Which is the Best Child Education Plan?

Child Education Plans are a combination of Investment and Insurance Plans. These plans build up a lump sum amount over some time. The lump-sum is paid out at the time of the Maturity of the Policy and can be utilized for the education and marriage of the child.

In this article, We will list out an ideal Child Education Plan which you as a parent can opt for your child's bright future. 

Features of An Ideal Child Education Plan

Below Mentioned are certain features of an ideal Child Education Plan:

• Availability of Partial Withdrawal

The Liquidity of the plan matters a lot. In Child Education Plans the Policy offers Partial liquidity or Withdrawal. These Withdrawals can be used at crucial points in the child’s life.

• Sum Assured 

The Sum Assured is paid in the event of the unfortunate or untimely demise of the policyholder. The thumb rule states that the sum assured must be more than 10 times the gross earning of the policyholder.

• Taxation Benefits

The Child Education Plans are under the highest exemption of the Tax bracket. It is the E-E-E category and it is the highest grade of the tax benefit by the Indian Tax Laws.

• Complete Financial Protection

These plans offer the lump sum in case of the death of the policyholder or the sole earning member of the family who was liable to pay the premiums. The sum assured can be used immediately to meet emergency expenses.

• Choice of the Policy Term

The Policy Term can be chosen as per your preference. The tenure of the policy should be chosen to take the age of the child and all the upcoming expenses of the child into consideration.

• Waiver of Premium

The Waiver of the Premium Benefit comes into play in case there is a sudden demise of the policyholder and the family is not able to pay the premium. The Insurance Company then pays the remaining premiums on behalf of the policyholder.

• Loan Facility

Once the policy reaches a certain age then the Policy can be used to take out a loan for large expenses.

Top 5 Child Education Plans

Below Mentioned are the list of Top 5 Child Education Plans: 

• HDFC LIFE YoungStar Premium Plan

HDFC Life offers one of the best Child Policy Plans in the market. Comes with two Death Benefit options. A Benefit that only 50% of the Premium will be charged in case of the sudden demise of the policyholder. Availability of four different fund investments. Additional cover for severe diseases. 

• ICICI Smart Life Plan

This is another plan offered by a Banking and Insurance Institution. It provides flexibility to choose between 2 different investment portfolios ICICI Smart Life Plan offers Loyalty incentives and Bonuses. 

• Bajaj Allianz Young Assure Plan

Bajaj Allianz Young Assure plan is a plan that offers you support for future expenses and also helps you fulfil your financial goals. The Benefit from the maturity can be taken in 3 instalments. Additional Bonuses with the Sum Assured at the time of maturity. Availability of Accidental Life Disability gain. Availability of 5 different Riders. 

• LIC New Children's Money Back Plan

Who does not know about the plans offered by LIC? This is one of the great policy plans by LIC that offers security and funds for your child's future. It provides protection for children between the age of 0 to 12. The facility of Accrued bonuses is included in the sum assured. 20% of the amount covered is charged while the child is 18, 20, and 22 years of age. Children's Money Back Plan provides a sum assured of 1 lakh and above. 

• Max Life Future Genius Education Plan

With this plan, you can be free from any kinds of worries related to your child's future goals and dreams. It provides a lifetime cover after the death of the policyholder. Max Life Plan offers 4 money backs which are paid in the last 4 policy years. It provides flexibility to choose premium payment terms and policy terms. 

Conclusion

These are the Best Child Education Plans which are available in the market. The available benefits make sure that your child’s dreams will not be affected because of any financial distress.

Also Read: 

Is a Medical Test required before buying a Child Insurance Plan?

Which is the Best Child Insurance Plan in India 2021?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.