Planning for your kids to have a good education is important. There are many different ways you can plan for it, and investing is one of the best child insurance plans. Education investment plans can help you invest money for your child’s future education, including tax advantages as well. These can be used for their higher studies like engineering, medicine, etc. So how do you pick the best investment plan? Let’s look at a few top options.
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Aditya Birla Sun Life Vision Star Plan
The Vision Star child investment plan is a traditional money-back plan that offers periodic payments during the policy term. Parents should be 18 or older and can invest until age 55 to be eligible for this plan. You can choose to receive annuity payments every two years or once a year. At maturity, you’ll get an additional bonus, called the terminal bonus.
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Aegon Life Rising Star Insurance Plan
This is an investment plan that lets you save money for your child’s future goals while also giving you the option to invest in any of the four following funds: a debt fund, a secure fund, a stable fund, and an accelerator fund. The minimum age to invest in this plan is 18 years and the maximum is 48 years. For a relatively low monthly premium, this insurance plan helps you save for your child’s educational purposes.
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Bajaj Allianz Young Assurance
If you want to take an investment plan for your child, there are options available from Bajaj Allianz, and Young Assure is one of them. The Young Assure is a traditional insurance plan that comes with an accidental permanent total disability benefit. It has a minimum entry age of 18 years and a maximum entry age of 50 years, as well as a minimum maturity age of 28 years and a maximum maturity age of 60 years.
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Bharti AXA Life Child Advantage Plan
This is a child insurance plan investment plan that offers two options to receive the maturity benefits, either money back or endowment benefits. It also provides an inbuilt waiver of premium benefits. The insurer will pay the premium in case of your death to ensure that your child can sustain proper living standards in the event of your unfortunate demise. The minimum age of parents to be eligible for this policy is 18 years and the maximum age is 50 years in the Regular Pay option, while in Limited Pay it is 55 years. The maturity age of the policyholder is 71 in Regular and 76 in the Limited pay option.
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Exide Life Wealth Maxima Plan
This is an insurance plan that is designed to protect your child’s future in case you die prematurely. If you outlive the policy, your child receives the maturity value. If you die before the policy expires, your child receives 105% of the premiums paid. Moreover, as it is essentially a Unit Linked Insurance Plan, it also allows you to invest in market-linked financial assets like debts and equities to enjoy greater returns over your investments.
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Canara HSBC Oriental Bank of Commerce – Invest 4G Plan
The Invest 4G Unit Linked Insurance Plan from Canara HSBC Oriental Bank of Commerce is a good choice if you want to have more control over your investment choices. It allows you to invest in different assets so that you make the most money possible. Multiple cover options provide you with more flexibility for different life stages. Loyalty add-ons can boost your savings corpus. There is a systematic withdrawal option that can also help generate extra income. You have more flexibility to access your funds as needed with the milestone withdrawal feature, which lets you take out money for specific events. Investing your funds in this option gives you flexibility and increases liquidity.
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ICICI Pru Smartkid Regular Premium
The insurance company ICICI PruSmart offers a plan called “ICICI PruSmart Kids” in which they will pay a lump sum of money and keep paying monthly premiums to help with your child’s education in the event of your unforeseen death. The Kid’s Plan is a pure protection plan, where guarantee payment is provided by the issuer for death, accident, or disability. This policy offers two-rider benefits: income and disability. With partial withdrawals, the investment fund values will grow by 120% to 170% of the premium paid in the first 15 years.
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Kotak Headstart Child Assure Plan
Kotak offers this unit-linked investment plan in both limited and regular premium payment options. It also allows partial withdrawals every five years and four free switches among the funds every year. To qualify for this plan, the parents must be over 18, and under 60. The maturity age can be as early as 28 days and up to a max of 70 years. The premium payment frequency can be either half-yearly or yearly.
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Max Life Shiksha Plus Super
This is a Unit linked life insurance policy, which is a savings plan that allows for contributions to be made over a long-term period and offers the added benefit of life insurance coverage. This is a child plan investment that offers market-related returns and can be used to provide your child with a secure future. It’s also designed to protect against the risk of financial loss. You can choose from 5 different funds, and you can also invest in a Systematic Transfer Plan.
Final Words
As parents, we are always concerned about our children’s future. We make sure that they have everything they need to be successful and we are always trying our best as a parent in guiding them to become successful adults. If your children are still young and you want to give them the best education for their future, you always have the option to choose the most suitable child insurance plan from the list stated above.
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