Child Education Plans

Child Education Plans

 These plans encourage long-term savings and investment to accumulate funds for a child’s higher education, which can be costly. Child education plans offer flexibility in terms of investment options, contribution amounts, and withdrawal options to meet varying financial goals and risk appetites.

Contributions towards child education plans are eligible for tax benefits under Section 80C of the Income Tax Act, providing tax-saving benefits to parents.

Some plans also include an insurance component, providing financial protection to the child in case of the parent’s demise or disability during the policy term. The accumulated funds can be used to cover tuition fees, books, accommodation, travel expenses, and other educational costs, ensuring the child’s academic aspirations are supported financially

Child education plans are financial products designed to help parents save for their child’s future educational needs. These plans combine savings and insurance benefits to ensure that the child’s education expenses are met even in the unfortunate event of the parent’s demise. With the rising cost of education, having a well-structured child education plan can provide financial security and peace of mind.

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What Are Child Education Plans?

Child education plans are especially designed to help parents financially secure their child’s future in a disciplined way. In a child education plan, you pay a premium (monthly, half-yearly, yearly, or single-pay) for a specific period. At the end of the policy term, you get a lump-sum amount as the maturity benefit. While you create a corpus for the child’s education, the insurance element provides you with life cover.

In case of the unfortunate death of a parent (the policyholder), a child plan will support the nominee with triple benefits. While the life cover amount is paid to the family, the remaining premiums of the plan are paid by the insurer. Also, the child gets the benefit of a monthly payout to meet his/her expenses. That means, even in your absence, the child can use this amount to cover educational costs such as tuition fees, books, uniforms, etc. Besides, child education plans offer flexible payout options at important milestones of your child.

best child education plans available in the market

LIC Jeevan Tarun

Offers a combination of annual survival benefits and maturity benefits to cover education expenses. Provides life insurance cover throughout the policy term. Participates in the corporation’s profit and offers bonuses.

SBI Life – Smart Scholar

  • Fund value at maturity
  •  Loyalty additions to enhance fund value.

HDFC Life YoungStar Udaan

  • Comprehensive coverage including death and maturity benefits.
  • Bonuses to boost corpus.

ICICI Pru Smart Kid Solution

  • Market-linked returns.
  • Partial withdrawals for emergencies.

 

Bajaj Allianz Young Assure

  • Survival benefits in the form of cash bonuses.
  • Maturity benefit to cover higher education expenses.

Max Life Shiksha Plus Super

  • Fund value at maturity.
  • Additional protection through optional riders.