Best Child Education and Investment Plans in India 2023

Best Investment Plans for Child Education in India, 2023

We only want the best for our children, always. The best clothes, the best food, and also the best education possible. To achieve this dream, we work hard and save hard so that our kids receive the best quality education possible for a brighter future. It only makes sense then to invest in policies so that your child’s future is secured forever. To help you do this, we detail in this post all about the child education investment plan so that you can be rest assured of providing good-quality education to your child for a long time to come.

Child Education Investment Plans: What it Means and How it Works

As the name clearly indicates, a child education investment plan is aimed at encouraging you (the parent) to invest your savings into a plan that works like insurance. Just as insurance comes to your rescue in times of need, so would this plan, helping you keep your savings safe and seal a bright future for your little one.

As you invest in child investment plans, you end up securing your savings for your child’s future, which can then be used to fund his/her education in parts or as a whole. Now let’s understand how these plans actually work.

Say you buy a child plan for their education. You would then be required to pay a premium for the specified duration of the plan (policy term). At the end of the said term, you’d be entitled to receive a certain amount (sum assured) in lump sum from the insurer. This sum is also called the maturity benefit which you can then use for your child’s educational expenses.

Also, it is important to understand here the probability of any unforeseen or unfortunate event (such as the policyholder’s death) during the term of the said child education investment plan. In this case, the insurer would transfer the entire life cover amount to the policyholder’s nominee (most likely the spouse). In addition, any future premium payments that remain to be made for the policy term would also be waived off by the insurer.

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Advantages and Benefits of Child Education Plans

Let’s look at some of the top advantages of child future investment plans in India:

1. Secure your child’s future without worry:

You may want the best education for your child but may not exactly know how to achieve that dream with limited means. Good investment plans for child education help fill that gap.

2. Makes funding for college education possible:

Sometimes financing higher studies for your child, such as college or university, may seem difficult considering the exorbitant fees. With the child education plan, you’re entitled to maturity benefits at the end of the term plan, thus allowing you to take care of these expenses easily.

3. Partial withdrawal possible for medical care of the child:

In case your child falls sick and is in need of hospitalization or prolonged treatment for a condition, you can easily withdraw a partial amount from your child education investment fund and use it to cover these costs.

4. Lets you include riders for additional benefit:

The plan can be enhanced by adding certain add-ons/riders to extend its coverage scope, for example, personal accident insurance rider.

5. Income tax benefits to the policyholder:

The child education plan is eligible for taxation benefits as well under the Income Tax Act, 1961.

3 Best Investment Plans for Child Education

Here are the top 3 investment policies to consider for securing your child’s future education –

1. SBI Life Smart Champ Insurance:

This plan can be obtained for kids between 0 and 13 years and the maturity age of the scheme is 42-70 years. Premiums can be paid annually, half-yearly, quarterly and monthly. Plan covers life insurance as well as cover for death by accident and complete permanent disability by accident for the entire policy term.

2. LIC New Children’s Money Back Plan:

The best one time investment plan for child that allows you to comfortably take care of not only their educational expenses but also those involved in the marriage of the child. This policy provides survival benefits to its holder, meaning in the event of their death, the benefit amount would be given to the policyholder’s nominee responsible for raising the child.

3. HDFC Life Young Star Udaan:

You can avail three options for maturity benefits under this plan in addition to a premium-waiver facility. The minimum eligible age for the child is 1 month and the maximum cover is up to 60 years.

You can find the best investment plan for child education online by making use of the child investment plan calculator. This is a simple tool that allows you to exactly determine the total amount of money required for your child’s education and the corresponding savings you need to make.

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