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8 min read
Updated on Oct 13, 2023
Raising a child is not easy at all, especially when inflation is on the rise. This is why you need to start investing as soon as you become a parent. Wondering what plans you can invest your money into? The most sought-after option these days is a one time investment plan for child. Wait! Before you go ahead with the one time investment plan for child, you must however first try to understand what it is. Well, in that case, keep reading to know!
As the name suggests, a one-time investment plan for the child means you pay a lump sum amount one-time through a policy term. Along with the life cover, the money keeps growing. As the child grows, the investment plan will keep supporting the child in each of his or her milestones in life.
There are many one time investment plan for child in India and all of them come with benefits. Before we discuss the advantages of one time investment plan for child, let us discuss their significance.
Education is one of the most important things that we can give to our children. And when we are planning a bright future for our child, we need to think about what may happen after 12 years. This is when a one-time child plan helps. Even if the fees charged by educational institutions get higher by then due to inflation, it will not impact your child’s education. The return you get will cover it all.
Also Know: 10 Best Child Insurance Plans in India
During the important stages of your child’s life, you can make partial withdrawals. This way you can be prepared for your child, whether it is their education or marriage.
The one time investment plan for child work like a life cover as well. Even in an unfortunate event, you will have the assurance that your child is protected financially.
As the advantages of a one time investment plan for child are concerned, here are some of them mentioned below:
Name of the plan | Entry age | Maturity age | Sum assured |
Tata AIA Life Insurance Super Achiever | 25-50 years | 70 years | 10XAP |
SBI Life – Smart Scholar | 18-57 years | 65 years | Limited Premium- 10 x AP Single-Premium- 1.25x Premium |
Reliance Child Plan | 21-55 years | 65 years | INR 50,000 |
SUD Life Aashirwaad | 18-50 years | 70 years | INR 4,00,000 |
Shriram Life New Shri Vidya | 18-50 years | 70 years | INR 1,00,000 |
Sahara Ankur Child Plan | 0-13 years | 40 years | For 10 years and below- INR 15 lakh For 11 years and above – INR 24.75 lakh |
Aditya Birla Sun Life Child’s Future Assured Plan | 18-65 years | 75 years | Minimum- INR 4,00,000 |
Aviva Young Scholar Secure | 21-50 years (Parent) 0-12 Years (Child) |
71 years | Death Benefit: Higher of (10 X Annualised Premium) or (105% of paid premiums) |
Aegon Life Rising Star Insurance Plan | 18-48 years (Parent) 1 day-15 years (Child) |
65 years | Maximum Cover: For age less than 45 years – 18 x Annualised Premium For age above 45 years – 10 x Annualised Premium |
Bharti AXA Life Child Advantage Plan | Regular: 18-50 years Limited:18-55 years |
Regular – 71 years Limited – 76 years |
Minimum – INR 25,000 |
Canara HSBC Future Smart Plan | 18-60 years (child must be below 18 years of age) | NA | Below 45 years of age: For 10,15 and 20 years policy term – 10x AP 25 years policy term – 12.5x AP 45 years of age and above – 7x AP |
Aegon Life Rising Star Insurance Plan | 18-48 years (Parent) 1 day-15 years (Child) |
65 years | Maximum Cover: For age less than 45 years – 18 x Annualised Premium For age above 45 years – 10 x Annualised Premium |
Edelweiss Tokio Life Wealth Secure+ | Base: 0-50 years Life Partner: 18-50 years Child: 18-40 years |
Base: 18-70 years Life Partner: 23-55 years Child: 23-55 years |
Minimum: 7 x AP |
Future Generali Assured Education Plan | 21-50 years (Parents) 0-10 years (Child) |
67 years | NA |
Exide Life New Creating Life Insurance Plan | 18-45 years | 60 years | NA |
HDFC Life YoungStar Udaan | Classic: For Aspiration – 30 days to 60 years For Academia and Career – 8 to 60 years Classic Waiver: 18 to 55 years |
Classic: For Aspiration- 18 to 75 years For Academia and Career: 23 to 75 years Classic Waiver: 33 to 75 years |
NA |
IndiaFirst Life Little Champ Plan | 21-45 years | For 7-12 years: 65 years For 13-14 years: 70 years | Minimum – INR 1,50,000 |
IDBI Federal Life Insurance Dream Builder Plan | 21-50 years | 72 years | INR 2,15,000 |
ICICI Prudential SmartKid Solution | 20-54 years | 64 years | 7x AP |
Kotak Headstart Child Assure | 18-60 years | 70 years | Minimum – Entry age < 45 yrs: Higher of (10 X AP) OR (0.5 X Policy Term X AP) Entry age >= 45 yrs: Higher of (7 X AP) OR (0.25 X Policy Term X AP) |
LIC’s New Children’s Money Back Plan | 0-12 years | 25 years | Minimum – INR 1,00,000 |
Max Life Future Genius Education Plan | 21-45 years | 66 years | For 8 pay Variant- INR 3,27,000 (min.) For Limited Pay Variant- INR 2, 12,000 (min.) |
Pramerica Life Rakshak Gold | 18-60 years | 65 years | INR 75,000 |
PNB MetLife Smart Platinum | 7-70 years | NA | NA |
As your child grows and reaches different stages in life, he/she covers several milestones. Some of these milestones are such that you need to plan for them in advance so that you can be financially prepared for them.
Here we are discussing some such important milestones in your child’s life that need consideration:
When the child starts schooling that is regarded as a huge milestone for the tiny tot. This is a time of great excitement not only for the child but for the parents as well. However, this is also a time of great expense that you must consider beforehand. The expenses at this time are mainly related to school admission fees, which is a major expense considering the fact that the inflation in education is touching the sky. Hence, if you are planning to get your child’s admission to a reputed private school, you should keep aside a major chunk of your savings for the purpose. Since school education is the base of a potential future, it has to be good to give your child a good start.
Once your child completes school education, you have a greater responsibility for taking care of his/her higher education needs. Depending on the field of interest of the child, you have to keep aside a particular sum of money to take care of that expense. Due to rising inflation in education, higher studies have become very expensive. Moreover, if the child wants to pursue higher studies in a foreign university, the scope of expense rises further. All these things need consideration to invest and save accordingly.
Lastly, the wedding of the child is another grand occasion that most parents like to save for. This is again an important milestone covered by the child. Depending on their career aspirations and goals, they can decide the right age and time to get married. Or you may decide it for them. Whatever the case, as parents, it is your responsibility to assist them by helping them financially and emotionally during this time when they plan to start a new phase in life.
When it comes to investment plans, be it any investment – child plan, pension plan, or any other plan – the sooner you start, the better it is. To reap better benefits in terms of higher returns and lower premiums, you must start investing from an early age. When you plan to invest in a child plan, start at a time when the child is very young so that by the time the requirement of money comes, the policy has enough to offer. This will also allow you to accrue more in the long run even if you invest a small amount to start with. Hence, the best decision is to start saving early on as soon as possible and to secure your child’s future in a better way.
However, even if you haven’t started any savings plans for your child yet, you may still do it now. It is better to start late than never.
Here are some of the important considerations to be made while you are purchasing a one time investment plan for child.
Read More: What is a Child Insurance Plan and How do Child Plans Work?
To sum it up
A one time investment plan for child can be very helpful for your child. You can rest assured that your child will not have to worry about finances even if you are not around.
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Best investment plans that you can buy for your children can be Canara HSBC Future Smart Plan, Edelweiss Tokyo Life Wealth Secure+ Future Generali Assured Education Plan, etc.
Some of the best one–time investment schemes in India are Tata AIA Life Insurance Super Achiever, Sahara Ankur Child Plan, Bharti AXA Life Child Advantage Plan, Aegon Life Rising Star Insurance Plan, etc.
Yes, there are several one-time investment plans for a child in Post Office such as National Saving Certificate (NSC), Kisan Vikas Patra (KVP), Public Provident Fund (PPF), and Post Office Recurring Deposit Scheme (RD).
For the girl child, the top schemes are Sukanya Samridhi Yojana, Post Office Time Deposit Account, and Post Office Savings Account.
For a boy child in India, you can buy investment schemes such as National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Post Office Monthly Income Scheme (POMIS), and Public Provident Fund (PPF).
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