Plan your child’s education with the best child education plan

Child Education Insurance Plans are insurance policies that cover the protection for your ward and savings needs for your children’s brighter future. One of your most essential goals as a parent is to ensure that your children have a bright future and a comfortable life. 


These plans can help you do so by allowing you to put money aside for your children’s higher education at a prestigious university.

Types of Plans for Children


  1. ULIPS for children


A Unit Linked Life Insurance Plan is a type of insurance that also serves as an investment vehicle. Like a regular child education plan, a portion of your money goes toward protecting your child. The remainder is split between stock and debt investments.


  1. Children’s Savings Accounts


The Child Savings Plan allows policyholders to invest in the plan without risking their money in the market. It’s a multi-faceted plan that includes life insurance, maturity benefits, and tax advantages all in one package.


Characteristics of a Child Plan

Choose the best child education plan, these plans typically include the following features:


  • If you die during the policy term, your children will get a lump-sum amount as the benefit from the plan.
  • Premiums are not required to be paid if the premium is waived. Your youngster will not be responsible for paying premiums because the corporation will do it on your behalf
  • You can withdraw a portion of your funds at any time throughout the term, subject to certain limitations. This covers your child’s many educational milestones.
  • Under Section 80C of the Income Tax Act, the policyholder is eligible for tax benefits.
  • These plans may also have features like Loyalty Addition and Wealth Booster, which can help you expand your money without having to invest additional funds.


Consider these factors when purchasing a child plan:

Here are a few pointers to keep in mind while you shop for a plan for your child:


  1. Get started early


Starting early allows you to profit from the long-term growth of your money. Interest is re-invested to create even larger profits over time. This is one of the benefits of compounding. This offers you a larger sum that you can utilize to help your child realize his or her aspirations.


  1. Keep an eye out for the Premium Waiver Benefit


In the event of an unfortunate incident involving the insured, the insurance company will pay all future premiums for the policy. This ensures that the policy remains in place and that the child’s dreams are realized regardless of what happens.


  1. Locate the Partial Withdrawal Option


Some plans allow you to withdraw up to a set amount from your account during the policy’s term. This tool assists you in remaining financially prepared for your child’s numerous milestones, such as college admissions, weddings, and more. This also assists you in remaining financially prepared in the event of a financial emergency.


  1. Select an investment fund that meets your requirements


Some child plans allow you to choose from a variety of funds – equities, debt, or a combination of both – depending on your risk tolerance. Equity funds are high-risk, high-return investments. Debt funds, on the other hand, provide a steady stream of income. It is critical that the child plan you select includes options that meet your requirements.

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