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Child Education Plan India
As an NRI (Non-Resident Indian), securing a stable and promising future for our children holds paramount importance. One effective way to achieve this goal is through a well-designed child plan that blends investment and insurance components. This comprehensive approach not only safeguards our child's future but also provides us with peace of mind even when we are far away from our homeland. These plans provide flexible payouts at important milestones, which can support a child's education at different stages.
Investing in your child's future:A wise decision & a loving choice
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Nothing Is More Important Than Securing Your Child's Future
Invest ₹10k/month your child will get ₹1 Cr# Tax-Free* on Maturity
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What is a Child Education Plan?
A child education plan is a type of insurance plan that helps you save money for your child's education. Such plans offer dual benefits of investment and insurance. The best Child Education Plans available for NRIs provide a substantial lump sum payment upon maturity, which can be utilized to cover various educational costs for students living abroad.
Such plans are a great way to ensure your child has the financial resources to pursue their educational goals.
Best Child Education Plan†† in India for an NRI
| Plans | Entry Age | Maximum Maturity Age | Minimum Investment Amount (annually) | Minimum Sum assured |
| Aditya Birla Capital Guarantee Solution | 0-58 years | 85 years | Rs. 38,400 | Minimum Sum Assured (Single Pay)- Rs.100,000 Minimum Sum Assured (5 Pay)- Rs.20,000 Minimum Sum Assured (6-12 Pay)- Rs.30,000 |
| BAJAJ Allianz Capital Guarantee Solution | 18-55 years | 65 years | Rs. 20,000 | The Minimum Sum Assured is Rs. 30,000 |
| Bajaj Allianz Smart Wealth Goal- Child Wealth | 18-60 years | 85 years | Rs 48,000/- | 10 times Annualized Premium |
| Edelweiss Tokio Wealth Secure Plus- Child | 18-40 years | 100 years | Rs 24,000/- | 7 x Annualized Premium |
| HDFC Life Capital Guarantee Solution | 18-50 years | 85 years | Rs. 12,000 | 1.25 times the Single Premium |
| ICICI IPru Smart Kid Plan | 18-65 years | 64 years | Rs 25,000/- | Minimum Sum Assured (Single Pay) -1.25 x Single Premium Minimum Sum Assured (Regular Pay)- 7 x Annual Premium |
| Kotak Life Capital Guarantee Solution | 18-50 years | 99 years | Rs. 21,000 | 10 times Annualized Premium |
| Max Life Capital Guarantee Solution | 18-50 years | 85 years | Rs. 37,200 | The Minimum Sum Assured is Rs. 1,20,000 |
| Max Life Online Savings Plan- Child Plan | 18-54 years | 85 years | Rs 12,000/- | The minimum Sum Assured is Rs. 1,20,000 |
| TATA AIA Fortune Pro- WOP | 18-59 years | 75 years | Rs 12,000/- | - |
| TATA AIA Capital Guarantee Solution |
18-50 years | 75 years | Rs. 51,000/- | Minimum Sum Assured (Single Pay) -1.25 x Single Premium Minimum Sum Assured (Regular Pay)- Higher of (10*AP OR (0.5*Policy Term*AP) |
See More Plans
Disclaimer: †† Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
People Also Read: How to Get 50k Pension Per Month as NRIs?
Types of Child Plans for NRIs
Most reputable insurance providers worldwide recognize the significance of child insurance policies and include them as a vital component within their insurance portfolio. These child plans are thoughtfully designed to cater to diverse individual priorities and needs, offering a range of options with tailor-made features.
Parents and guardians can find comfort in knowing that the world's highly demanding insurance companies prioritize the well-being of children and offer specialized policies to safeguard their future. These child insurance plans may differ based on various parameters, allowing families to select the most suitable coverage that aligns with their unique circumstances and financial goals.
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Based on Premium Payment Options
Policybazaar Child Plan Type Description Single-Premium Child Plan - Policyholders pay a lump sum amount as a single premium for the entire policy term.
- Some providers offer discounts or reduced premiums.
Regular Premium Child Plan - It offers you flexibility on payment of premium.
- Flexible premium payment options: monthly, quarterly, half-yearly, or yearly.
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Based on the Type of Maturity Amount Payout
Type of Child Plan Features Child ULIP - Offers Equity market participation and disciplined investments
- Sum assured paid to nominated beneficiary upon policyholder’s demise
- Future premiums waived off
- Maturity amount paid at policy maturity
Traditional Child . Plan - Security and savings plan
- Provides Lump sum amount upon policy maturity
- Acts as a financial tool for child's objectives
- Premiums invested in debt instruments
- Returns based on maturity bonus
Money-back Child Plans - Variant of endowment plans with guaranteed returns
- Payout benefits after 5-10 years
- Useful for running costs like education fees
- Maturity benefits paid at policy term end
- Option to choose lump-sum or regular income payout
Invest More Get More
Invest ₹10K/Month YOU GET ₹1 Crores* For Your Child
Invest ₹8K/Month YOU GET ₹80 Lakhs* For Your Child
Invest ₹5K/Month YOU GET ₹50 Lakhs* For Your Child
Standard T&C Apply *
Why Should NRIs Buy a Child Education Plan?
With rising inflation, the education sector has seen a massive rise in fees. Whether in India or elsewhere, education costs have deprived many passionate kids of quality learning. Therefore, the need for a child education plan cannot be understated for parents to plan for their children’s education.
Here are some essential factors why parents must invest in a child education plan:
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Secure finances immediately: Child Education Plan in India provides tax-free lump sum payouts upon the death of a parent, ensuring immediate financial protection and preventing educational disruptions.
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Combat education inflation: With an annual inflation rate of 5-7% and rising costs of studying abroad (16% increase in last decade), investing in a good plan is crucial to avoid depleting savings. By 2040, an engineering degree is projected to cost around Rs. 45 Lakhs. Education plans can help counter increasing tuition fees, private school expenses, and education abroad.
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Continued investment even after parent's death: The best child education plans offer a lump sum payout upon parent/guardian’s death, including compounded returns. Premium waiver benefit helps continue the investment plan for the child in the absence of parents or guardian paying for the policy.
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Capital Guarantee: A child Plan gives capital guarantee. This means that the amount invested in the plan is 100% guaranteed and will be returned at maturity, regardless of market fluctuations.
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Inbuilt Life Cover: A child plan comes with an inbuilt life cover, providing financial protection to the child in the event of the unfortunate death of the insured parent or guardian. The life cover amount, in this case, is ₹33.7 Lac, which is paid out to the child as a benefit.
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Zero Commission: There are no commissions charged when purchasing the policy. This means that the entire invested amount goes towards building the financial corpus for the child's future, enhancing the overall returns.
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High investment returns: To safeguard your child's education, explore suitable investment options promptly like equity, debt, or gold. Choosing investment funds for higher returns must be based on your risk appetite and current financial situation. Market-linked equity funds typically gain the highest returns to create a significant corpus.
People Also Read: Pension Plans for NRI
How to Buy a Child Education Plan through Policybazaar?
Let us learn the working of the best child education plan for an NRI from the steps mentioned:
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Go to the Policybazaar website (www.policybazaar.com).
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Navigate to the Child Education Plans Section. You can use the search bar or browse through the relevant categories.
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Click on the child education plan and provide the necessary details about the child (name, age, etc.), coverage amount you desire, your age and other relevant information.
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Policybazaar allows you to compare different child education plans from various insurance providers. Review the features, benefits, premiums, and coverage offered by each plan to find one that suits your needs.
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Click on the individual plans to read the policy details, terms, and conditions thoroughly. Understand the inclusions, exclusions, and any additional benefits offered.
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Once you have decided on a child education plan, click on the "Buy Now" or "Apply Now" button. This will take you to the application process.
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Complete the online application form with all the necessary details. Ensure accuracy in the information provided.
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Policybazaar may require you to upload relevant documents like ID proof, address proof, and age proof. Make sure you have these documents ready in digital format.
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Pay the premium amount using your preferred mode of payment. Policybazaar offers multiple payment options like credit/debit card, net banking, or mobile wallets.
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Double-check all the information you provided in the application. Once you are satisfied, confirm your purchase.
After successful payment and processing, you will receive the child education plan policy document via email or postal mail, depending on the insurer's process.
List of Documents Required
| Documents | Required Proof |
| Proof of Age (any one) |
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| Proof of Identity (any one) |
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| Proof of Income | Proof of income showing the income of the insurance buyer |
| Proof of Address |
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| Proposal Form | Duly filled proposal form |
Tips to Choose Best Child Education Plan
When purchasing a child education plan in India as an NRI, remember the following suggestions to select the most suitable plan per your requirements:
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Financial Stability of the Insurance Provider: Seek out financially stable companies that boast a favorable claim settlement ratio. This ensures their ability to fulfill commitments upon plan maturity or in case of unforeseen events.
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Plan Flexibility: Look for a child education plan that offers flexibility regarding premium payment options, policy term, and coverage.
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Investment Options: Assess the investment options available within the child education plan based on their historical performance. Choose a plan that aligns with your risk appetite and investment preferences.
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Charges Involved: Understand the charges associated with the child education plan, including premium allocation charges, administration fees, mortality charges, and fund management charges.
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Maturity Benefits: Pay attention to the maturity benefits provided by the plan, ensuring they sufficiently meet your child's educational needs.
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Insurance Coverage: Adequate insurance coverage will safeguard your child's educational goals in unfortunate circumstances.
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Tax Benefits: Look for child education plans that offer tax benefits under Section 80C and Section 10(10D) of the Income Tax Act in India.
With Policybazaar, you can compare multiple child plans, select the one that aligns with your financial objectives, and receive expert advice from certified advisors, all with zero commission, no hidden charges, and full transparency.
People Also Read: Pros and Cons of NPS for NRI
How Much Should an NRI Invest In a Child Plan in India?
The amount to be spent on good education is subjective. While some universities/colleges charge a few thousand rupees, some private institutions charge lakhs for a short duration diploma course.
Let us understand this with an example while taking India’s average education cost for a graduation course.
Example:
Consider the following figures for calculation:
Current age of child: 1 year
Current fee of education (2023): Rs 15 lakhs for a regular graduation course
College fee inflation: 6% per year
Required college fee (by 2040): Rs 40.4 lakhs for the same course
| Current Cost of Education (Graduation) in India | Cost of Education in India in 2040 | Investment Amount |
| Rs 15 Lakh | Rs 40.4 Lakh | 6,800 per month (until your child comes of age) |
You can also use Policybazaar’s Child plan calculator to know your investment amount based on different figures. It is an easy way to do complex calculations within minutes.
Let Us Help You
At Policybazaar, we take pride in helping parents like you to ensure a bright future for your children. Every child is unique and so are their insurance needs. Who knows, your children might turn out to be future Einstein, Tendulkar, Ambani or Elon musk. Ensure you financially equip your child to tap those opportunities coming their way.
There are many variants of child plans as per your budget and needs. But it is always advisable to compare insurance quotes before making the final decision.
Unique Triple Benefit
- Future premiums paid by insurer on parent's death
- Monthly income to fund child's education on parent's death
- Lumpsum payout to family on parent's death
Returns
- Return as of Apr 2024
- 12%-15%
- 8.2%
- 7.1%
Availability
- Availability
- Girl Child or Boy Child
- Girl child only
- Girl Child or Boy Child
- Max Entry Age
- Upto 18 years
- Upto 10 years
- No Age Limit
Flexibility
- Invested Amount can be Withdrawn after
- 5 years
- 21 years
- 15 years
- Conditions for Premature closure
- Anytime after 5years
- Extreme Compassionate Grounds
- Serious Ailments or for education
- Penalty on Premature Closure
- No Penalty after 5 years
- Returns reduced to Post Office Savings rate
- 1% reduction in interest rate
- Max deposit amount in an year
- No Limit
- 1.5 Lacs
- 1.5 Lacs
Documentation
- Documentation Required for Withdrawal
- Low
- High
- Low
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FAQ's
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Are child plans tax-free?
Policyholders can reduce their taxable income through deductions allowed under Sections 80C, 10(10D), and 80DD of the Income Tax Act, 1961. If the annual premium is greater than 2.5 Lacs, the maturity amount will be tax exempted under 10(10D). It's worth mentioning that all returns, including death benefits and maturity benefits, obtained from a child plan are entirely exempt from taxes. -
What is the complete child insurance plan claim process?
Here's the simplified claim process for most insurance providers:-
Notify your insurance provider immediately about the incident through email, phone, or visiting a branch office.
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Fill out the claim form and provide essential details like the cause and date of the incident, nominee's name, etc.
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Submit supporting documents and reports required by the insurer.
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An appointed surveyor will verify the case and documents.
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If approved, the insurance company will transfer the claim benefit within 30 days.
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What are the exclusions of the child insurance plan?
Child insurance plans do not include the following:-
Drug or alcohol abuse
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Self-harm or Suicide
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Adventurous or Risky Sports
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Criminal Activities
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†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
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