certainty, knowing the exact amount you will receive at maturity.
Let’s understand this with the help of an example:
Mr Sharma, a 40-year-old professional, invests in a child savings plan for his daughter’s higher education. He can choose to pay the premium as a one-time payment, annually, half-yearly, or monthly. Now, consider the following figures for calculation:
Current age of the child: 10 years
Invested amount (monthly): Rs. 10,000
Invested for 10 Years
Withdraw After 20 Years
Rate of return amount: 19.93%*
In case of outliving the policy term: After the policy matures, the maturity amount that Mr. Sharma will receive is Rs. 1.72 Cr*. The amount can be used for the child’s higher education, considering that the inflation rate is approximately 6%.
And, in case of Mr. Sharma’s death in the 7th policy year, his daughter will still get the life cover**. The child will also get other benefits like a waiver of premiums and a monthly payout depending on the terms of the plan.
*The rate of return is subject to market performance.
**Depending on the plan the nominee will either receive full life cover or partial.
The amount to invest in a child plan depends on various factors, including your financial situation, goals, and the cost of education. It is recommended to start investing as early as possible to take advantage of compounding growth. A general rule of thumb is to aim to save at least 20% of the estimated cost of education. However, this percentage may vary based on your income, other financial obligations, and the time remaining until your child starts their education.
So, setting a realistic budget that aligns with your income and expenses is important. Consider estimating the future cost of education, factoring in inflation and potential scholarship opportunities. Additionally, review the investment options and contribution limits of the specific child plan you choose. You can use our Child Plan Calculator to understand your investment requirements.
By following the steps below, you can make an informed decision and choose the best child education plan for your needs:
Step 1: Visit the ‘Child Plans’ section on Policybazaar’s website
Step 2: Fill in the details on the form, such as Name and Mobile Number
Step 3: Click on ‘View Plans’
Step 4: Enter the required information
The city you reside in
Your age, your child’s age
Your annual income
Step 5: All the child insurance plans list will be displayed.
Step 6: Customize your plan by choosing the
The number of years you want to stay invested
The number of years you want to withdraw after
Step 7: You can easily compare the plans from different insurance companies and choose the one that is suitable for your financial needs.
You can choose plans from Policybazaar and enjoy benefits such as extra payout compared to offline plans. No hidden charges, full transparency, and clear explanations of charges and returns. Expert advice from certified advisors. 100% recorded calls ensure honest selling, with utmost transparency and honesty.
Step 8: After choosing the best child insurance plan, proceed to Pay
If you are not sure which child insurance plan to buy, consider the following key points before making a purchase decision.
Look for Triple Benefits: A child plan offers triple benefits for comprehensive protection. The triple benefit includes life cover for the parent, waiver of premiums on the death of a parent, and monthly income for the child. This structure makes a child plan a perfect choice for securing your child's future.
Check for Partial Withdrawal Options: Child plans offer the option to withdraw up to a limit from the plan during the policy term. This benefit helps you to be prepared financially for the different life stages of your child.
The Reputation of the Insurance Provider: Seek out financially stable companies with a favorable claim settlement ratio. This ensures their ability to fulfill commitments upon plan maturity or in case of unforeseen events.
Plan Flexibility: Look for a child education plan that offers flexibility in premium payment options, policy terms, and coverage, among other things.
Diverse Investment Fund Options: Market-linked child education plans offer you the option to select from different funds like debt, equity, and a combination of both according to your risk appetite.
Also, remember that the earlier you start, the more benefits you get. Starting your investment early helps to build a larger corpus, which in turn, gives greater freedom in making any financial decision.
The claim process for a child insurance plan typically involves the following steps:
Informing the insurance company: In the event of a claim, you should immediately inform the insurance company about the incident. Contact the insurer's customer service or claims department and provide them with the necessary details. You can also reach out to Policybazaar’s dedicated claims settlement team for smooth processing.
Documentation: You will have to provide a few documents to process the claim, including:
Claim form: You need to fill out a claim form with accurate and complete information.
Policy document: Provide a copy of the child insurance policy.
Medical records: If the claim is related to medical expenses, you may need to submit medical reports, bills, prescriptions, and any other relevant documents.
Proof of identity: Submit a valid proof of identity, such as an Aadhaar card, PAN card, or passport.
Incident-related documents: If the claim is due to an accident or loss, you might need to provide relevant documents, such as a police report, FIR (First Information Report), or any other supporting evidence.
Submitting the documents: Gather all the required documents and submit them to the insurance company within the specified timeframe. It is advisable to keep copies of all documents for your records.
Verification and assessment: The insurance company will review the submitted child education plan documents and assess the claim. They may conduct their own investigations or request additional information if needed.
Claim settlement: Once the claim is verified and approved, the insurance company will process the settlement. The settlement amount will depend on the terms and conditions of the child insurance plan. The insurer will pay the policyholder or the nominee, as applicable.
*All savings are provided by the insurer as per the IRDAI approved
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
^Tax benefit are for Investments made up to Rs.2.5 L/ yr.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
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