Child Future Plans

The safety of a child is the priority of every parent. Parents always want to provide the best to their children and ensure that the child has a safe and guarded future. However, fulfilling all the requirements of the child can often be a challenging task. Thus, the best way to plan for your child’s future is to invest in the child future plan.

By investing in a child future plan you can financially secure the future of children and supports them in every milestone of life like for higher education, marriage, and other important events in life. To help you know more about the child's future plan, here we have discussed briefly some of the best child future plans to invest in.

Top Child Future Plans in 2020

Plan Name	Entry Age	Policy Term	Premium Payment option	Sum Assured
SBI Life Smart Champ Insurance Plan	Insured- 21/50 years Child- 0/13 years	21 years	Single pay/ limited pay	Rs.1 lakh/Rs 1crore
SBI Life Smart Scholar	Insured- 18/57 years Child- 0/17 years	8 years-25 years	Single pay/ limited pay	1.25 times of single premium   Limited premium-10X Annualised premium
PNB Metlife Smart Child Plan	Insured- 18/55 years Child- 90 days /17 years	10 years, 15 years – 20 years	Equal to the policy term	10 X annual premium
Bajaj Allianz Young Assurance	18/50 years	10 years, 15 years  & 20 years	Regular pay & limited pay	10 X annual premium
Aviva Young Scholar Secure Plan	Insured- 21/50 years Child- 0/12 years	21 years- the entry age of the child	Regular pay	Depends on the age of the child, parents and plan option chose
Aegon Life Rising Star Insurance Plan	Insured- 18/60 years Child- 1/15 years	25 years- the entry age of the child	Equal to the policy term	-
Birla Sun Life Vision Star Plan	18/55 years	16-23 years/ 14-21 years	Limited pay	Rs.1lakh/No upper limit
Canara HSBC Smart Junior Plan	18/50 years	12-25 years	Limited pay	Annual mode- Rs.3 lakh Monthly mode-Rs.5 lakh/ No upper limit
Exide Life Mera Ashirvad	21/50 years	PPT+5 years	Limited pay	Rs.3, 50,000/ No upper limit
Future Generali Assured Education Plan	21/50 years	17 years-the age of the child	Equal to the policy tenure	--
HDFC Life Young Star Udaan Child Plan	0/60 years	15-25 years	Limited pay	Depends on the premium chosen, age, term, and PPT
ICICI Prudential SmartKid Solution	Insured- 20/60 years Child- 0/12 years	10-24 years	Equal to the policy term	Rs.1 lakh/ Rs.30 lakh
Kotak Headstart Child Assure Plan	18/60 years	10,15-25 years	Regular, limited pay	--
LIC New Children’s Money Back Policy	0/12 years	25 years	Equal to the policy tenure	Rs.1 lakh/no upper limit

1. SBI Life Smart Champ Insurance Plan

This is a non-linked participating child insurance plan, which ensured the child’s financial security for the future so that he/she can pursue his/her ambitions and dreams even in the absence of the parents. let’s look at the features and benefits of the policy.

Features and Benefits of SBI Life Smart Champ Insurance Plan

• This plan comes with an option of a one-time premium payment (Single premium payment) or limited premium payment.
• The plan comes with an inbuilt waiver of premium rider and accidental total and permanent disability rider.
• A vested bonus or terminal bonus is paid to the child on the maturity of the policy.
• In case of an unfortunate demise of the insured person during the tenure of the policy, a lump-sum amount equal to the higher of sum assured amount or 105% of the total premium amount is paid to the beneficiary of the policy.
• For a single premium, higher of basic sum assured or 1.25 times of single premium is paid to the beneficiary of the policy in the event of the uncertain demise of the insured person.
• Premium discounts are offered for a higher sum assured amount of Rs.2 lakh and above.
• Loans can be availed under the SBI child plan up to a maximum of 90% of the surrender value.

 

2. SBI Life Smart Scholar

This is a Unit linked child insurance plan, which helps to create a financial cushion for children in the long-term along with the benefit of insurance coverage. The following are the features and benefits of the policy.

Features and Benefits of SBI Life Smart Scholar

• This plan comes with an option of a one-time premium payment (Single premium payment) or limited premium payment.
• As one of the best one-time investment child plans, it comes with an inbuilt waiver of premium rider and accidental total and permanent disability rider.
• The plan offers the option to choose from 7 different fund options to invest in.
• One free partial withdrawal is allowed every year, provided the minimum amount of withdrawal is Rs.5000 and the maximum is 15% of the fund value.
• In case of an unfortunate demise of the insured person during the tenure of the policy, a lump-sum amount equal to the higher of sum assured amount or 105% of the total premium amount is paid to the beneficiary of the policy.
• The insured can also avail tax benefit U/S 80C and 10(10D) of the IT Act.

 

3. PNB Metlife Smart Child Plan

This is a unit-linked child investment plan, which offers guaranteed benefits to the policyholder. The plan helps the insured to create a financial cushion for the child in the long-term and also provides protection against any type of eventualities. Let’s take a look at the benefits and features of the policy.

Features and Benefits of PNB Metlife Smart Child Plan

• The plan offers a loyalty addition bonus for the policy tenure of 15-20 years.
• The plan offers 6 fund options to invest in.
• The fund value + loyalty addition is paid to the insured on the maturity of the policy.
• The plan comes with an inbuilt premium waiver benefit rider.
• The plan offers the option of 4 free switches between funds in a year.
• Tax benefits can be availed U/S 80 and 10(10D) of the IT Act.

 

4.  Bajaj Allianz Young Assurance

As one of the best child future plan, Bajaj Allianz Young Assurance offers insurance coverage to the child along with the benefit of savings for the child’s secured future. This is a traditional endowment plan which offers the dual benefit of savings cum insurance protection. Let’s take a look at the features and benefits of the policy.

Features and Benefits of Bajaj Allianz Young Assurance

• This is a traditional endowment policy which offers the benefit of bonuses.
• The plan also offers a guaranteed additional benefit to enhance the benefits payable.
• The plan comes with inbuilt accidental permanent and total disability benefit rider.
• The policy offers regular and limited premium payment options.
• Tax benefits can be availed U/S 80 and 10(10D) of the IT Act.
• The insured can take the loan if the policy has acquired a surrender value.

 

5.  Aviva Young Scholar Secure Plan

This is a traditional money back one of the best child future plan, which aims to provide financial security to the child and take care of their future liabilities. The following are the features and benefits of the policy.

Features and Benefits if Aviva Young Scholar Secure Plan

• The policyholder has the option to choose from 4 different variants of plan i.e.
  • Silver
  • Gold
  • Diamond
  • Platinum
• The policy comes with an inbuilt premium waiver benefit rider.
• Apart from the inbuilt rider benefit the plan also offers 3 other rider benefits that can be purchased to enhance the coverage of the policy.
• The policyholder can avail of the benefit of tax exemption under Section 80C and 10(10D) of the Income Tax Act.
• In the event of the unfortunate demise of the insured during the tenure of the policy, the death benefit is paid to the beneficiary (child) as the total sum assured amount and rest of the premium is waived off.

 

6.  Aegon Life Rising Star Insurance Plan

This is unit-linked insurance, which offers the combined benefit of insurance cum investment. The plan helps to secure the financial future of the child and provide protection against any type of eventualities. Here are the features and benefits of the policy.

Features and Benefits of Aegon Life Rising Star Insurance Plan

• The plan provides an opportunity to gain long-term investment returns.
• on the maturity of the policy fund value is offered to the policyholder.
• In case of the demise of the insured during the tenure of the policy, the death benefit is paid to the beneficiary as total fund value + sum assured amount.
• The plan offers 4 different fund options to choose from.
• The plan offers add-on rider benefits to enhance the coverage of the policy.
• Tax exemption can be gained U/S 80 C and 10(10D) of the IT Act.

 

7.  Birla Sun Life Vision Star Plan

This is a traditional money back plan, which helps to create a saving fund for the child and also provides the benefit of insurance coverage.  The plan helps to create a financial cushion for the child’s secured future so that he/she can achieve the major milestones in life even in the absence of the parents. let’s take a look at the features and benefits of the policy.

Features and Benefits of Birla Sun Life Vision Star Plan

• This is a traditional participating plan which earns the benefit of bonuses.
• The plan offers a limited premium payment option.
• The money-back benefit under the plan can be availed in tow different options.
• The plan comes with an inbuilt waiver of premium rider.
• Premium discounts are offered for the higher sum assured amount.
• The benefit of tax exemption can be gained U/S80C and 10(10D) of the Income Tax Act.

 

8.  Canara HSBC Smart Junior Plan

This is another option of the best child future plan, which offers the combined benefit of savings cum protection. Canara HSBC Smart Junior Plan is a non-linked participating endowment policy, which is specifically designed to take care of the financial needs of the child in the future. Let’s take a look at the benefits and features of the policy.

Features and Benefits of Canara HSBC Smart Junior Plan

• The plan guarantee payouts for the education of the child.
• The plan provides the combined benefit of investment cum insurance.
• The plan helps the insured to create a financial cushion in the long-term.
• On survival of the policy, the maturity benefit is paid as guaranteed lump-sum payment equal to 20% of the sum assured amount along with final bonus and annual bonus if any.

 

9.  Exide Life Mera Ashirvad

This is a traditional savings cum protection plan that pays out money at the important milestones of the child’s future like higher education, marriage, etc. the plan offers guaranteed benefits to the insured and protects the financial future of the child. Here are the features and benefits of the policy.

Features and Benefits of Exide Life Mera Ashirvad

• The plan offers the option of limited premium payment.
• The maturity benefit is offered is two varients option A and option B with different payout structure.
• The premium payment tenure of the policy depends on the child’s age.
• Under option B a guaranteed addition bonus of 5% is added to the sum assured amount.

 

10.  Future Generali Assured Education Plan

As one of the best child future plan, this plan is specifically designed to provide financial protection to the child in and take care of their future liabilities. Let’s take a look at the features and benefits of the policy.

Features and Benefits of Future Generali Assured Education Plan

• The plan offers three different options for maturity benefit.
• Loan facility can be availed up to a maximum of 85% of the surrender value.
• The plan comes with an add-on accidental death benefit rider to enhance the coverage of the policy.
• The insured can save on taxes under Section 80C and 10(10D) of the Income Tax Act.

 

11.  HDFC Life Young Star Udaan Child Plan

This is a traditional child future plan, which offers multiple benefits to the policyholder. The plan offers the combined benefit of endowment and money-back plans for the secured future of the child. The following are the features and benefits of the policy.

Features and benefits of HDFC Life Young Star Udaan Child Plan

• This is a child investment policy, which offers limited premium payment options.
• The death benefit is paid out in two different variants i.e. classic and classic waiver.
• The maturity benefit of the policy is offered in 3 different options i.e. Aspiration, Academia, Career.
• Guaranteed addition bonus is applicable after completion of the first 5 policy years enhancing the benefits of the policy.
• Maturity proceeds also include interim bonus, reversionary bonus and terminal bonus, if any.

 

12.  ICICI Prudential SmartKid Solution

This is a traditional endowment plan, which provides an opportunity for the policyholder to create funds for the future along with the benefit of insurance coverage. The plan benefits the children and takes care of future liabilities. The following are the features and benefits of the policy.

Features and Benefits of ICICI Prudential Smart kid Solution

• The maturity benefit of the policy is offered in two different options.
• The plan offers the option of add-on rider benefit income benefit rider and accidental disability benefit rider to enhance the coverage of the policy.
• The policy comes with an inbuilt waiver of premium rider.
• The insured can avail tax benefit U/S 80C and 10(10D) of Income Tax Act.
• The policy offers the benefit of bonuses.

 

13.  Kotak Headstart Child Assure Plan

As one of the best child investment plan, this plan offers the combined benefit of protection and wealth creation. The plan helps in systematic investment in order to create a corpus for the child’s future.  Let’s take a look at the features and benefits of the policy.

Features and Benefits Kotak Headstart Child Assure Plan

• This is a UNIT linked insurance plan without a bonus facility.
• The plan offers 7 different fund options to invest in.
• The triple benefit offered by the policy ensures the financial security of the child, in case of the demise of the parents during the tenure of the policy.
• The insured can make free switches between funds.
• Tax benefits can be availed under Section 80C and 10(10D) of the Income Tax Act.

 

14.  LIC New Children’s Money Back Policy

LIC New Children’s Money Back Policy is an insurance cum investment plan, which helps to secure the financial future of the child and take care of their liabilities in case of an emergency. The following are the features and benefits of the policy.

Features and Benefits of LIC New Children’s Money Back Policy

• This is participating non-linked money back plan, which offers the facility of bonus.
• Tax benefits can be availed under Section 80C and 10(10D) of the Income Tax Act.
• One can avail the facility f loan under the policy.
• The plan helps the insured to create a financial cushion in the long-term.

 

Wrapping It Up!

By making the right investment in the child future plan, one can ensure financial security for their child.  You can compare the above-mentioned plans and choose the best one as per your own choice and requirement.