Upbringing a child and providing them with the best of everything is a great responsibility for every parent. For every individual, their children are the main priority of life and in order to facilitate your child with a quality life, it is important to do proper planning and secure them financially from future eventualities.
The best way to save for your child’s future is to have a child insurance plan by your side. By investing in a child plan , one can gradually build a corpus for the future of the child.
With the rising inflation in the country, parents are often stuck with questions like what are the right investment options that one should look for. Here are the top 10 child plans to invest in 2018.
1. Aviva Young Scholar Advantage Plan-
This child education plan is a non-participating unit-linked plan that helps to create corpus for future through market investments. Some of the best features offered by Aviva Young Scholar Advantage plan are:-
- This is a ULIP child insurance plan that provides comprehensive life coverage to the insured.
- For allocating the assets for investments, the plan provides an option of 7 different funds to choose from.
- The plan also provides Liquidity of fund.
- With the help of options like Systematic Transfer Plan, Automatic Asset Allocation and option to switch between funds the management and maintenance of investment portfolio are made easier.
- At different stages of policy tenure the loyalty additions are also paid out.
- Under this child education plan the insured is beneficiated with both death benefit and maturity benefit.
- The plan also provides add-on benefit as in-built accidental death benefit rider.
2. Max Life Shiksha Plus Plan-
This child plan is also a non-participating unit linked plan that provides the dual benefit of saving cum investment. Moreover, to facilitate the child with best of everything the plan comes with an inbuilt waiver of premium rider. Some of the silent features of the plan are:-
- This is a unit linked non- participating child education plan.
- The plan continues to provide its services even after the demise of the policy holder.
- Only those buyers whose children are aged between 0-18 years can avail this policy.
- Funding of Future premium is offered by the policy under which all the future premium due under the policy is waived off in case of demise of the insured person.
- The insured is offered a guaranteed payment of loyalty addition once the policy comes to its completion.
- Based on the risk appetite of an individual, the plan offers an option of 6 funds for a diversified asset allocation.
3. Metlife College Plan-
This is deferred participating non-linked endowment plan that offers a dual benefit of saving cum protection. The insured is benefited with the guaranteed additional bonuses along with the death and maturity benefit. The sum assured amount is immediately paid out to the beneficiary as death benefit in case of demise of the life assured. Listed below are some of the best features offered by the policy:-
- The plan provides flexibility from 12-24 years of saving option.
- Before the maturity of the policy the plan provides a guaranteed additional bonus for the child’s education for three years.
- Under section 80C and 10D of Income tax act the premium paid and the maturity benefit are exempted from tax deduction.
4. ICICI Prudential Smart Kid Premier Plan-
ICICI Prudential Smart Kid Premier plan is a ULIP non-traditional plan without bonus facility. The plan provides financial security to the child’s future in case if anything happens to the parents. The key features of ICICI Prudential Smart Kid Premier Plan are:-
- The insured can take advantage of joint life coverage under the plan.
- The plan provides death benefit and maturity benefit to the beneficiary of the policy. Besides this, all the future premiums are waived off in case of demise of the insured.
- During the entire tenure of the policy the sum assured can be increased or decreased.
- The plan offers a rider benefit.
- The insured can choose from the option of 8 investment funds.
5. SBI Life Smart Scholar Plan-
This is a unit linked non-participating plan that provides the dual benefit of investment cum insurance. In order to match the investment strategy of the insured the plan offers seven fund options. Besides this, the plan provides add-on benefits as riders like accidental death benefits and accidental total and permanent disability rider. Premium waiver benefit is also offered under the plan. some of the key features offered by the policy are:-
- As a ULIP plan the SBI Life Smart Scholar Plan offers a premium payment option in limited mode.
- The plan provides loyalty additions which increases the fund value are is paid to the beneficiary of the policy in case of demise of the life assured.
- The plan provides an option of 7 fund investment to the insured.
- Under section 80C and 10D of Income Tax Act the premium paid and maturity benefits are exempt from tax deduction.
6. Aegon Life EduCare Advantage-
This is a traditional money back policy with a limited premium payment mode. Along with the death benefit and maturity benefit the plan provides terminal bonus (if any) and simple reversionary bonus. The key features of the policy are:-
- A guaranteed payout is offered during the last 4 policy years.
- The policy holder gets rebate on the large sun assured.
- The plan provides options of 2 death benefits.
- By the bonus facility offered under the policy the benefit amount is increased every year.
- The insured can avail tax benefit under section 80C and section 10D of Income Tax Act.
7. HDFC SL Young Start Super Premium-
This is a unit linked plan that provides a regular premium payment mode. The plan secures the future of the child financially through accelerated growth and also provides life coverage to the child in case of any eventuality. Here we have discussed some of the best features of the policy:-
- The plan provides 2 options of life coverage life option and life and health option.
- The insured can choose from 4 fund options available for investment.
- The policy holder can avail tax benefit under section 80C and section 10D of Income Tax Act.
8. SBI Life Smart Champ Insurance Plan-
This is non-linked participating life insurance plan designed especially to fulfill the education requirements of the child and entitle them with a bright future. The plan offers assured benefit and built a corpus which is provided as accumulated bonus at the end of every policy years. Some more key features offered by the policy are:-
- It is a non-linked traditional participating plan that provides an option of single pay and limited premium payment.
- The plan comes with an inbuilt accidental total and permanent disability rider. Moreover, it also provides the benefits of waiver of premium rider under which all the future premiums are waived off in case of uncertain demise of the insured person.
- The plan also provides a guaranteed smart benefit, terminal bonus and simple reversionary bonus that further adds to the savings of the insured.
9. Bajaj Allianz Young Assurance Plan-
This is a traditional endowment plan that also provides the benefits of bonuses. With the help of Bajaj Allianz Young Assurance Plan one can avail the benefits of life coverage along with an opportunity to create corpus for child’s secured future. Some of the key features of the policy are:-
- In order to enhance the benefits of the insured guaranteed additions are also provided under the plan.
- As per the suitability of the insured, one can choose from a variety of premium payment option and variety of policy tenure.
- The maturity benefits can be availed in three options.
10. Future Generali Assured Education Plan-
This is a regular premium paying plan that take care of the financial needs of the child and provide them financial backup for educational needs. The parent is the principal life insured under the policy. Some of the key features of the policy are:-
- Under regular premium paying option the insured can pay premium during the entire tenure of the policy.
- The plan provides three options to receive maturity benefits.
- In case of demise of the insured the death benefit is paid to the beneficiary of the policy i.e. the child.
- The plan also offers rider benefits that can be availed on top of the basic coverage.
- Specified tax benefit is available on the policy under the Income Tax Act.
Constructing a secured financial future for the child requires a lot of effort and thinking. As this is an integral part of parenthood, one should make intelligent financial planning in order to secure the future of the children and entitle them with a quality life.
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