5 min read
Updated on Apr 30, 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.
Also Read: Top Saving Schemes and Investment Plans for Girl Child
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.
Also Read: 6 Post Office Saving Schemes, Saving Plans for Boy Child in India 2022
Let’s look at some of the top advantages of child future investment plans in India:
Read More: Best Child Life Insurance Plans in India in 2022
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.
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.
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.
Read More: 7 Best Investment Schemes for College Students in India.
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