Types of Child Insurance Plans: All the Important Aspects!
No doubts that parents’ happiness resides in the success and happiness of their children but successful parenting can never be a walk in the park. Oscar Wilde once said “The best way to make children good is to make them happy” and one of the most important aspects of happiness is securing your child’s future needs at the right age and time.
Read more
Investing in your child's future:Investment will continue with or without you
Benefits of Investing In Child Plan
Waiver of Premium Benefit
Future Premiums are paid by the insurer upon death of policyholder
Flexible Payout Options
Your premiums help your child achieve their dreams through lump sum or regular payouts
Wealth Boosters
Get rewarded with Wealth Booster and Loyalty Bonus for staying invested with us
Zero Commission
We charge no commission when you buy from us. Also buy online & get extra
Tax Benefits^
You get tax benefits under Section 80(C) and no tax on returns under Section 10 (10D)
Investment Flexibility
It offers the flexibility to invest at regular intervals or as a one-time contribution
We are rated++
9.7 Crore
Registered Consumer
51
Insurance Partners
4.9 Crore
Policies Sold
Nothing Is More Important Than Securing Your Child's Future
Invest ₹10k/month your child will get ₹1 Cr# Tax-Free*
Types of Child Insurance Plans: All the Important Aspects!
A Child Insurance plan is one such way that ensures your child’s future safety and ensures that they do not struggle financially even when you are no more around to look after them.
What is Child Insurance Plan?
A child insurance plan is an investment plus insurance plan offered by many companies for the safety of your child’s future dreams and goals. It offers life cover and provides flexible playouts during all the crucial steps in your child’s life. A child insurance plan is one of the best ways to save a good amount of money with regular investments for your child’s future.
Types of Child Insurance Plans
Broadly there are 3 types of Child insurance plans available in India
Child ULIP
Child ULIP comes with 3 pronged advantages broadly. They are as follows:
High insurance coverage
Disciplined investments
Participation inequity market
It means that
Sum assured is provided to the nominee child on the death of the parent or legal guardian
Future premium is waived off after the demise of the parent
Maturity value is paid during the time of maturity.
Child ULIP ensures that your child’s future dreams are fulfilled with or without you
Unit Linked Insurance Plans
The payouts at the time of maturity of ULIPs are determined by the market. This is a great plan for long tenures, say, more than 10-15 years. Companies provide options between different investment funds, allowing you to receive more money than you invested. There are some plans under ULIPs where profits are directly transferred from equity to debt instruments
Traditional Endowment Plans
These are simple plans that provide stable returns in the form of bonuses over the sum assured. Generally, under Traditional Endowment Plans, bonuses are paid from the 2nd year onwards.
Single-Premium Child Plan
The policyholder pays a lump sum amount in the form of a single premium for the entire policy term and stays worry-free from remembering the due dates of premium payment. You’ll not have to come across any hassles of arranging finances for the premium payment. Some insurance providers additionally offer appealing discounts or reduce the premium on child plans.
Regular Premium Child Plan
Unlike a single premium child education plan, a regular premium child policy offers you flexibility on payment of premium. You can pay the premium monthly, quarterly, half-yearly, or yearly.
Investment
Secure
Secure your child’s future with or without you
Start Investing
₹10,000/Month
& Get
₹1 Crore*
*Standard T & C Apply
Key features of Child Insurance Plan
A Child insurance plan comes with many useful features to ensure a rewarding return and protection for your child. Here are some key features of the best Child Insurance plans in India:
Capital guarantee
Waiver of premium
Partial payments
Sum assured
Tax benefits
Immediate financial protection
Loan benefits
Additional riders
Certain riders are available, which give you more than just a simple life insurance policy. These riders are available in three sub-categories:
Accidental Death and Disability Benefit
The Accidental Death and Disability Rider Benefit pay the extra sum assured in the event of your unfortunate mishap causing death or disability
Premium Waiver Benefit
This rider may be already added to the best child education plan, so check your policy document in this regard
Critical Illness Rider Benefit
Critical Illness rider benefit offers coverage for a pre-determined set of critical diseases
Invest MoreGet More
Invest ₹10K/MonthYOU GET₹1 Crores*For Your ChildView Plans
Invest ₹8K/MonthYOU GET₹80 Lakhs*For Your ChildView Plans
Invest ₹5K/MonthYOU GET₹50 Lakhs*For Your ChildView Plans
Standard T&C Apply *
Benefits of Child Insurance Plan
Flexible payment of funds
Secured loans are available
You can choose from either ULIP or Endowment plan
Flexible premium payment options
Funds available on the demise of the insured or after the maturity of the policy
Compare Child Plans≈
Here is a list of companies providing some of the best Child Plans in India. You can compare the policies and decide what will be best for your you and your child.
Plans
Entry Age
Maximum Maturity Age
Minimum Annual Premium
Minimum Sum assured
AEGON Life Rising Star Insurance Plan
18-48 years
65 years
Rs 20,000/-
10 times of the regular Annualized premium
Aviva Young Scholar Secure
21-50 years
71 years
Rs 50,000/-
10 times the annual premium
Bajaj Allianz Young Assure
18-50 years
60 years
N/A
10 times the Annualized premium
Bharti AXA Life Child Advantage Plan
18-55 years
76 years
Depends on Minimum Sum Assured
Rs 25,000/-
Birla Sun Life Insurance Vision Star Plus
18-55years
75 years
N/A
Rs 1 Lakh
Edelweiss Tokio Life EduSave
18-45 years
60 years
Rs 6,968/-
Rs 2.25 Lakh
Exide Life Mera Aashirvad
21-50 years
65 years
N/A
Rs 3.5 Lakh
Future Generali Assured Education Plan
21-50 years
67 years
Rs 20,000/-
N/A
HDFC SL YoungStar Super Premium
18-65 years
75 years
Rs 15,000/-
10 times the annualized premium
ICICI Pru SmartKid Solution
20-54 years
64 years
Rs 48,000/-
Rs 45,000/-
IndiaFirst Happy India Plan
18-50 years
60 years
Rs 12,000/-
Higher of 10 or 7 times the annual premium or 0.5/0.25*term*annual premium
Higher of 10 or 7 times the annual premium or 0.5/0.25*term*annual premium
Max Life Shiksha Plus Super
21-50 years
65 years
Rs 25000/-
Rs 2.5 Lakh
PNB MetLife College Plan
20-45 years
69 years
Rs 18,000/-
Rs 2,12,040
Pramerica Life Future Idols Gold Plan
18-50 years
65 years
Rs 10, 800/-
Rs 1.5 Lakh
Premium Paid
Reliance Life Child Plan
20-60 years
70 years
Rs 25,000/-
Equal to Policy
Sahara Ankur Child Plan
0-13 years
40 years
Single-Premium- Rs. 30,000/-
5 times of Single
SBI Life- Smart Champ Insurance
21-50 years
70 years
Rs 6,000/-
Rs 1 Lakh
SBI Life- Smart Scholar
18-57 years
65 Years
Rs 24,000/-
20/7 times the annual premium (regular pay) 1.25 times single premium (single pay)
Shriram Life New Shri Vidya
18-50 years
70 years
N/A
Rs 1 Lakh
Smart Future Income Plan
18-55 years
80 years
N/A
100 times the chosen monthly income
SUD Life Aashirvad
18-50 years
70 years
N/A
Rs 4 lakh
TATA AIA Life Insurance Super Achiever
25-50 years
70 years
Rs 24,000/-
10 times of the yearly premium
Wealthsurance Future Star Insurance Plan
18-54 years
64 years
Rs 25,000/-
Higher of 10/7 times the annual premium or 0.5/0.25*term*annual premium
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
Wrapping it up
A child insurance plan is one of the best ways to secure your child’s financial future and of great help to you as well. Your child’s future safety is very important because, at the end of the day, it is all about your child and their happiness.
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. 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. 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.
Investment
Secure
Secure your Child’s Career Goal
Start Investing ₹10,000/Month
& Get ₹1 Crore*
*Standard T & C Apply
Insurers Offering Child Plans
Tata AIA
Aditya Birla Sun Life
Bajaj Allianz
Axis Max Life
HDFC Life
ICICI Prudential
Bharti AXA Life
Edelweiss Life
Kotak Life
Future Generali
PNB MetLife
SBI Life
Aviva
Bandhan Life
Canara HSBC
IDBI Federal
IndiaFirst
Pramerica Life
Reliance Life
Sahara Life
Shriram Life
Star Union
View more insurers
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or
insurance product offered by an insurer.