Child Education Plans Vs Child Insurance Plans - Know The Difference

Both child education plan and child insurance plans are for ensuring a secure future for your child, albeit with a difference. Education plans as the name suggests are specifically for the ongoing education of kids, right from the time they enter school. There are predetermined maturity stages, which allow funding at definite periods related to your child’s growing up years. Child insurance plans on the other hand provide maturity full-term amounts or compensates the child and allow them to continue their education in the event of the unfortunate death of a parent.

Read more
Best Child Saving Plans
  • Insurer 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*

+91
View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

Here are some points of difference between the two. 

Short-term V/s Long-term Plan

Most child education plans are short-term. With quarterly or annual payouts on the maturity of the sum invested. In such a kind of arrangement, you can project for the near future and get benefits at definite stages. For example, those who start investing in education plans when their child is in kindergarten can easily cover the primary education costs. Similarly, when you start investing when the child is in the secondary phase, get maturity financial benefits during the college life of your young one.

Child insurance plans on the other hand are long-term investments that parents can choose for their children. One can start directly from birth or even before that. The maturity tenure remains pre-determined and it covers the risks involved with the death of the parent.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Out and Out Education Benefits V/s Death Benefits

Child education plans as the name suggests are only for covering the education cost of your child. This is a clear and precise plan that funds the costs related to studies in the various stages of student life. It is wrong to expect anything else from such a policy.

The scope of child insurance plans is far wider. The main aim behind the insurance plans for your child is to provide him or her with an uninterrupted chance at education irrespective of the presence or absence of a parent. While nothing can substitute a well-wishing parent, it will be wrong to deny the power of strong financial backing. Even when the policyholder dies or loses their job because of permanent disability, the child can continue with education in the same vein without problems, thanks to the child's education plans.

Limited V/s Expansive Benefits

There is no doubt regarding the fact that child education plans have a limited scope when it comes to related benefits. It is specifically for the education of your child. Child insurance plans on the other hand provide financial help, which the policyholder can spend any way chosen, albeit for the good of their child. Use the maturity amounts on your child’s education, wedding, or for giving them a start in life. The limit of use depends upon the scope of the imagination of the policyholder.

Wrapping It Up! 

Child education and insurance plans both have definite benefits for the policyholder and the child involved. The difference lies in the tenure, the maturity period, as well as the benefits involved. Consider your situation or your expectations from a particular policy and start searching!

Child plans articles

Recent Articles
Popular Articles
Which Is The Best Plan For Girl Child?

30 May 2022

Picking the best plan for your daughter may seem like a task but...
Read more
Government Child Education Plan

30 May 2022

India is a country that witnesses a huge school drop-out rate of...
Read more
15 Year Child Education Insurance Plan

30 May 2022

Child life insurance policies are used to build a fund to cover...
Read more
Triple Benefit Child Plan

30 May 2022

These are child plans that offer combined benefits of a life...
Read more
Child Care Plan

30 May 2022

A comprehensive child care plan should be a combination of both...
Read more
Best Child Investment Plans to Invest in 2022
Planning for the child’s secured future is not an easy task. Most of the people try to create a strong financial...
Read more
LIC Policy for Girl Child in India
A child insurance plan is a plan that acts as a blend of investment and savings while also providing the child...
Read more
Prime Minister Schemes For Boy Child
Like the Prime Minister’s Sukanya Samriddhi Yojana savings scheme for a girl child, there are several...
Read more
Post Office Child Plans
Individuals can open post office savings account for their children and earn interest at a rate of 4% to nearly...
Read more
Best Child Insurance Plans in India
A child insurance plan is a combination of savings and insurance, which help the individuals to plan for the...
Read more
top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL