Best Eight Child Plan for Education and Marriage in India – Check Plan Type, Sum Assured and Key Features

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As you embrace parenthood and enjoy the bliss of having a child in your life, you also prepare yourself to shoulder some responsibilities of the little one who has just stepped into your world. Buying an all-inclusive child plan is the right decision when it comes to investing in your children’s future.   

Good financial planning and a sound backup for your kid’s future is essential. It secures your child against the unforeseen and gives them the hope of a bright career. In this regard, a child plan suits your needs well, allowing parents to support their kids monetarily for their higher education and marriage. In India, education and wedding are regarded as two such responsibilities that incur huge expenses. With a child plan, as parents, you can ensure that these financial responsibilities are taken care of even if you are not around.

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How does a Child Plan help in Taking Care of your Child’s Future Finances?

The child insurance plans are designed to cover the child for future events like higher education. These plans secure a child in the event of the death of a parent or parents. These child plans also help if parents become disabled or suffer a loss of income. A child plan ensures that despite your absence, your kid gets the financial means and support till they are independent.

In addition to the above, child insurance plans serve as a regular saving means for parents through market-linked returns. Over a period of time, these returns accumulate to become a bigger corpus to fund your child’s higher education or wedding in the future.

Hence, with the child investment plans, you can ensure the combination of protection and assured return to take care of your child’s needs.

Best 8 Child Plans for Education and Marriage in India 2023

Here is a table below mentioning some of the best child plans available in India:

Plan Name

Plan Type

Sum Assured

Bajaj Allianz Young Assure

Traditional endowment plan

10 times the premium paid (annually)

Aditya Birla Sun Life Insurance Vision Star Plan

Traditional child plan

Minimum – 1 lakh, Maximum- no limit

LIC New Children’s Money Back Plan

Money-back plan

Minimum-1 lakh Maximum – no limit

Aviva Young Scholar Secure Plan

Traditional child plan

10 times the annual premium

ICICI Prudential Smart Kid Solution

ULIP

10 times of single premium

HDFC Life Young Star Udaan

Money-back plan/Traditional endowment

Maximum- no limit

Max Life Shiksha Plus Super

ULIP

INR 2.5 lakhs

Reliance Nippon Life Child Plan

Money-back plan

Equal to policy

1. Bajaj Allianz Young Assure:

This child insurance plan from Bajaj Allianz is an endowment policy that allows the child to avail of death benefits in case of the demise of a parent. It also offers the child assured returns with bonuses at maturity.

Key Features of Bajaj Allianz Young Assure

  • The plan allows the insured to avail assured guaranteed benefits at maturity when the policy term ends
  • If a parent dies, the insurer waives the remaining premiums while the policy continues and the child receives guaranteed benefits
  • The policy pays several options of premium payment and policy tenure
  • The policy also offers the add-on of Accidental Permanent Total Disability
  • Insured can receive maturity benefits as the plan completes 3, 5, and 7 years, which support parents in the child’s education and other needs

2. Aditya Birla Sun Life Insurance Vision Star Plan:

The Vision Star from Aditya Birla is a traditional money-back policy with dual benefits of life coverage to kids in case of unfortunate incidents like parents’ death.

Key Features of Aditya Birla Sun Life Insurance Vision Star Plan

  • The plan allows the insured to avail assured returns as payouts once or twice yearly
  • It allows parents the flexibility to choose the sum assured
  • It also offers bonuses to parents on a regular basis
  • Under this plan, the maturity benefits are available with accumulated as well as terminal bonuses (if any)
  • The death benefits received are equivalent to the sum insured in addition to assured payouts and bonuses
  • The plan also allows the insured to avail of loans

3. LIC New Children’s Money Back Plan:

LIC’s money-back new children plan supports the parents to save regularly. The plan also pays out survival benefits to fund various milestones in your child’s life, including higher education or wedding. This is one of the best education and marriage investment plans.

Key Features of LIC New Children’s Money Back Plan

  • This plan can be availed for a child as young as 0 to 12 years
  • The policy pays survival benefits as the child reaches 18, 20, and 22 years
  • Survival benefits paid every year is equal to 20% of the sum insured
  • The remaining 40% of the sum insured is provided to the child as a lump sum amount at maturity together with bonuses

4. Aviva Young Scholar Advantage Plan:

Aviva Young Scholar is a traditional savings plan that covers your children throughout their education. Like other traditional policies, here, the parents of the child are the owner of the policy or the insured person, while the child reaps the benefits of the plan.

Key Features of Aviva Young Scholar Advantage Plan

  • The plan allows assured yearly payouts after the term of the premium payment is over and continues until the child reaches 17 years of age
  • The plan offers a lump sum amount to fund your child’s college admission fees as they turn 18
  • The child receives another payout of a lump sum amount as soon as they reach the age of 21 to cover the expenses of higher education or post-graduation
  • Further, the plan pays the total assured death benefit without any deductions in the event of the demise of the parent

5. ICICI Prudential Smart Kid Solution:

It is a lucrative ULIP child insurance plan that offers many options to earn returns via market-linked investments. The benefits that are enjoyed by the child come with a Smart Advantage. Further, even after the demise of the parents, the plan accrues returns.

Key Features of ICICI Prudential Smart Kid Solution

  • One of the best features of the plan is the partial withdrawal facility that can be requested anytime to plan for your child’s higher education after five years of the policy term
  • The smart kid solution allows the parents to choose and invest money in 10 varied funds
  • The term or tenure of the policy can be chosen by the insured
  • It also offers tax benefits under India’s IT Act
  • At maturity, the child receives a lump-sum amount together with accrued returns
  • Death benefit received under the plan is 150% of the total premiums paid by the insured

6. HDFC Life Young Star Udaan:

The Young Star Udaan insurance policy from HDFC is another money-back scheme suitable for your child. This is one of the best child education plans that covers the educational as well as wedding expenses of your kids. In the unfortunate event of the death of parents, the child receives death benefits with assured add-ons.

Key Features of HDFC Life Young Star Udaan

  • This policy presents three options of maturity benefits to fulfill your child’s needs such as
    • Aspiration
    • Academia, and
    • Career
  • In case of the demise of the parents, the child and their remaining family members receive two choices
    • Classic Option – Here the plan will terminate once the death benefits are paid
    • Classic Waiver Option – Here the plan continues even after payment of death benefit. However, all future premiums are waived in this case
  • Further, the policy pays assured add-ons in the first five years of the plan

7. Max Life Shiksha Plus Super:

This is another attractive child insurance plan. This is a ULIP or Unit-Linked Insurance Plan for children crafted to support them with their higher education and wedding expenses in the future.

Key Features of Max Life Shiksha Plus Super

  • The plan allows partial withdrawal of funds in the event of any unforeseen incident
  • It allows the policyholder/insured to choose the tenure of the policy as well as the premium-paying term or PPT
  • The policy offers five varied funds for the investor to invest in with varying degrees of risk
  • The policy supports the family of the insured with added income benefits as well as with the option of future funding of premiums
  • The insured is paid loyalty add-ons together with the maturity benefit

8. Reliance Nippon Life Child Plan:

This child plan offered by Reliance Nippon is a traditional money-back policy that ensures assured benefits to secure your child’s future. Here, the insurer pays 25% of the policy sum insured in the final four years of its tenure.

Key Features of Reliance Nippon Life Child Plan

  • The plan allows assured returns/payments at regular intervals
  • The policyholder can avail of different riders under the plan such as;
    • Total disablement rider
    • Critical illness rider
    • Permanent disablement rider
    • Family income benefit rider, and
    • Accidental death benefit
  • The accumulated benefits under the plan are paid at maturity together with the lump sum maturity benefit

Popular General Insurance Companies India, 2024

To Conclude

To fulfill your child’s needs and to make sure that your child achieves their goals in life, it is necessary for parents to invest in a good child plan. After all, every parent wants their ward’s dreams to come true in terms of their career or in terms of seeing them settled in life. The assured returns earned through the child education plan can help in beating the inflation in the field of education or will aid you in getting your child’s dream wedding.
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FAQs: Top Child Plan for Education and Marriage

Do all child plans offer the premium payments waiver option?

No, this option is not available with all plans but some specific ones.

Tax benefits are available under which sections of the IT Act?

Under Sections - 80C and 10(10D) of the IT Act, the insured can avail of tax benefits.

What documents are needed to buy a child plan?

The interested person requires age and income proof, identity and address proof, as well as the application form.

Is there a limit for beneficiaries under child plans?

There is no such limit as multiple beneficiaries can be there under child plans.

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Aug 29, 2023
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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