Best Child Investment Plans to Invest in 2020

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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.

Best Child Investment Plans

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 child future plan that you can consider investing in 2020.

Plan Name

Entry Age

Maturity Age

Minimum Annualized Premium

 

Aditya Birla Sun Life Vision Star Plan

18/55 years

75 years

Premium depends on the chosen sum assured amount

Aegon Life Rising Star 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

Aviva Young Scholar Secure Plan

Parent (Life Assured)- 21/50 years

Child (Nominee)- 0/12 years

71 years

Plan Option

Silver

Gold

Diamond

Platinum

 

Annualized Premium

Rs.33,000

Rs.50,000

Rs.1,00,000

Rs.2,00,000

Bajaj Allianz Young Assurance

18/50 years

60 years

N/A

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

Canara HSBC Child Plan

18/50 years

70 years

Premium depends on the chosen sum assured amount

Edelweiss Tokio Life Edu Save Plan

18/45 years

60 years

Rs. 6,968

Exide Life Wealth Maxima 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

HDFC SL Youngstar Super Premium   

Life option- 18/65 years

Life & Health Option-18/55 years

Life option-75 years

Life & Health Option- 65 years

N/A

IDBI Federal Child Insurance Savings Plan

Parent- 18/ 40, 50 years

 Child- Greater than one month and less than 18 years of age

65years, 75 years

Rs.10,000

ICICI Pru Smart Kid’s Regular Premium   

20/54 years

64 years

Rs.45,000 p.a

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.

LIC – Child Career Plan  

0/12 years

27 years

N/A

LIC – New Children’s Money Back Plan

0/12 years

25 years

Rs.24,000 p.a

Max Life Shiksha Plus Super

21/50 years

 

60 years/ 65 years

5 pay- Rs.50,000 p.a.

Regular Pay- Rs.25,000 p.a

PNB Metlife Smart Child Plan

Parent- 18/55 years

Child- 90 days/17 years

75 years

Rs.18,000 p.a

Pramerica Rakshak Gold Child Plan

18/ 53,50, 47 years

65 years

Rs.12,170 p.a

Sahara Ankur Child Plan

0/13 years

40 years

Single pay- Rs.30,000

Regular pay- Rs.8,000 p.a.

SBI Life – Smart Scholar

Parent- 18/57 years

Child-0/17 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.

SBI Life – Smart Champ Insurance Plan  

Parent- 21/50 years

Child-0/13 years

70 years

Rs.6,000 p.a.

Star Life Bright Child Plan

Parent- 19/45 years

Child-0/8,7 years

69 years

N/A

Shriram New Shri Vidya Plan

18/50 years

70 years

Rs.8,000 p.a.

TATA AIA Super Achiever Plan

Parent- 25/50 years

Child-0/17 years

70 years

Rs.24,000 p.a.s

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer


1. Aditya Birla Sun Life Vision Star Plan

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.

2. Aegon Life Rising Star Insurance Plan  

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.

3. Aviva Young Scholar Secure Plan  

Aviva offers one of the best child plans. Talking about the Young Scholar Secure Plan this plan has been designed to help you secure your child's future financially.  You can choose from four plan variants i.e. silver, gold, diamond, and platinum. The policy also pays a lump sum amount as a child's college admission fund once he/she reaches 18 years of age.  Also, there is a provision to fund your child's higher education as the insurer pays a lump sum amount as a part of the Higher Education Reserve as the child turns 21.

4. Bajaj Allianz Young Assurance

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.

5. Bharti AXA Life Child Advantage Plan   

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.

6. Canara HSBC Child Plan   

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.

7. Edelweiss Tokio Life Edu Save Plan

Edelweiss Tokio offers this best child plan to ensure a bright future for your child without any financial hurdles. The plan offers several riders options such as accidental death benefit rider, accidental total, and permanent disability rider, critical illness rider, waiver of premium, hospital cash benefit, life term rider, and life payor waiver benefit.

8. Exide Life Wealth Maxima Plan

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.

9. HDFC SL Youngstar Super Premium

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.

10. IDBI Federal Child Insurance Savings Plan

This is one of the best 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 for parents is 18 years and the maximum is 40 years in Regular Pay option and 50 years in Limited Pay option. The maturity age is 65 years in the Regular Pay option and 75 years in the Limited Pay option. The policy term options can range from 10 to 25 years. The premium payment frequency options are monthly, and yearly.

11. ICICI Pru Smart Kid’s Regular Premium

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.

12. Kotak Head start Child Assure Plan

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.

13. LIC – Child Career Plan

The Child Career plan by LIC is specially designed to meet the increasing educational and other needs of growing children. It provides the risk cover on the life of a child not only during the policy term but also during the extended term. In this best child plan, the money comes in installments but the major amount will come only after the child has attained 18 years of age. The premiums can be paid regularly at yearly, half-yearly, quarterly, or through salary deductions over the term of the policy. Also, the premiums can be paid either for 6 years or up to 5 years befo4re the policy term.

14. LIC – New Children’s Money Back Plan

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.

15. Max Life Shiksha Plus Super

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.

16. PNB Metlife Smart Child Plan

This is another unit-linked child investment plan that is also available as a traditional plan with guaranteed benefits. There is an inbuilt premium waiver benefit in case of death of the policyholder. Moreover, on the death of the insured the equity funds are transferred to the Balance II Fund to protect from market volatility. The plan also permits 4 free annual switches. The minimum entry age for parents is 18 years and the maximum is 55 years. And the minimum entry age for a beneficiary can be 90 days and up to a maximum of 17 years. The policy term options are 10, 15, and 20 years. The premium payment frequency options are monthly, quarterly, half-yearly, and yearly.

17. Pramerica Rakshak Gold Child Plan

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.

18. Sahara Ankur Child Plan

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.

19. SBI Life – Smart Scholar

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.

20. SBI Life – Smart Champ Insurance Plan

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 installments after the child becomes 18 years of age.

21. Star Life Bright Child Plan

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.

22. Shriram New Shri Vidya 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.

23. TATA AIA Super Achiever Plan

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.

24. Sahara Ankur Child Plan

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.

Best Investment Options for Child

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.

  • Systematic Investment Planning (SIP)
  • Sukanya Samriddhi Yojana
  • Debt Fund
  • Public Provident Fund (PPF)

1. Systematic Investment Planning (SIP)

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.

2. Sukanya Samriddhi Yojana

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.

3. Debt Fund

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.

4. Public Provident Fund (PPF)

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

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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