by As a parent, every person wants a safe and healthy future with quality education for their children. But in the current scenario where VUCA aspects mean Volatility, Uncertainty, Complexity, and ambiguity have their weight on society more than any time, it is hard for parents to provide a secure future to their children.
Even with both parents working, it is hard to manage a secure life with quality education and an environment for their children that becomes hard to maintain day by day. This is where a child insurance plan comes into play as a saviour to not even lighten the burden of expenses from parents but also help to maintain and grow the quality environment that parents want to give their children.
A child insurance plan is a combination of investment and insurance that helps with the secure environment to grow and future aims for your children. The parents invest on the regular intervals to create a large financial Corpus for their children’s future goals like higher education, marriage, etc. And with this, the insurance aspect of the plan helps to provide safety of the funds that parents accumulated from any inappropriate mishappenings.
Table of Contents
Best child saving plans available in India
There are mainly two objectives of a child insurance plan are Covering financial needs for future aims of your children and providing financial protection under any inappropriate mishappenings. Let’s have a look at some of the best child plans available in India that not only fulfil child saving plan objectives but also provide vast benefits with a promising environment where your children can grow and surely meet their future goals.
1. INVEST4G by Canara HSBC Oriental Bank Of Commerce
INVEST4G by Canara HSBC OBC is a type of savings plan that comprises different saving options as per the requirement of the individual. One such option it comprises is the child-saving option. It is a non-linked participating child insurance plan.
It is the best child plan with the main focus of this plan is protection endowment over investment because of providing surety to meet children’s future goals. That’s why it is not linked to market returns as they contain risk margins that may affect the financial need of the expected goals.
This plan comes with a triple protection feature which comprises in case of death the life insurance cover is provided through lump-sum payments, the remaining premium is waived off and guaranteed payouts are provided for children education. There are other features also that are provided by this plan like flexible premium payments, Customizations of saving horizon, key education milestones, Smooth fund building for education, etc.
The plan also has several benefits like tax benefits under Section 80C and Section 10(10d), Maturity benefits, death benefits, etc.
2. Aegon Life Rising Star Child Insurance Plan
Aegon Life Rising Star Child Insurance Plan is the unit-linked insurance plan that aims for stable children’s future in any condition. This Aegon Life rising star child insurance plan is a simple ULIP plan that is a non-traditional insurance plan that comes without bonus facilities.
The plan provides four different funds for investment and covers the life insurance of parents. The whole funds are sanctioned at the time of maturity. In case of any mishappenings within the plan tenure, the assured sum is paid to the children as promised and the remaining premium payments are waived off by the insurer.
This child insurance plan also comprises a unique feature of the Invest protect option. In this option, the insured person facilitates to systematically move out of the current investments 3 years before the maturity period. In this way, the returns are not affected by any market volatility and fluctuations and hence do not affect the maturity benefits
3. Aditya Birla Sun Life Vision Star Child Plan
Aditya Birla Sun Life Vision Star Child Plan is a traditional participating insurance plan where the children’s protection and future goals are at utmost priority. Participating means that the insured also gets the benefits from insurance company profits as dividends at regular time intervals. The plan focuses on the money-back option instead of providing a lump sum amount at the end of the child insurance plan tenure.
Within the money-back option, it comprises two parts that are options A and option B. In option A, there are a total of four payouts where two are of 20% of sum assured and the other two are of 30% of sum assured is paid every two years, after the completion of five years of premium paying term. In option B, a total of five payouts of 15%, 15%, 20%,20%, and 30% are paid every five years by the insurer after the completion of the premium paying term.
There are also various benefits provided with this plan that are maturity benefits, death benefits, income tax benefits, and additional bonuses like terminal bonuses, reversionary bonuses, etc.
4. Bajaj Allianz Young Assurance Child Plan
Bajaj Allianz Young Assurance Child Plan is a traditional insurance plan with a focus on savings along with children protection and wealth creation for their future goals. It is of participating type means the insured gets benefits from company profits as dividends regularly. It further comprises two terms that are Limited and regular premium payments.
Bajaj Allianz is known as the first-class insurance agency of India that provides a variety of insurance plans fit for every individual needs along with fast customizations. The Bajaj Allianz plans are also famously known for their large on-plan benefits. This plan also inherits unique functionalities like Additional permanent total disability benefits, additional rider benefits, etc.
The other benefits within this child insurance plan are maturity benefits with 3 add-on option bonuses, earth benefits with 105% returns on all premium payments along with total fund value, and tax benefits under section 80C and section 10(10D).
The Takeaway
Child insurance plan are vital for any family for the efficient growth of children and fulfilling their future goals. As we discussed in the current scenario of increasing inflation and uncertainty it is hard for parents to provide a quality environment with proper financials to their children. Even with both working parents, managing finances is quite a burden for the parents. That’s the reason why child insurance plans are more popular in India.
In this guide, the best child plan is mentioned with details to help parents come out of the financial burdens of children’s education and future goals by efficiently fulfilling them.
