Planning for the child’s secured future is not an easy task. Most of the people try to create a strong financial cushion for their child but find their funds insufficient at the time of need. While planning to create a strong financial back up for the child, it is significant to make the right investment choices at the right time.
While there are a plethora of best investment plans for the child available in the market, it is always advised to choose the investment option depending on the need and suitability.*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
There is no better gift you can give your child, than the promise of a secure future. After becoming a parent, one should start planning for the child’s future by investing in comprehensive health and education plans. Before you plan to buy a health insurance or child education plan, it is important that you consider aspects such as premium rate, inflation rate, the cost of education and medical.
Here are some of the best saving child investment plans that you can consider investing in 2020.
|Plan Name||Entry Age||Maturity Age||Minimum Annualized Premium||Sum Assured|
|Aditya Birla Sun Life Vision Star Child Plan||18/55 years||75 years||Premium depends on the chosen sum assured amount||Min- Rs.1,00,000 Max- No upper limit|
|Aegon Life Rising Star Child Insurance Plan||Parent (Life Assured)- 18/48 years
Child(Nominee)- 1day, 5 years, 10 years/ 15 years
|65 years||Annual mode- Rs.20,000 p.a
Other modes- Rs.30,000 p.a
|Min-< 45 years- Higher of 10x A.P or 0.5 x Policy Term x A.P >or equal to 45 years- Higher of 7x A.P or 0.5 x Policy
Term x A.P
Max- < 45 years- 18x A.P >or equal to 45 years- 10x A.P
|Bajaj Allianz Young Assurance Child Plan||18/50 years||60 years||N/A||10 times the annualized premium|
|Bharti AXA Life Child Advantage Plan||Regular Pay- 18/50 years
Limited Pay- 18/55 years
|Regular Pay- 71 years Limited
Pay- 76 years
|N/A||Min-Rs.25,000 Max- No upper limit|
|Canara HSBC Child Plan||18/50 years||70 years||Premium depends on the chosen sum assured amount||Min- Annual mode- Rs.3,00,000 Monthly mode-Rs.5,00,000 Max- No upper limit|
|Exide Life Wealth Maxima Child Plan||Maxima Invest- 0/65 years
Maxima Family-18/55 years
Maxima Child- 18/50 years
|Maxima Invest- 75 years
Maxima Family-70 years
Maxima Child- 65 years
|Rs. 36,000||For age till 44 years- 10x A.P For age above 44 years- 7 or 10 times A.P|
|HDFC SL Youngstar Super Premium Child Plan||Life option- 18/65 years Life
Health Option-18/55 years
|Life option-75 years Life
Health Option- 65 years
|N/A||Min-< 45 years- 10x A.P >or equal to 45 years- Higher of 7x A.P
|IDBI Federal Dream Builder Child Plan||21/50 years||31/72 years||N/A||Min-Rs.2,15,000 Max- No upper limit|
|ICICI Pru Smart Kid’s Regular Premium||20/54 years||64 years||Rs.45,000 p.a||Min-Higher of 10x A.P or 0.5x policy term x A.P
Max-No upper limit
|Kotak Head start Child Assure Plan||18/60 years||70 years||Regular pay- Rs.20,000 p.e
Limited pay- 5 years PT- Rs.50,000 p.a 10
years PT- Rs.20,000 p.a.
|Min-< 45 years- Higher of 10x A.P or 0.5 x Policy Term x A.P >or equal to 45 years- Higher of 7x A.P or 0.5 x Policy Term x A.P
|LIC – New Children’s Money Back Plan||0/12 years||25 years||Rs.24,000 p.a||Min-Rs.1,00,00 Max-no limit|
|Max Life Shiksha Plus Super||21/50 years||60/65 years||5 pay- Rs.50,000 p.a.
Regular Pay- Rs.25,000 p.a
|Min- 5 Pay- 10x A.P
Regular Pay-10x A.P
Max- No upper limit
|PNB Metlife Smart Child Plan||Parent- 18/55 years
Child- 90 days/17 years
|75 years||Rs.18,000 p.a||Min- Limited Pay- 10x A.P
Single Pay-1.25xsingle pay
Max- No upper limit
|Pramerica Rakshak Gold Child Plan||18/ 53,50, 47 years||65 years||Rs.12,170 p.a||Min- Rs. 75,000 Max- Rs. 5,00,00,000|
|Sahara Ankur Child Plan||0/13 years||40 years||Single pay- Rs.30,000
Regular pay- Rs.8,000 p.a.
|For age 10 years and less- Rs.15,00,000 For age above 10 years- Rs.24,75,000|
|SBI Life – Smart Scholar||Parent- 18/57 years
|65 years||PPT greater than or equal to 8 years- Rs. 24,000 p.a PPT 5 years- 7 years- Rs.50,000 p.a.||Limited Premium- 10xA.P Single Premium- 1.25xsingle premium|
|SBI Life – Smart Champ Insurance Plan||Parent- 21/50 years
|70 years||Rs.6,000 p.a.||Min-Rs.1,00,000 (x 1000/-)
|Star Life Bright Child Plan||Parent- 19/45 years Child-0/8,7 years||69 years||N/A||Min-Rs.5,00,000 Max-Rs.5,00,00,000|
|Shriram New Shri Vidya Child Plan||18/50 years||70 years||Rs.8,000 p.a.||Min- 1,00,000
Max- No upper limit
|TATA AIA Super Achiever Plan||Parent- 25/50 years Child-0/17 years||70 years||Rs.24,000 p.a.s||10x A.P|
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer
One of the child investment plans by Birla Sun Life is Vision Star, it is a traditional money-back plan that offers periodic payments during the policy term. The minimum entry age for parents is 18 years and the maximum is 55 years. The maturity age is 75 years. The insured can avail two options of periodic payments or survival benefits i.e. payouts after the completion of 5 years, which is paid every 2 years, and payouts after 5-years that is paid every year. At the time of maturity, the policyholder also gets a terminal bonus and a reversionary bonus.
This is unit liken child insurance plan that helps you make financial provisions for your child's future goals. It also gives you an option to invest in any of the four following funds i.e. Debt Fund, Secure Fund, Stable Fund, and Accelerator Fund. The minimum entry age for parents is 18 years and the maximum is 48 years. The maturity age is 65 years. The premium payment frequency options are monthly, half-yearly, and yearly.
There are different child investment plans by Bajaj Allianz and Young Assure is one of them. It is a traditional child insurance policy with an inbuilt Accidental Permanent total disability benefit. The minimum entry age for this plan is 18 years and the maximum entry age is 50 years. And the minimum maturity age is 28 years and the maximum maturity age is 60 years. Moreover, the sum assured amount is 10 times the yearly premium. The policy term options are 10, 15, and 20 years. The premium payment frequency options are monthly, quarterly, half-yearly, and yearly.
This is a traditional child investment plan that offers two options to avail the maturity benefits i.e. money back benefit and endowment benefit. The plan comes with an inbuilt waiver of premium benefit option. The insurer continues to pay the premium in case of your demise to ensure that your child can avail of the policy benefits. The minimum entry age for parents is 18 years and the maximum is 50 years in Regular Pay option and 55 years in Limited Pay option. The maturity age is 71 years in the Regular Pay option and 76 years in the Limited Pay option. The policy term options can range from 11 to 21 years. The premium payment frequency options are monthly, quarterly, half-yearly, and yearly.
This is an individual linked life insurance and savings plan by Canara HSBC that offers a long-term investment option to fulfill your child's dreams without any financial worries. It is a comprehensive insurance policy that provides a sum assured amount on death and in case of death and disability of the policyholder the premium is funded. It also gives you an option to invest in 6 funds i.e. Debt plus fund, Growth Plus fund, Equity II Fund, Liquid Fund, Balanced Plus fund, and India multi-cap equity fund. This is a good plan to buy if you want to secure your child's future financially in case of our untimely demise.
This is a Unit Linked Insurance plan that is designed to ensure the welfare of your child's future in case of the death of the policyholder. The fund value is paid upon maturity. And if the policyholder dies during the policy term the insurer immediately pays the higher sum assured including the top-up sum insured amount or 105% of the premium including top-up premiums. Moreover, all the premiums are waived-off and are paid the insurance provider and the fund value is paid upon maturity.
This policy is a united linked insurance product by HDFC with life insurance coverage. It is considered a valuable financial protection plan for your child and offers two flexible benefit payment preferences – Save Benefit or Save-n-Gain Benefit. The SL Youngstar Super Premium Plan gives you four funds to suit your needs: Income Fund; Balanced Fund; Blue Chip Fund and Opportunities Fund.
Child plans that offer yearly payouts to help meet your child's important milestones in life. In case of your unfortunate death, the plan offers the sum assured plus the premiums are waived off. In case of survival, the insurer pays 20% Maturity sum assured every year at the end of 12 and 13 years plus the end of 14th year, 60% sum assured is paid. In addition to this terminal bonus, an interim bonus, and the reversionary bonus is paid.
The minimum entry age of the policy is 21 years – 50 years and the maturity age ranges from 31 years-72 years.
ICICI PruSmart Kid’s is a participating endowment regular premium plan with guaranteed educational benefits. In this plan, the company pays a lump sum payment of Sum assured and future premiums in the unfortunate event of the death of a parent. There’s protection against accident and disability, and a facility to provide money for the key educational expense of the child. This policy offers two additional rider benefits: income benefit rider and accident and disability benefit rider. There is an option for partial withdrawals and 120% to 170% of the annual premium is allocated to your fund value at the end of the 15th policy year.
Kotak provides this unit-linked child investment plan in both limited and regular premium payment options. Moreover, the child plan permits partial withdrawals in every 5 years and 4 free annual switches among the funds. The minimum entry age for parents is 18 years and the maximum is 60 years. And the minimum maturity age is 28 days and up to a maximum of 70 years. The policy term options range from 10 to 20 years. The premium payment frequency options can be half-yearly, and yearly.
The New Children’s Money Back Plan from LIC is a participating non-linked money back plan. It is designed to meet the educational, marriage, and other needs of children through survival benefits. This policy offers death benefits along with various survival and maturity benefits. The policyholder will have the option to take the survival benefit at any time on or after its due date but during the tenure of the policy. Also, LIC’s Premium Waiver Benefit Rider is available as an optional rider on the life of proposer aged between ages 18 to 55 years by payment of additional premium.
This is a Unit linked child investment plan that helps in boosting wealth with market-related returns. It serves the dual purpose of a child's secured future as well as life insurance protection. The insured can choose from 5 fund options and invest as a Systematic Transfer Plan and Dynamic Fund Allocation. The plan also permits two free partial withdrawals in every 5 years and 12 free annual switches among the funds.
This is a non-linked, non-participating savings life insurance policy, which offers guaranteed returns. The plan also provides insurance coverage against any type of eventuality. The plan ensures that the child achieve the major objectives of life with higher level of certainty. The plan comes with 4 different coverage options to choose from.
This is a traditional plan wherein you can select the limited or the regular premium payment option. Moreover, you can buy a loan against this policy. The minimum entry age for parents is 18 years and the maximum is 53 years for a policy term of 12 years. And for a policy term of 18 years, the minimum entry age for parents is 18 years and the maximum is 47 years. The policy term ranges between 12 and 18 years. The premium payment frequency options are monthly, half-yearly, and yearly.
You can help your child pursue his/her dreams by investing in this plan. You can select from various fund options to make the best profits and as per your risk profile.
You can select from any of the above-mentioned child investment plans and look for more plans from the above insurers as per your child's future goals, financial requirements, and suitable premium options.
SBI Life – Smart Scholar is a non-participating Unit Linked Insurance Plan (ULIP). This plan offers dual protection for your family, in case you are not around. Payment of the base sum is assured and inbuilt premium pay or waiver benefit to ensure the continuance of your policy. This plan also offers twin benefits of market-linked rent and insurance benefits. The minimum entry age is 0 years and the maximum age is 17 years. Tax deduction under Section 80C of the Income Tax Act is available for the Smart Scholar plan. Also, in the event of unfortunate death, a lump sum benefit equal to higher of the sum assured or 105% of all premiums paid till the date of death will be payable.
The Smart Champ Insurance Plan by SBI is an individual non-linked, participating life insurance plan which is designed to protect your child’s future educational needs. It has assured benefits which are payable during the tenure of the policy and provides insurance cover to the proposer. He would be assured for life and the policyholder, for death and accidental total permanent disability throughout the policy term. Also, smart benefits are payable in four equal instalments after the child becomes 18 years of age.
This is a traditional money-back plan to gift your child a stable financial future even after the demise of the parents. You can pay the premium for a limited period and select from two coverage options i.e. Wedding Endowment and Career Endowment. 20 % of SA is paid when the child turns 21 and 50% of SA is paid when the child turns 18 in the respective options. And the maturity amount is paid when the child turns 24 years along with the benefit booster of 30% of SA. The minimum entry age for parents is 18 years and the maximum is 45 years to buy this child investment plan.
This is a traditional child investment and insurance plan. It can be enhanced further with rider benefits like accident cover, critical illness cover, etc. The minimum entry age for parents is 18 years and the maximum is 50 years. And the maximum maturity age is 70 years. The policy term options range from 10 to 25 years. The premium payment frequency options are monthly, quarterly, half-yearly, and yearly.
In this unit-linked child plan, you can select to manage your investments on your own, or go for-profit strategy, and Enhanced Automatic Asset Allocation Plus strategy. The minimum entry age for parents is 25 years and the maximum is 50 years with a maturity age limit of up to 70 years. And the minimum entry age for a beneficiary can be 30 days and up to a maximum of 17 years. The policy term range from 10 to 20 years. The premium payment frequency options are monthly, quarterly, half-yearly, and yearly. The plan also permits four free partial withdrawals in every 5 years and 12 free annual switches among the funds.*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
The following are the best investment options that as a parent you can consider investing in to secure the financial future of your child.
Here are some of the best child future plan that you can consider investing in 2020.
For goals like accumulating funds for a child’s education, marriage, etc. investment in equity mutual funds through SIP can be considered as an ideal investment choice for the long-term. An individual can invest for a tenure of 10-15 years in SIP, with a minimum investment amount of Rs.500.
For instance, if you invest Rs.6000 per month for a tenure of 18 years ( time period is taken as from the time the child is born till he/she goes for higher education) in equity mutual fund, then, assuming the 12% annual interest rate, you can gain a capital appreciation of Rs.45.9 lakh. Assuming the inflation rate of 6% the worth of this accumulated fund will be Rs.23.4 lakhs.
With the benefit of the power of compounding, the returns offered by equity mutual funds are more effective to beat the 5-6% inflation rate every year. Thus, it makes the SIP investment one of the best investment plans for child in the long-term.
As a government-backed investment option, this scheme is specifically designed to secure the financial future of the girl child. Sukanya Samriddhi Yojana account can be open by the parent of the girl child below the age of 10 years. SSY has a tenure of 21 years or until the girl child is married after the age of 18 years.
As one of the lucrative options of investment, the scheme offers an interest rate of 7.6% per annum ( applicable from 01-04-2020). The parent of the girl child can open the account with a minimum investment of Rs.250/- and can invest up to a maximum Rs.1.5 lakh in a financial year. Deposition can be made into the account till the completion of 15 years of the period from the date of opening the account. Moreover, the scheme also offers the benefit of tax exemption on the investment made towards the account up to the maximum limit of Rs.1.5 lakh U/S 80C of the IT Act. This scheme is an ideal option of investment for the girl child to meet their future goals.
As compared to equity mutual funds, debt funds include low risk. The funds are invested in different bonds or deposits and gain interest by lending the funds. As a low-risk investment option debt funds offer a regular return on investment. Debt funds can be used to fulfill the recurring expenses of the child, like school fees, any medical emergency, etc. The investments made in debt fund are for the short-term and offers an annual return of 6-7%. Moreover, debt funds are flexible and allow withdrawal whenever required.
Public Provident Fund comes with a tenure of 15 years. Thus, individuals can consider this as a long-term investment option for the child. If you open a PPF account when your child is small then in 15 years the PPF scheme will mature and the accumulated fund can be used to fulfill the requirements of the child, like financing the higher education, marriage, etc.
The applicable interest rate on the contribution made towards the PPF account is 7.9%. Moreover, along with the guaranteed investment return, the PPF account also offers the benefit of tax exemption U/S 80C of the Income Tax Act.
Besides these options of best investment plans for child, there are different types of child insurance plans available in the market, which are specifically designed to ensure financial security to the children and to cater to their requirements. Let’s take a look at the best child plans for investment 2020.
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer