Best Child Plans to Invest
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Updated date : 05 June 2020
Best Child Plans
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 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 plans that one should look for. Here are the best child plans to invest in 2020.
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.
11. Edelweiss Tokio Life Edu Save Plan
The plan helps your child dream big without any financial worries. There is an option to go either for a Limited premium payment option or Regular pay option.
- If you choose the marriage funding child plan option, on maturity you get 100% of the insured amount along with the vested bonus amount
- Also, there is a post-graduation plan option, the insurer pays 52% of the insured amount on maturity and another 53% percent is given in the second last year of the policy term
- The child insurance coverage can be further enhanced with the following rider benefits:
- Accidental death benefit rider
- Accidental total permanent disability rider
- Critical illness rider
- Waiver of premium
- Hospital cash benefit
- Life term rider
- Life payor waiver benefit
12. Canara HSBC Smart Junior Child Plan
This is one of the best child plans that you can consider from Canara HSBC if you want your child to pursue the career of his dreams without worrying about the fee. Your child will be insured even when you are not around to pay the premium:
- The age criteria to buy this plan is minimum 18 years and maximum of 50 years for the policy holder
- The maximum maturity age is 70 years
- One of the best features of this child plan is that all the annual payouts are as per the educational milestones of your child
13. Bharti AXA Child Advantage Plan
This is one of the most popular traditional child plans by Bharti AXA. This plan comes with two maturity benefit options i.e. money back maturity benefit and endowment maturity benefit.
Additionally, this child plan offers a waiver of premium benefit without any additional payment
- The child insurance policy term ranges from 11 years to 21 years
- The age criteria to buy this plan is minimum 18 years and maximum of 50 years for the policyholder ( Regular premium payment option)
- The age criteria to buy this plan is minimum 18 years and maximum of 55 years for the policyholder ( Limited premium payment option)
- The maturity age criterion is 71 years and 76 years in the Regular Pay and Limited Pay option respectively
- You can choose to pay the premium monthly, half-yearly, quarterly, and yearly
- After the demise of the policyholder, the insurer pays the premium and your child can continue to enjoy the coverage benefits
14. IDBI Federal Child Insurance Savings Plan
IDBI Federal provides this one of the best child investment plans ensuring annual payouts to help your child meet all the important milestones in his life
- The age criteria to buy this plan is a minimum of 18 years and a maximum of 40 years for the policyholder ( Regular premium payment option). The maturity age is 65 years
- The age criteria to buy this plan is a minimum of 18 years and a maximum of 50 years for the policyholder ( Limited premium payment option). The maturity age is 75 years.
- The child insurance policy term ranges from 11 years to 21 years
- You can choose to pay the premium either monthly or yearly
- In case of the death of the policyholder, the insured get the sum assured amount and the premium is also waived off
15. Tata AIA Life Insurance Good Kid Plan
This is one of the best non-linked child plans by Tata AIA that you can consider to fulfill your child's future education goals with money back benefits. This is an anticipating endowment and participating plan.
- The insured child is offered a waiver of premium benefit in case of the demise of the policyholder/parent
- The plan offers at least 11 times more life cover than the annual premium
- The main features include money back benefits and milestone additions
- The child insurance policy term ranges from 12 years to 25 years
- The age criteria to buy this plan is minimum 25 years and maximum 45 years for policyholder
- The maximum maturity age is 70 years
- You can choose to pay the premium monthly, half-yearly, and yearly
16. Exide Life New Creating Child Plans
The insurance company offers some of the best child plans for parents who understand their child's ambitions and do not want inflation to ruin it for them. Here is what this child plan has to offer:
- You get tax-free returns
- Waiver of premium benefit is provided
- Along with death benefit, the insurer also pays out the family income
- You can select from Regular premium payout as well as Limited premium pay option
17. SUD Life Bright Child Plan
This is a traditional money-back plan that ensures a secured future of your child even after your demise:
- The minimum entry age is 18 years and the maximum is 45 years for the policyholder
- You can select from the two plan options i.e. Wedding Endowment and Career Endowment
- The insurer pays a lumpsum amount when the child turns 18 years, 21 years, and 24 years
- The maturity age for the child is 24 years
18. Pramerica Rakshak Gold Child Plan
If you want to buy a traditional child plan then you can consider this one of the best child plans.
- The policy term options are 12-18 years
- The minimum age criteria for parents is 18 years and the maximum is 47 years ( policy term 18 years)
- The minimum age criteria for parents is 18 years and the maximum is 53 years ( policy term 12 years)
- The premium payment options are Regular and Limited
- The premium frequency options are monthly, semi-annually, and yearly
- You can also get a loan against this plan
19. Kotak Child Assure Plan
This is another one of the best Unit Linked child plans but without any bonuses. However, you can select from 8 fund options to invest your money:
- The plan offers 4 additional rider benefit with the inbuilt waiver of premium rider in case the death of the policyholder
- At the end of the policy term, the fund value is paid as the maturity benefit
- In case of the death of the policyholder, the insurer pays 105% of the total premium or the higher of the sum assured
20. Aditya Birla Sun Life Vision Star Plan
This is a non-linked participating child insurance plan that helps grow your saving to make your child's dream come true:
- The insurer pays Regular bonuses as well as a terminal bonus along with the death benefit
- The minimum entry age is 18 years and the maximum is 55 years for the policyholder
- You can choose premium paying frequency i.e. monthly, half-yearly, quarterly, and yearly
- You can also choose your premium paying term i.e. 5-12 years
21. Reliance Nippon Child Plans
One of the best gifts that you can give to your child is financial security and the promise to pursue his dreams. Be it higher education, marriage, or home you can help your child with his future financial goals
- The minimum sum assured available is Rs. 50,000 with no upper limit
- Also, you can select from three premium payment terms: 5 years, 7 years and 10 years
- On completion of the policy term, the insurer pays 2% additional of the basic sum assured amount
22. Sahara Ankur
You can also buy this child plan to protect your child's future from financial worries. This is ann unit-linked plan that offers the option to invest in various funds:
- You can select the fund you want to invest in as per your risk profile
- The insured child gets the death benefit in case of the death of the policyholder
- You can also enhance the coverage benefits with add-on riders
23. Shriram Life Genius Assured Benefit Plan
This is another best child plan option with guaranteed benefits and comprehensive life cover:
- The minimum entry age to buy this plan is 18 years and the maximum is 45 years for the policyholder
- The maturity age limit is 63 years
- It provides maturity benefits that will help meet your child's higher education goals
- Maturity Benefits on survival include the sum assured amount along with the education support benefit
- Death benefit includes payment of the death sum assured to the child, and he/she can opt to receive the amount in lump sum payout or in installments
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.
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insure
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