Child plans are financial investments that provide a mixed benefit of insurance and investment, which usually helps in planning for your kids’ future financial requirements as they achieve the various stages of their life.
These investment plans allow you to secure and protect the future of your child and support their educational requirements. Under an education plan for the child, a lump sum payment will be offered as a life cover at the end of your policy term.
On top of that, these plans also provide coverage to your child by offering regular payouts at certain milestones of your child’s education. In this article, you’ll know about everything related to these plans, along with a list of some of the most prominent ones available in India.
There are a great variety of benefits and features associated with a child educator plan which can be availed by the policyholder. Along with a highly comprehensive maturity benefit, the plan also provides a life cover to secure the future of your loved ones.
With several unique advantages, these plans are one of the most favorable financial investments that you must have in your portfolio. Apart from helping you make sizable savings for your child, here are the other benefits associated with these plans:
In such unprecedented times, owning a corpus of financial resources to live life on your terms and bearing a fruitful future is an important aspect of life, which should never be overlooked. A child plan allows you to generate a significant amount of money for your child.
Moreover, it also helps you save a significant amount of money to tackle tough times. By committing to make systematic and regular premium payments, you can help your child meet their educational expenses without having to rely on loans or getting involved in a financial burden.
With a child education plan, you can save enough money for college education or foreign studies for your child. The amount of money you can accumulate depends on the terms and the insurance provider that you choose.
With education plans for the child, you can also withdraw your collected amount partially during the tenure of your policy. This advantageous liquidity can be very helpful in the event of any medical emergency that might occur to your child.
These partially withdrawn funds can also come in handy to pay hospitalization and medical expenses, regardless of the severity of the disease. Child plans prevent you from getting into financial burdens due to medical ailments of your child.
If you already have an insurance plan, this feature of child plans can act as add-ons and help you cover the expenses associated with the treatment of your child without any hardship. These plans are ideal for the well-being of your children.
Death never knocks on the door before arriving, and no matter how hard you prepare, such depressing events are destined to happen. However, the consequences of the death of parents can be extremely cruel to innocent children.
It causes serious trauma to the child and leaves an impression forever. A child investment plan waives off all the pending premiums in case any such events take place. This benefit comes in-built and doesn’t require any rider.
These plans also offer the lump sum amount to children as promised in the policy. Therefore, with the help of a good education plan for children, you can ensure that your child can sustain a good lifestyle even in your absence.
This section will discuss the various child plans available in the market, along with their features and details. With this list, you’ll be able to make a good financial decision without stressing much about the process.
However, before investing your funds, you need to assess your requirements and determine your expected premiums using a child education plan calculator tool online. Here are the best child plans available in India:
The Aditya Birla Sun Life Vision Star Plan is a traditional money-back policy that provides periodic payouts during the tenure of your policy. The plan requires a minimum entry age for parents of 18 years, which can go as high as 55 years.
Moreover, the plan’s maturity age is 75 years, and you can gain two different payout options i.e., survival benefits and periodic benefits. The plan provides regular payouts every two years, after completing the lock-in period of five years.
The Smart Junior Plan by Canara HSBC Oriental Bank of Commerce is a non-linked savings and protection plan, designed specifically to fulfill the educational requirements of your child, even when you can no longer be with them.
It offers guaranteed payouts in the last five years of the policy tenure, which helps you align your investments with your child’s life progress. There are also several annual bonuses available on the maturity of your plan
The Aegon Life Rising Star Insurance Plan allows you to help your child achieve their future goals with financial provisions throughout a specified period. It allows you to invest in four different funds namely Debt, Stable, Secure, and Accelerator funds.
If you want to invest in this plan, you need to be at least eighteen years, and at most 48 years old. The plan comes with a maturity age of 65 years and allows you to choose from monthly, yearly, and half-yearly premium payment modes. .
The growing cost of education is indicating an alarming situation, where you need a significant amount of capital to fulfill your child’s needs. By investing in education plans for children, you can accumulate a good amount of money over a specified time. Before choosing any plan, make sure you conduct your research using an online child education plan calculator.