Best Child Plans of 2023
To Secure Your Child's Future
Understanding Child Plan in India
Each child is the apple of a parent’s child. When it comes to planning your child’s future nothing can go wrong. Most parents strive to fulfil their child’s dream be it education or marriage. When you give the best of everything then why not give the best child plan for their financial planning.
Understanding the Concept
Child Savings Plan vs Child Education Plan
A Child Plan is a child-centric insurance plan that acts as a financial tool to secure the future of your child and makes sure that the child does not face any financial insecurities when you are not around.
Child Savings Plan
A Child Savings Plan may be an insurance plan or child endowment plan or money back plan or ULIP plan that helps generate a corpus amount for your child’s future. This plan gives good returns if invested for the long term. The plan can be pre-defined as per your needs for instance for higher education or marriage. Since it is a life insurance product it ensures to take care of the financial needs of the child and acts as a life cover in case of demise of the policyholder.
Child Education Plan
Now a Child Education Plan is a blend of both investment and insurance. It has double benefits of life insurance cum-investment like ULIP or Endowment Plan that help to generate a corpus for the child. On maturity, these plans provide a lump sum amount that can be used at important milestones of life like education fees and marriage expenses.
How It Works?
Understanding the Working of Child Plan
- A child plan provides the double benefit and serves as both an insurance product and also an investment tool that aims to provide financial security at important stages of a child’s life.
- This plan can be purchased by a parent with the child as a nominee. The insurance component in the plan makes sure that the child or the nominee receives a substantial amount of money in case of any unfortunate event with the insured.
- The Child Plan provides a lump sum payment on maturity of the plan that can be used to cover important expenses like higher education or marriage.
- Whereas the investment component on the other side keeps growing as your child grows and saves a substantial amount of funds that are made available to the child at regular intervals at important stages of life including education, marriage etc.
- The plan provides guaranteed returns irrespective of the fact whether the policyholder outlives the term or passes away during the term.
- When the child's future ensures guaranteed financial stability, the parents can be at ease and can focus on other needs for their child’s development.
The best gift a parent can give to their child is a well thought Child Plan that will help them achieve their dreams.
At insurejoy.com you can choose the best-suited Child Plan, today!
How It Works?
What Does a Child Plan Guarantees?
- Life Cover - To secure your family’s financial status
- Waiver of premium benefit - Need not pay premiums in case of the policyholder's death
- Tax benefits - Dual tax benefit according to 80C and 10(10D) of Income Tax Act
- Systematic withdrawals - Withdrawals at pre-defined stages
- Accrued bonus - Bonus for long term investments
- Loan facility - It meets the liquidity requirements
Quick Compare
Best Child Plan in India for Indian Parents
The market has various child savings plan and child education plan available, which makes it difficult to choose the best plan. To lighten your efforts, we at insurejoy.com have made extensive research on child insurance plan based on certain parameters like claim settlement ratio, the sum assured, benefits and market share. We have come up with a few plans that are best in all aspects. You can compare the child plan given below and choose your suitable plan.
Here is a list of the best child plan available in the market in India in 2023.
| Child Plan Name | Entry Age | Maturity Age | Minimum Sum Assured | Claim Settlement Ratio |
|---|---|---|---|---|
| TATA AIA Life Insurance Super Achiever | 25-50 years | 70 years | 10X the annualised premium | 99.06% |
| Max Life Shiksha Plus Super | 21-50 years | 65 years | Rs. 2.5 lakh and above | 99.22% |
| Aegon Life Rising Star Insurance Plan | 18-48 years | 65 years | 10X the annualised premium | 98.01% |
| Bajaj Allianz Young Assure Plan | 18-50 years | 60 years | 10X the annualised premium | 98.1% |
| HDFC SLYoungStar Super Premium | 18 – 65 years | 75 years | 10X the annualised premium | 97.62% |
| ICICI Pru SmartKid Solution | 20-54 years | 64 years | Rs. 45,000 | 97.8% |
| SBI Life Smart Champ Insurance | 21-50 years | 70 years | Rs. 1 lac and above | 93.39% |
| LIC New Children Money Back Plan | 0-12 years | 25 years | Rs. 1 lac and above | 96.69% |
| Bharati AXA Life Child Advantage Plan | 18-55 years | 76 years | Rs. 25000 and above | 97.35% |
| Birla Sun Life Insurance Vision Star Plus | 18-55 years | 76 years | Rs. 1 Lac and above | 97.54% |
Compare Child Plans Before Purchasing
If you want your child to soar high, then you better start investing as early as possible to receive a substantial amount that will grow consistently and give high returns. Before purchasing a plan compare all the essential features that a perfect plan needs. There are various plans available in the market let us compare a few important parameters.
- The maximum entry age
- Income or payout for the child on the demise of the parents
- Maximum limit of payment
- Tenure of the plan
- The interest rates of the returns
Let us make a comparison of the child savings scheme with the most popular scheme announced by the government the Sukanya Samriddhi Yojana Scheme.
| Child Savings Plan | Sukanya Samriddhi Yojana Scheme |
|---|---|
| The plan is for both boys and girls | The plan is exclusively for girls |
| The interest rate for the returns are 11%-14% | The interest rate for the returns are 7.6% |
| The maximum entry age is up to 18 years | The maximum entry age is up to 10 years only |
| The maturity period is for 5 years | The maturity period is for 21 years |
| No limit for the amount to be deposited | The maximum limit to deposit per year is 1.5 lacs |
| Monthly income or lump sum payout for the child if the insured dies | The amount can be received only after maturity |
Know before you buy
Benefits of A Child Plan
A child plan is a two-in-one scheme that secures your child's future. It ensures that your child continues to get a good education and takes care of their needs even in your absence. It also brings a substantial amount from time to time during crucial stages of their life.
At insurejoy.com we are committed to giving you ample knowledge about all insurance and investment products.
The benefits of a Child Plan is discussed below.
Instrument For Child's Education
Even a small investment done consistently over a while with discipline will be the most effective benefit. Even the minimum premium payment will help you gain significant returns for your child's education, as high as 10 times for the premium paid. For example, if you buy a policy with a premium payment of Rs. 12,000 you will receive an amount of Rs. 1,20,000 that can be used to pay college fees, higher education fees or overseas education.
Aid For Child's Medical Expenses
One of the prominent features that you will be benefited is that the Child plans come with a provision of partial withdrawal even if the policy has not reached maturity. This will be helpful in case of any medical emergencies for your child in case of severe illness or accident. A lump sum amount can be withdrawn that will cover the medical expenses adequately. It also acts as an add-on to your existing health insurance.
Major Support For Child In Parent's Absence
The Child Plan has benefits like waiver of premium, death benefit and lump sum payout on maturity. In case of demise of the policyholder, the child is not obligated to pay future premiums and gets the death benefits as a lump sum amount, and another payout is also given at the time of maturity of the plan.
Investment For Creatively Talented Kids
Children who shine in creative fields such as cinema, artists, and singers start earning at a very young age. This amount can be invested in child savings plan to protect the money and substantiate it in the later years. The corpus amount generated over the years will always be security for a child's future.
Two Types of Maturity Benefits To Child
The Child Plan provides two types of maturity benefits.
1. Money back option: In this option after few years of the policy becoming active the child gets assured returns every year. This money can help the child’s education, higher education, and courses abroad
2. Lump-sum payout: In this option, the child receives a lump sum amount at the maturity of the plan.
Considering your financial needs and condition, choose the best option for you.
Collateral For Child's Education Loans
The child plan can be used as collateral in case the child needs higher education loans. Many financial institutions permit the use of child plans as collateral against the loan for overseas education, college education, or to meet other child needs.
Considering all the benefits insurejoy.com is always at your assistance to help you get the best plan. If you have any queries related to the child plan we are just a call or email away! Get the best child plan at insurejoy.com, NOW!
Know before you buy
Features Offered by a Child’s Plan
A Child Plan is loaded with a plethora of features that secure the life and future of your child. Let us see some of the many important features of the plan.
Life Assurance & Insurance Provider
Life insurance means providing only life coverage in case of death risks, but life assurance has dual benefits of both investment as well as life coverage for death. So a child’s plan offers both the benefits depending upon the individual needs. You have the option to select a plan accordingly.
Policy Tenure
The policy tenure varies from different plans. The most common policy term offered is 5-20 years. the policy term depends on the age of the child. The policy tenure can be extended until your child is financially independent and self-dependent.
Min. & Max. Sum Assured
Sum assured is the payout given to the nominee in case of the demise of the policyholder.The sum assured can be more than 5 times or 10 times the annual premium paid. On average the minimum sum assured starts from Rs. 1lakh. Most of the insurance companies don't have a maximum limit for sum assured. But certain plans have an upper limit of Rs. 1 crore.
Partial Withdrawals Allowed
If there is an emergency, partial withdrawals can be done. This is an important feature of the plan that helps to draw the benefits without having to wait for the policy to mature. The amount can also be used for important expenses like education or marriage. The partial withdrawal can be done after the child turns 18.
Death Benefit Paid
In case of policyholders demise during the policy term, the child will be paid death benefits and the future premiums are waived off. The child gets the payment twice, once during the time of death and the second payment at the time of maturity of the plan.
Collateral Benefit
A child’s education loan can be obtained by keeping the child plan as collateral.
Choice of Investment
You have the option to choose the type of funds for your investment like debt, equity, money market, etc. Dynamic Fund Allocation and Systematic Fund Transfer options are also available.
Avail Tax Benefit Feature
The Child Plan has tax benefits that fall under the E-E-E category which is the highest bracket of tax exemption. This is considered as the topmost grade of tax benefits according to the Income Tax Law.
Critical Illness Rider
The add-on cover can be added to maximise the plan's coverage. it comes with three important benefits.
- Accidental death and Disability benefit: This plan pays an extra sum assured in case of an unfortunate event such as disability or death due to an accident.
- Critical Illness Rider: This add-on offers coverage in case of any pre-determined critical illness.
- Premium Waiver: In case of the policyholders demise the premiums are waived off. The nominee or the child need not pay any premium. Sum assured will be paid to the child. The plan remains active until it matures and the child will receive the maturity amount.
The riders benefit come with an extra premium but are worth taking the add-on that provides extensive coverage.
Know before you buy
Types Of Child Insurance Plan
The Child Plan is classified into 4 types based on certain features and parameters.
- Regular Premium Plan
- Single-Premium Plan
- Child ULIPs
- Child Endowment Plan
1. Regular Premium Plan
In a regular premium child plan, the premium payment option is flexible. You can pay the premium monthly, quarterly and annually. This payment cycle is beneficial to parents who do not wish to deposit a lump sum amount.
2. Single-Premium Plan
Parents who wish to pay in a single shot opt for a single-premium plan. You can also avail of this plan with an attractive discount offer. Often parents choose this plan to stay stress-free from paying it every year.
3. Child ULIPs
This type of plan involves high returns that come with high risk. The investment is divided among debt and equity funds. Since it is subject to market changes there are higher chances to bag higher returns for your child’s future.
4. Child Endowment Plan
The endowment plans are less risky. The invested amount is allocated into multiple debt funds. Though the returns might be low in this plan the returns are guaranteed. You can also avail of tax benefits in the endowment plan.
Know before you buy
5 Reasons to Have a Child Insurance Plan?
Investing in a good child insurance plan will help you out in the long run. It not only acts as a life cover but also as an investment opportunity for the benefit of your child.
Protecting Your Child from Unforeseen Events
As a parent, the most important thing that they would want to provide is a secure future even in their absence. This plan will help the child to continue living his life unhindered and take care of his expenses without depending on anyone for financial assistance.
Small Investment Huge Difference
Even a small premium paid for a long term can come in handy during major expenses. The duration of investment is more important than the amount of investment.
Plan in Advance to Provide a Happy Marriage Life
The invested money can be used for huge expenses like higher education and marriage. Even after marriage, they might need some money to kick start their new life. You can not only take care of wedding funds but also set up a good foundation for the new married couple.
Financial Support for Higher Education
When parents have high hopes for their children it is necessary to create strong financial support to make their dream career come true. The child insurance policy can also act as collateral against education loans. When the child plan is pre-defined at the right time the maturity benefits can be used to pay off the education fees.
A Complete Protection Plan
There is a feature of partial withdrawals associated with child plans. These withdrawals come in handy during medical emergencies or other immediate needs related to education, for your child. Choose this feature, so that you can attend to emergent needs without disturbing the usual course of funds required for day to day needs.
| Benefits of Having Child Plan | Without a Child Plan |
|---|---|
| Financial support secures child’s future | Financial loss affects a child’s future |
| Can support for better education | Financial stress might occur for higher education |
| The child's financial needs are met in case of the parent's demise | The child is dependent on others for financial needs |
| Your child’s marriage expenses can be planned in advance | Marriage expenses will cut out a big hole in your pocket |
| A small investment can generate enough corpus for a child’s needs | No investment, no security leaves the child’s future at stake |
Why we should compare?
Benefits Of Comparing Child Plan!
Investment is important but investing in the right plan is more important. With so many plans to choose from it is challenging to choose the best plan. To make your work easier we have discussed certain points to remember before choosing a plan.
With insurejoy.com, your most trusted comparison engine for all kinds of child insurance requirements, your job is made simple and you can easily make these comparisons at ease and reach the best child plan for your dear one.
Here are some of the important parameters for you to consider and before purchasing a child plan.
Claim Settlement Ratio
This refers to the company’s claim settlement records. The higher ratio means higher claim settlements made by the company. Choosing an insurance company with a higher claim settlement ratio will ensure that your beneficiary won’t have trouble getting his rightful claims.
Cover Amount
The cover amount has to be chosen based on the age of the insured, income and other factors. Aways choose best child savings plan or child education plan that offers maximum cover amount to safeguard your child’s future.
Policy Term
The longer the policy term the higher would be the sum assured amount received. Compare various child plans with the longest policy term at the lowest prices.
Terms & Conditions
It is important to read the terms and conditions of every insurer and to study the clause and benefits of the plan. The terms and conditions of every insurer vary from plan to plan.
Riders Benefits
This is an add-on benefit offered by different insurers at a slightly extra cost. Some insurers offer riders benefit under the basic plan features, but some might charge an extra premium for the same. Comparing child plans will help you select the best plan with maximum benefits.
Maturity Benefit
The most important feature that decides the best child plan is those that offer maximum maturity benefits based on your investment. The nominee should receive maximum returns if the insured passes away during the term of the plan or outlives the term. So compare child plans to get the best deal possible.
Premium Amount
The premium amount varies based on certain factors and individual insurer’s priorities. Comparing child plans online is a stress-free way to buy the product with the lowest premium that offers maximum benefits. You can look for different premium amounts offered by insurance providers in a different section on the website.
Make good use of all the information available at insurejoy.com and select the best child plan!
How Much Money Should You Invest
In a Child’s Education Plan?
While investing in a child’s education fund, we have to start investing early. The investment will beat the rising inflation. The private college education fees cost around Rs. 8- Rs. 15 lakh for graduation and Rs.25 lakh for postgraduation. Keeping inflation in mind you need to invest Rs.4.5 lakh each year for higher education.
Similarly for higher education in a foreign university may cost way more than the above calculations. The education cost may be up to $50,000 including the food, stay, book fees, miscellaneous. So in such cases, it is recommended to expand your investment portfolio. An investment for at least 10 years should be made to achieve the targeted amount.
Important Factors That
Affect Premiums On Child Plans!
While choosing the best Child Plan to safeguard your child's future, you must also consider how much money you want to invest in the plan, which can fulfil all the needs.
The premium to be paid is affected based on certain factors that are discussed below.
Before investing ask yourself the following questions before which will directly affect the premium cost.
- Choose at what stages of life your child might require money to fulfil their needs.
- What is the purpose of investment is it for higher education or marriage?
- What is the amount of funds you would require for the needs at those stages?
- Based on the needs and requirements, how much can you save per month, or invest as premiums towards child plans?
- What would be the best suitable plan to meet key requirements such as higher education and marriage?
- What kind of life assurance plan do you want for your child in your absence?
So, based on these questions, you may start investing in the following types of Child Plans, and find out how much premium you need to pay.
Know the Available Addons
Child Plans Comes With Additional Rider Benefit
Including a Rider’s Benefit will Affect The Premium
The child is eligible to receive 1% of the rider sum assured, every month, in the following circumstances:
i) Death of the parent.
ii) Permanent disability of the parent due to an accident.
iii) Parent being diagnosed with any of the critical illnesses specified in the policy.
A little extra premium is charged to get the benefits of this rider.
Know before you buy
Tips to Purchase the Best Plan
We want the best for our customers so here are a few tips to follow while purchasing a plan that will help you get the maximum benefits.
Be an Early Bird while Investing
Early investment is the best way to accumulate enough funds for your future. Your child will receive the maturity benefits when they turn 18, and the payouts are available at key milestones. The investment can start as early as your child is born, or at the maximum when they are 5 years old. An early start will provide a substantial amount of corpus in hand by the time they are ready for higher studies or any courses abroad, which come at a very high cost.
Consider the Rising Inflation
By the time your child is all grown up and ready for higher education or other important steps in life, say around 10-15 years down the line, the costs of living will certainly be much higher than today. Let us assume that your child will be ready for medical studies in 15 years, so the investment should be planned based on the rising inflation in 15 years and the estimated cost of medical studies at that time. So choosing a higher sum assured plan is the best way to equate the inflation amount a decade later.
Read Through the Terms and Conditions of Child Plan
Although reading the terms and conditions may seem time-consuming, but make sure you don’t miss out to follow this step before finalising a plan read the terms and conditions. Most people tend to skip through them because it seems tedious, but you never know the hidden clause and conditions in the policy terms unless your read through them.
Choose Partial Withdrawal Benefit
Most of the plan comes with a feature of partial withdrawals. These withdrawals are useful at the time of medical emergencies or other immediate needs related to education, or other expenses for your child. Choose this feature, to get meet the emergent needs without disturbing your savings required for day to day needs.
Analyse Your Investment Choice
Choosing a Child plan is a futuristic investment. The plan offers you the choice to invest in debt-based or equity-based plans, on the basis of your risk handling abilities. If you are looking for higher gains from your investment, then you may want to invest in the equity-based scheme. You also have certain options like Systematic Transfer Plan and Dynamic Fund Allocation, where the insurance companies take care of the smooth flow of funds in various instruments and you do not have to worry about the risk of funds. Make in-depth research with your insurance provider and then invest.
There are all kinds of child plans available at insurejoy.com. Compare the best child plan and buy the best for your precious child.
What is not covered
Exclusions in the Plan
The insurance companies can reject the claim if the death of the policyholder occurs under the following circumstances;
-
Suicide attempt
The nominee will not receive the money if the policyholder's death is due to suicide or self-harm.
-
Drug Abuse or Alcohol Abuse
If the policyholder dies due to overdosage of drugs and alcohol then the insurance company will directly reject the claim.
-
Dangerous Hobbies
If the policyholder takes part in risky sports such as sky-diving, rock climbing, mountain bike riding, etc, and death occurs due to any dangerous stunts then the claim will be rejected.
-
Illegal Activities
The demise of the policyholder due to any criminal activity or war is not covered under a child’s plan.
How insurejoy.com Helps You
To Buy Best Child Plan!
Your child’s future is of utmost importance and hence do not delay any further in buying a child plan. We are here to help you make the best decision to buy a child plan.
One-Stop Portal to make Sensible Decisions
With extensive research, insurejoy.com has provided all information related to child plans which are easily available and is up to date to help you make the correct decision. It is a one-stop solution finder where all your queries related to the child plan are resolved only at insurejoy.com to make an informed decision.
Hassle-Free Purchase Procedure
insurejoy.com understands your need for a hassle-free, simple and joyful process to buy a child plan. At insurejoy.com, you can buy the most suited child plan only with a few clicks, after furnishing the relevant information.
Helping During The Claim Process
insurejoy.com will assist you in filing for the claims, helping you with the documentation and shall provide all necessary help till your claims are not processed. Although the claims are handled by the individual insurance companies, we will guide you at every step of the process.
Advanced Features
insurejoy.com’s advanced search filters will ensure that you get access to those child plans that have your desired features. This saves your time and provides proper information which is important rather than cluttering it.
Documentation Process
We have made the documentation process as simple as possible by offering you the service of collecting all necessary documents from your doorstep anywhere in the country. We take full responsibility to deliver them to the concerned insurer within stipulated deadlines.
Updating Policy
Our relationship with the customers doesn’t end at selling the child plan, but rather will keep you updated about everything related to your policy, delivery of policy documents, reminders about premium payments, any grievances etc.
Paperwork Assistance
You need not worry about the tedious paperwork involved while buying a child plan. Our experts are there to assist you to fill necessary forms and provide the required documents so that you furnish complete and accurate information and there are no discrepancies.
Documents Required
To Buy Child Plans
- Age Proof of Yours And Your Child
- Latest Passport Size Photographs
- Relationship Proof
- Identity Proof
- Address Proof
- Income Proof
- A Self-check
- And The Duly Filled Plan Proposal Form
For your child's safe, secure and bright future, invest in a meaningful Child Plan through insurejoy.com today!
Frequently Asked Questions
The child plan has dual benfits of insurance cum investment plan that ensures that your child is not only has a secured future but you are also able to provide financial support at important stages of life.
Yes, the maturity benefits received are completely tax-free.
The investment planning should start early as soon as the child is born or at the maximum when the child is 5 years of age.
Yes, you can buy an insurance policy at this age. You can easily purchase a policy online by just visiting insurejoy.com. We will assist you through all the steps involved from selection to the documentation of the plan.
At insurejoy.com we have made the process of filtering the plans as per your requirements. You just have to enter few necessary details and the best plan is just a few clicks away.