As parents, one of the most important investments we can make for our child's future is in their education. It's important to choose the best investment plan for your child so that you can ensure they have access to the best opportunities available. This article will provide you with all the information you need to decide which child investment plan is right for your family. We'll cover topics such as different types of plans, how to choose a plan that fits your needs and budget, and what potential risks and benefits may come with investing in a particular plan. With this article, you'll be able to confidently select the best investment plan for your child's future.
What are Child Investment Plans and Types of Investment Options for Children?
Child investment plans are financial instruments designed to help parents save and invest money for their children's future financial needs. These plans are structured in a way that allows parents to save regularly and build up a corpus of funds that can be used for their child's education, marriage, or other expenses.
Child investment plans are usually offered by insurance companies and mutual fund houses, and there are several types of plans available in India. Some of the popular types of child investment plans include:
- Unit-linked insurance plans (ULIPs): These are insurance-cum-investment plans that offer both life insurance coverage and investment opportunities. A part of the premium paid is invested in equity or debt funds, while the remaining amount is used to provide life insurance coverage.
- Endowment Plans: These traditional insurance plans provide guaranteed returns and life insurance coverage. The premium paid is invested in fixed-income instruments such as bonds and government securities.
- Sukanya Samriddhi Yojana: This is a government-backed savings scheme for the girl child that provides a fixed interest rate and tax benefits. Parents can invest up to Rs. 1.5 lakh per year in this scheme, which can be used for the girl child's education and marriage expenses.
- Education Savings Plans: These plans are designed specifically to help parents save for their child's education expenses. The premium paid is invested in mutual funds, stocks, or bonds, and the returns are tax-free.
- Public Provident Fund (PPF): PPF is a long-term savings scheme that provides guaranteed returns and tax benefits. Parents can open a PPF account in their child’s name and invest up to Rs. 1.5 lakh per year. The funds can be used for the child's education and other needs.
How Do Child Investment Plans Help Your Children?
Child investment plans are designed to help parents save and invest money for their children's future financial needs. Here are some of how child investment plans can help your children:
- Education: Child investment plans can help parents save for their child's education expenses, including tuition fees, books, and other educational expenses. This can help children get a good education and pursue their career goals without worrying about financial constraints.
- Marriage: Child investment plans can also help parents save for their child's wedding expenses, which can be quite substantial in India. By saving early and regularly, parents can ensure that they have enough funds to cover their child's marriage expenses.
- Entrepreneurship: Child investment plans can also help children become entrepreneurs by providing them with funds to start their businesses. This can help children pursue their entrepreneurial dreams without worrying about financial constraints.
- Emergency Funds: Child investment plans can also provide a safety net for children in case of emergencies, such as medical emergencies, job loss, or other unexpected expenses. This can help children avoid financial stress and focus on their personal and professional goals.
Overall, child investment plans can provide a significant financial advantage to children and help them achieve their personal and professional goals. Parents need to start saving early and choose the right investment options to ensure that their children's financial needs are taken care of in the long run.
Benefits of Child Investment Plans in India
Child investment plans in India are financial instruments designed to help parents save and invest money for their child's future needs. Here are some of the benefits of child investment plans in India:
- Provides Financial Security: Child investment plans to help parents secure their child's financial future by providing them with funds for their education, marriage, or other needs.
- Tax Benefits: Some child investment plans in India offer tax benefits to parents. For example, investments made in certain types of mutual funds and insurance policies are eligible for tax deductions under Section 80C of the Income Tax Act.
- Long-Term Savings: Child investment plans to encourage long-term savings, which can help parents accumulate a substantial amount of money over time. This can help them meet their child's future needs without having to worry about financial constraints.
- Flexibility: Child investment plans offer flexibility in terms of investment options and the amount of money that can be invested. Parents can choose the type of plan that suits their financial goals and investment preferences.
- Insurance Coverage: Some child investment plans in India come with an insurance component that provides coverage against the death or disability of the parent. This ensures that the child's financial needs are taken care of even if something happens to the parent.
Top 10 Best Child Investment Plans to Invest in India
There are several child investment plans available in India, and choosing the best one depends on your financial goals, investment preferences, and risk appetite. Here are some popular child investment plans that you can consider investing in India:
- SBI Life Smart Scholar
- Max Life Shiksha Plus Super
- HDFC SL YoungStar Super Premium
- ICICI Prudential SmartKid Solution
- Aditya Birla Sun Life Vision Star Child Plan
- Bajaj Allianz Young Assurance Child Plan
- Bharti AXA Life Child Advantage Plan
- PNB Metlife Smart Child Plan
- TATA AIA Super Achiever Plan
- AEGON Life Rising Star Child Insurance Plan
Premium Table for Child Investment Plans
| Company Name |
Plan Name |
Premium Amount Per Annum |
|
| SBI Life Insurance Company |
SBI Life Smart Scholar |
24000/- |
Buy Now |
| Max Life Insurance Company |
Max Life Shiksha Plus Super |
36000/- |
Buy Now |
| HDFC Life Insurance Company |
HDFC SL YoungStar Super Premium |
24000/- |
Buy Now |
| ICICI Prudential Life Insurance Company |
ICICI Prudential SmartKid Solution |
40000/- |
Buy Now |
| Aditya Birla Sun Life Insurance Company |
Aditya Birla Sun Life Vision Star Child Plan |
20000/- |
Buy Now |
| Bajaj Allianz Life Insurance Company |
Bajaj Allianz Young Assurance Child Plan |
26000/- |
Buy Now |
| Bharti AXA Life Insurance Company |
Bharti AXA Life Child Advantage Plan |
24000/- |
Buy Now |
| PNB Metlife Insurance Company |
PNB Metlife Smart Child Plan |
18000/- |
Buy Now |
| TATA AIA Life Insurance Company |
TATA AIA Super Achiever Plan |
24000/- |
Buy Now |
| AEGON Life Insurance Company |
AEGON Life Rising Star Child Insurance Plan |
20000/- |
Buy Now |
*The above-given premiums are just for illustration purposes only* Compare quotes to get the exact values.
SBI Life Smart Scholar
SBI Life Smart Scholar Plan is a child insurance plan offered by SBI Life Insurance Company. SBI life smart scholar plan is unit linked insurance plan and it is an Individual, Non-participating Life Insurance Product that fulfils your child’s dreams proactively by creating a corpus for a secured financial future through market-linked returns, against all odds. The minimum entry age is 0 years and the maximum age is 17 years.
Benefits:
- Dual Benefits
- Loyalty Additions
- 9 Fund Options
- Tax Benefits
Max Life Shiksha Plus Super
Max Life Shiksha Plus Super is a Unit-Linked Non-Participating Individual Life Insurance Plan that helps you secure a fund for your child’s education and future. Max Life Shiksha Plus Super Plan is a good option for parents who want to secure their child's future education and other needs. However, like all insurance products, it is important to read and understand the terms and conditions of the plan before investing.
Benefits:
- Comprehensive Coverage
- 5 Fund Options
- Loyalty Additions
- Tax Benefits
HDFC SL YoungStar Super Premium
HDFC SL YoungStar Super Premium is a Unit Linked Non-Participating Life Insurance Plan that is designed to accumulate savings for your child's big moment. It is considered a valuable financial protection plan for your child and offers two flexible benefit payment preferences Save Benefit or Save-n-Gain Benefit.
Benefits:
- Financial Protection
- Tax Benefits
- Flexibility
- Death Benefits
ICICI Prudential SmartKid Solution
ICICI Prudential SmartKid Solution is a unit-linked non-participating individual savings life insurance plan. In this policy, the investment risk in the investment portfolio is borne by the Policyholder. This plan offers you a life insurance cover to protect your family even in case of your unfortunate demise along with multiple choices on how to save so that you can accumulate funds towards your desired goals.
Benefits:
- Comprehensive Protection
- Tax Benefits
- Flexibility
- Loyalty Benefits
- Death Benefits
Aditya Birla Sun Life Vision Star Child Plan
Aditya Birla Sun Life Vision Star Child Plan is a non-linked participating life insurance plan which is designed to provide for important milestones so that you can be rest assured that nothing will prevent your dream for your child from turning into reality.
Benefits:
- Reduced Paid-Up Benefits
- Assured Payout
- Rider Benefits
Bajaj Allianz Young Assurance Child Plan
Bajaj Allianz Young Assurance Child Plan is a traditional savings insurance plan that ensures these dreams are fulfilled irrespective of any eventualities.
Benefits:
- Guaranteed Maturity Benefit
- Comprehensive coverage
- 3 Cash Installment Options
- Flexibility
Bharti AXA Life Child Advantage Plan
Bharti AXA Life Child Advantage Plan is a Non-Linked Participating Individual Life Insurance Savings Plan. This plan offers you guaranteed payouts and waives off all future premiums in case of an unfortunate event, thus ensuring your child’s dreams are never compromised.
Benefits:
- Multiple Payout Options
- Premium Waiver Benefits
- Maturity Benefit
PNB Metlife Smart Child Plan
PNB Metlife Smart Child Plan is a unit-linked life insurance plan. This plan offers a complete solution for a child’s higher education, even in the absence of parents.
Benefits:
- Multiple Coverage Options
- Financial Security
- Guaranteed Returns
TATA AIA Super Achiever Plan
Tata AIA Super Achiever is a Child Endowment Plan that provides comprehensive protection benefits even after the parent's death. It is a Unit Linked non-participating plan that gives you and your child much-needed financial security and stability. This plan is best suited for individuals who are looking to combine market-linked returns while securing their child’s educational future.
Benefits:
- Guaranteed Maturity Benefits
- Flexibility
- Partial Withdrawals
- Switching benefits
AEGON Life Rising Star Child Insurance Plan
AEGON Life Rising Star Child Insurance Plan is a unit-linked child insurance plan that helps you make financial provisions for your child's future goals. The minimum entry age for parents is 18 years and the maximum is 48 years. The maturity age is 65 years. The premium payment frequency options are monthly, half-yearly, and yearly.
Benefits:
- Maturity Benefits
- Fund Options
- Additional Units
- Death benefits
Conclusion
When it comes to investing in your child, it is important to choose the right plan. There are many options available, but selecting the best one requires careful consideration of your needs and goals. It is essential to understand how each plan works and what benefits they offer to purchase the best child Investment plan. Comparing quotes will help you make an informed decision that is best for your child’s future.
Compare online quotes now and get the best investment plan for your children.