What is 5-year Child Education Plan?

No matter how much your earnings are, having a child education plan is always a good idea to fund your child's educational needs without any compromise. The importance of child education plans is such that a number of life insurance companies now offer such plans. In the section below, let us discuss all the 5-year child education plans and their importance.

What are 5-year Child Education Plans?

A 5-year child education plan is an insurance plan that serves as a roadmap for meeting your child’s educational needs. There are certain things that need to be considered while planning to buy a 5-year child education plan such as the following:

• Start Early: While buying a child insurance plan, you must plan to buy a plan as early as you can. This will help you in creating a corpus for their education so that their aspirations are never left compromised. Moreover, you should also analyse your income and savings to understand the exact amount you need to invest in order to secure your child’s future.
• Compare: Before buying any child education plan, you should first compare the plans available. This will help you in understanding what is included and excluded in the plan that you are buying. Moreover, by comparing the different plans you will also be able to buy the best-suited plan for yourself.
• Analyse Your Risk Appetite: It is very important that you assess your risk appetite before buying any child education plan. For instance, if you have a high-risk appetite then you can easily buy ULIP child plans that have a higher risk factor. On the other hand, if your risk appetite is low, then an endowment child plan is recommended.
• Premium Waiver Benefit: A premium waiver benefit is highly important to consider when you are buying a child insurance plan. This is because a premium waiver benefit is helpful when the insured meets an unfortunate death. In such a case, the insured child will be relieved from paying the premium if the insured passes away. Thus, with a premium waiver benefit, a child can stay protected against such unfortunate events.
• Check the Terms and Conditions: Last but not least, you should also check the terms and conditions of the child education plan you are buying. This is because the features of a child insurance plan vary from insurer to insurer. So, you must check the terms and conditions with your insurer so that there is no confusion in the long run. 

Best 5-year Child Education Plans

Here are some of the 5-year child education plans that you can consider buying:

1. Bajaj Allianz Young Assure

Bajaj Allianz Young Assure is a non-linked, participating, life insurance plan. On buying the Bajaj Allianz Young Assure, you will be able to choose from 4 different investment strategies. With the Bajaj Allianz Young Assure, policyholders have the option to pay premiums at different intervals. 

2. Bharti AXA Life Child Advantage Plan

The Bharti AXA Life Child Advantage Plan provides life insurance as well as maturity benefits. It is a non-linked, participating individual life insurance savings plan that provides the benefit of multiple payouts. Like all other child education plans, the Bharti AXA Life Child Advantage plan also provides tax benefits under section 80C of the Income Tax Act, 1961. Moreover, if the company has profits earned in the given financial year, then this plan also offers bonus benefits. 

3. Aegon Life Rising Star Insurance Plan

The Aegon Life Rising Star Insurance Plan provides security for your child till they attain the age of 25 years. With the Aegon Life Rising Star Insurance Plan, policyholders can also get partial withdrawals that will be helpful in meeting any immediate financial needs of your child. 

Summing Up

Thus, buy the best-suited child insurance plan for your child and secure their future. You can also explore a number of child insurance plans on InsuranceDekho.

Also read: Why is Term Insurance Better Than Whole Life Insurance?