In a world full of uncertainties, securing the future of children by providing them with the best education is a priority for parents. ULIP Plans for Child Education are schemes offering dual benefits of insurance plans and capital-building investments. This will help you to create a financial net for the most important stage i.e. education for your child.Read more
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A ULIP Child Education Plan provides a policyholder with life coverage and capital investment opportunities in market-linked securities. The corpus generated through these investments can be utilized to fund the educational expenses of your child.
To make your child financially free for pursuing studies in a field of their choice you need to understand the best child education ULIP plans. Let us learn about them in the next section.
Let us understand the best ULIP plans offering attractive maturity benefits to the policyholder in the following list:
|ULIP Plan||Entry Age||Maximum Maturity Age||Policy Term||Minimum Annual Premium||Minimum Sum Assured|
|Max Life Shiksha Plus Super||21-50 years of age.
Child’s age: 0-18 years
|5 Pay Variant: 60 years of age
Regular Pay: 65 years of age
|5 Pay Variant: 10 years
Regular Pay: 15-25 years
|5 Pay Variant: Rs. 50,000
Regular Pay: Rs. 25,000 (Annual mode) OR Rs. 48,000 (Non-annual mode)
|5 Pay: Rs. 5 lakhs
Regular Pay: Rs. 2.5 lakhs (annual mode) OR Rs. 4.8 lakhs (Non-annual mode)
|ICICI Prudential Smartkid Premier Plan||Single Life A/c: 20-60 years of age
Joint Life A/c: 20-55 years of age
Child’s age: 0-15 years
|Single Life: 70 years of age
Joint Life: 65 years of age
Child’s age: 18-25 years
|5 Pay:5 years
7 Pay: 7 years
10 Pay: 10 years
Regular Pay: Full policy term.
|5 Pay: Rs. 48,000
7 Pay: Rs. 36,000
10 Pay: Rs. 18,000
Regular Pay: Rs. 18,000.
|Lower among: 10* (Annual premium) OR 0.5* (Policy Term)* (Annual Premium)|
|SBI Life Smart Scholar Plan||Parent’s age: 18-57 years
Child’s age: 0-17 years
|Parent’s age: 65 years
Child’s age: 25 years
|8-25 years||Rs. 4000 (monthly) - Rs. 75,000 (single pay)||Limited Premium: 10* Annual Premium
Single Premium: 1.25* Single premium
|SBI Life Smart Champ Insurance Plan||Parent’s age: 21-50 years
Child’s age: 0-13 years
|Parent’s age: 42-70 years
Child’s age: 21 years
|8-21 years||Rs. 500 (monthly) – Rs. (66,000)||Rs. 1 lakh (*1,000)|
|HDFC SL YoungStar Super Premium||Life Option age: 18-65 years
Life & Health Option age: 18-55 years
|Life Option age: 75 years
Life & Health Option age: 65 years
|10-20 years||Rs. 15,000- No Limit||10* Annual Premium (age <45 years) OR
7* Annual Premium (age >= 45 years)
|Future Generali Assured Child Education Plan||Parent’s age: 21-50 years
Child’s age: 0- 10 years
|35-67 years of age||7 years- 17 years||Rs. 2,000 (monthly)- Rs. 20,000 (annually)||10* (Annual Premium)|
|Aviva Young Scholar Advantage||Parent’s age: 21-50 years
Child’s age: 0-12 years
|N/A||21- Child’s entry age||Options b/w: Rs. 33,000- Rs. 10 lakhs||10* (Annual Premium)|
|Max Life Future Genius Education Plan||21-45 years of age||66 years of age||13-21 years||8 Pay Variant: Rs. 40,000
Limited Pay: Rs. 20,000
|8 Pay Variant: Rs. 3.27 lakhs
Limited Pay: Rs. 2.12 lakhs
|Kotak HeadStart Child Assure||18-60 years of age||28-70 years of age||15-25 years||Regular: Rs. 20,000
Limited Pay: Rs. 50,000
|10* (Annual Premium) OR 0.5 * PT* (Annualised Premium)|
|Edelweiss Tokio Life EduSave Plan||18-45 years of age||60 years of age||10-30 years||Rs. 6,968||Rs. 2.25 lakhs- No Limit|
A ULIP plan for investment in child education works in the following ways:
Choose a scheme from the above-listed top Child ULIP Plans in 2023.
You select the mutual fund from the options offered by the insurance company.
The insurance company will use a part of the premium for insurance coverage and investment in market-linked instruments.
Make periodic payments in the Child Education ULIP Plan for the selected policy term.
The policyholder/beneficiary gets lump sum or deferred payout options as a maturity benefit after the end of the policy term.
The amount received as a maturity benefit can be used to finance your child’s education.
The following list will help you to understand all the features offered by the Child Education ULIP Plans:
The best ULIP Child Education Plans also allow the customers to avail of the facility of partial withdrawal after the completion of a 5-year lock-in period. One can avail of this facility to pay for other important requirements like fees for coaching classes and marriage-related expenses.
The Child Education ULIP plans to offer a range of rider benefits to provide additional life cover to the child. The investors can avail of the following major rider benefits that can while joining the ULIP:
Along with life insurance offered by the ULIP plan, this rider gives additional financial support to the nominee in case of the demise of the insured person in an accident. The best ULIP plans for child education offer rider benefits equal to the base sum assured.
The ULIP investment child plans also give the choice of ATPD Rider that pays the insured person a lump sum amount in case of total or partial disability caused by a fatal accident. This helps in making your dependents stress-free in meeting any urgent expenses.
The diagnosis of a critical illness in the insured person can put a burden on the finances of their family. The CI rider gives the insured person a lump sum payment of the assured amount to help cover the treatment expenses.
To meet the important financial timelines of your child’s goals, you can decide the duration of your Policy Term (PT) and Premium Payment Term (PPT). Likewise, multiple options for Premium Payment Frequency are available with the best ULIP Plans for Child Education. The policyholder can pay the premiums on a monthly, quarterly, semi-annually, annual, or lump sum basis.
The companies offering top ULIP child education plans allow them to freely switch between mutual fund portfolios a few times in a policy year. This helps the investors to gain higher returns by shifting from a high-to-low-risk fund profile smoothly.
ULIP investment plans for child education offer attractive benefits to the policyholders. The elaborated financial net, extensive maturity benefits, and peace of mind are its significant features.
Listed below are some of the pros associated with a Child Unit Linked Insurance Plan; let us have a look:
A market-linked ULIP plan for child education builds enough corpus to fulfil all the education-related expenses of your child. The benefits you receive from the best ULIP plan vary depending on the terms and conditions stated by the company at the time of purchase.
The inflation on educational expenditures grows at 10-12% yearly. The top equity-linked Child Education ULIP plans offer you higher returns in long term than the inflation growth by the time your child need those funds.
The Child ULIP Plans are crucial investments also because they offer you a liquid amount with a partial withdrawal facility during medical emergencies.
To raise loans for important needs the best investment plans for child education can be leveraged as collateral.
Child ULIP Plans for education offer the tax benefits mentioned in the table below:
|Sections u/ Income Tax Act (1961)||Tax Exemptions|
|Section 80C||Tax exemptions on premiums paid in ULIP Plan up to Rs. 1.5 lakhs annually|
|Section 80E||Tax exemption for 8 years on interest paid for education loan|
|Section 10(10D)||Tax exemption on the maturity amount (except in case of death benefits) if the net premiums paid annually from all ULIP plans is up to Rs. 2.5 Lakhs (limit of Rs. 2.5 lakhs was introduced in Union Budget 2021)|
Now let us learn why a parent must buy at least one Child Education ULIP Plan through the list below:
Provides full financial security to your child for pursuing their educational plans
Gives the best returns for covering educational expenses in future when your child needs the funds
Helps you cover the tuition fees if your child wants to go for higher studies
Gives financial support to the child even after the parent’s demise
Offers higher returns countering the fluctuating inflation prices
Market-linked securities though come with financial risks, they offer higher returns in long term than savings plans
For a concerned parent choosing a plan from the range of best ULIP schemes for child education can be a tough task.
The following list will help in easing the decision-making process for you:
Select a ULIP plan with careful selection of the Policy Term, Premium Payment Frequency, and other policy features. They should suit your financial timelines as per the specific requirements of your family.
Choose the rider benefits, and mutual fund options catering to your needs and risk appetite.
It is important to seek a high Claim Settlement Ratio (CSR) of the insurance provider.
The fund coverage amount and the fund investment tenure must be decided based on the healthcare needs, career goals, wedding, and other life plans of your child.
The child investment ULIP plans offer attractive features and a range of benefits. They not only secure the future of your child in your absence but also builds wealth for your child. These plans are a good investment option to secure the immediate and future financial requirements of your child.
However, reaching a decision should be based on considering all the possible needs, circumstances, and responsibilities of your family.
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