Top Child Education Plans in India | Check Details Below

Children’s education Plans offer a comprehensive way to protect your child’s future through a combination of investment and insurance. Parents can save for higher education of their children and financial stability in case of the sudden death of a parent. These plans allow you to save enough money to secure your child’s future.

What Are Child Education Plans?

Children’s education plans help parents safeguard their child’s future financially and structurally. With these plans, you pay regular installments over a set period. Once you grow up, you earn money once. These programs help build a fund for a child’s education and also provide life insurance.

If the parent (policyholder) dies, the child policy provides three times the benefit of the enrollee. The family receives a life insurance policy, the insurance company pays the balance, and the child receives the monthly premium. This helps with educational expenses such as tuition fees, books, and uniforms for the child. Children’s education programs also offer flexible payment options at key times in your child’s life.

List of Best Child Plans in India

Plans	Entry Age	Maximum Maturity Age	Minimum Investment Amount (annually)	Minimum Sum Assured
TATA AIA Fortune Pro- WOP	18-59	75	Rs 12,000/-	–
TATA AIA Fortune Pro	18-59	40	Rs 12,000/-	For Single Pay – 1.25 times the Single Premium
				For Regular / Limited Pay – 7 * AP
Max Life Online Savings Plan- Child Plan	18-54	85	Rs 12,000/-	The minimum Sum Assured is Rs. 1,20,000
Bajaj Allianz Smart Wealth Goal- Child Wealth	18-60	85	Rs 48,000/-	10 times Annualized Premium
ICICI IPru Smart Kid Plan	18-65	64	Rs 25,000/-	Minimum Sum Assured (Single Pay) -1.25 x Single Premium
				Minimum Sum Assured (Regular Pay)- 7 x Annual Premium
TATA AIA Capital Guarantee Solution	18-50	75	Rs. 51,000/-	Minimum Sum Assured (Single Pay) -1.25 x Single Premium
				Minimum Sum Assured (Regular Pay)- Higher of (10AP OR (0.5Policy Term*AP)
Max Life Capital Guarantee Solution	18-50	85	Rs. 37,200	The Minimum Sum Assured is Rs. 1,20,000
BAJAJ Allianz Capital Guarantee Solution	18-55	65	Rs. 20,000	The Minimum Sum Assured is Rs. 30,000
Aditya Birla Capital Guarantee Solution	0-58	85	Rs. 38,400	Minimum Sum Assured (Single Pay)- Rs.100,000
				Minimum Sum Assured (5 Pay)- Rs.20,000
				Minimum Sum Assured (6-12 Pay)- Rs.30,000
HDFC Life Capital Guarantee Solution	18-50	85	Rs. 12,000	1.25 times the Single Premium
PNB MetLife Capital Guarantee Solution	18-60	80	Rs. 51,000	Minimum Sum Assured (Single Pay)- Rs. 100,000
				Minimum Sum Assured (5 Pay): 12,000
				Minimum Sum Assured (Regular Pay & 10 Pay): 12,000
Kotak Life Capital Guarantee Solution	18-50	99	Rs. 21,000	10 times Annualized Premium

Why Buy a Child Education Plan?

In the event of the untimely death of the insured, child policies provide three benefits for comprehensive protection:

• Life cover is provided to the enrollees/family members to cover immediate expenses.
• The cost of future market-linked children’s policies is paid by the insurer. Once the child is old enough, that money is given to him.
• The child receives a monthly income to cover regular expenses.

Key Features of a Child Education Plan

One-time consolidation of interest:

The policy provides a one-time benefit to your children upon your unfortunate death during the policy period. This ensures that your child’s education funds will not go to waste.

Partial withdrawal:

Children’s educational programs provide flexibility in withdrawal. You can withdraw at any time after five years towards educational milestones.

Waiver of fees:

In the event of your untimely death, the insurance company will take care of the balance, ensuring that the policy remains in force.

Tax benefits:

You get tax benefits under Sections 80C and 10 (10D) of the Income Tax Act. The plan is tax deductible.

The cover of life:

The life insurance component ensures that if something unexpected happens during the policy period, a fixed amount will be paid to your child.

Benefits of Investing in a Child Education Plan

• Future Security: Be sure that your child’s education needs can be met even if you are not there.
• Disciplined Savings Help your child save regularly to fund your child’s education.
• Financial Insurance Guarantees immediate payment and a reduction in the future cost of premiums if there is the death of a member.
• Flexibility: Choose flexible payout options during crucial educational milestones.
• Tax benefits Get tax benefits and benefit your child secure their educational future.
• high returns earn higher rates of return when compared with traditional savings. It also offers two benefits of investing and insurance.
• Customized Solutions Select a plan which is compatible with your financial abilities and your child’s education needs.
• inflation Shield: ready for increasing costs for education as a result of inflation.

What are The Tax Benefits of Child Education Plans?

Investing in children’s educational programs not only secures your child’s future but also offers significant tax benefits under the Income Tax Act, of 1961. Here you can check the tax benefits in more detail:

Section 80c

The premium paid for your policy:
1. Tax paid to the Children’s Education Scheme is tax deductible under Section 80C.
2. You can claim a discount of up to Rs. The premium paid for the policy is Rs 1.5 lakh per financial year.

Section 10 (10d).

Tax-free gains on completion:

1. Maturity benefits received from the Child Education Scheme are exempt from tax under Section 10(10D).
2. This discount works as an annual premium for the scheme above Rs. 2.5 lakhs is available.
3. Benefits received when due at the end of the term or upon the death of the insured are tax-free.

By taking advantage of these tax benefits, you can maximize your return on investment, allowing you to save more for your child’s education.

Types of Child Education Plans in India

1. Children’s Group Linked Life Insurance Plans (ULIPs).
   ULIPs allow you to build up the funds you need to meet your child’s educational objectives.
   These policies are linked to the market, allowing for high returns, albeit with high risk.
2. Capital guarantee solution
   Capital guarantee solutions protect your initial capital investment, despite market fluctuations or economic uncertainty.
   These programs are ideal for risk-averse parents looking for safe and reliable investments.
3. Guaranteed Return Policy (Traditional Policy).
   Guaranteed Return Child Plans offer fixed benefits throughout the plan period.
   These policies offer a guaranteed return on your investment along with your child’s future insurance, increasing confidence in the policy.

How Much Should You Invest in Child Education Plans?

How much you invest in a children’s program depends on a variety of factors, including your financial situation, goals, and educational expenses. It is recommended that investments begin as early as possible to take advantage of the increased growth in children’s education programs. The general rule of thumb is to aim to save at least 20% of the estimated cost of education. However, this percentage can vary depending on your income, other financial obligations, and how much time is left before your child starts his or her education.

How to Choose the Right Child Education Plan?

If you are unsure of which child you are planning to purchase, consider the following key points before making a purchase decision:

1. Require triple benefits: The Child Plan offers triple benefits in terms of comprehensive coverage, including lifetime costs, waivers, and the child’s monthly income
2. Look for partial elimination options: Make sure the plan allows for partial repair financially for different stages of your child’s life.
3. Reputation of insurers: Choose financially stable companies with good coverage.
4. Flexible plans: Look for plans that offer flexibility in premium payment options, policy terms, and coverage.
5. Choosing Savings: Market-oriented children’s education programs should provide options for choosing among savings based on your risk appetite.

Child Education Plan vs. Sukanya Samriddhi Yojana vs. Public Provident Fund Comparision

Feature	Child Education Plan	Sukanya Samriddhi Yojana	Public Provident Fund
Unique Triple Benefit	Yes	No	No
Future premiums paid by an insurer	Yes	No	No
Monthly income to fund child’s education on parent’s death	Yes	No	No
Lump sum payout to family on parent’s death	Yes	Yes	Yes
Returns	12%-15%	8.2%	7.1%
Availability	Girl Child or Boy Child	Girl child only	Girl Child or Boy Child
Max Entry Age	Up to 18 years	Up to 10 years	No Age Limit
Flexibility	Invested Amount can be Withdrawn after 5 years	21 years	15 years
Conditions for Premature Closure	Anytime after 5 years	Extreme Compassionate Grounds	Serious Ailments or for education
Penalty on Premature Closure	No Penalty after 5 years	Returns reduced to Post Office Savings rate	1% reduction in interest rate
Max deposit amount in a year	No Limit	1.5 Lacs	1.5 Lacs
Documentation	Low	High	Low

Child Education Plan Claim Process in India

The claim process for child plans involves the following steps:

1. Informing the Insurance Company: Immediately inform the insurance company about the incident. Contact the insurer’s customer service or claims department and provide the necessary details. You can also reach out to Policybazaar’s dedicated claims settlement team for smooth processing.
2. Documentation: Provide the following documents:
   • Claim form: Fill out with accurate and complete information.
   • Policy document: Provide a copy of the child’s insurance policy.
   • Medical records: Submit medical reports, bills, prescriptions, and any other relevant documents if the claim is related to medical expenses.
   • Proof of identity: Submit a valid proof of identity, such as an Aadhaar card, PAN card, or passport.
   • Incident-related documents: Provide relevant documents, such as a police report or FIR, if the claim is due to an accident or loss.
3. Submitting the Documents: Submit all required documents to the insurance company within the specified timeframe. It is advisable to keep copies of all documents for your records.
4. Verification and Assessment: The insurance company will review the submitted documents and assess the claim. They may conduct their investigations or request additional information if needed.
5. Claim Settlement: Once the claim is verified and approved, the insurance company will process the settlement. The settlement amount will depend on the terms and conditions of the child plan. The insurer will pay the policyholder or the nominee, as applicable.

By understanding and utilizing these tax benefits and features, you can make an informed decision to secure your child’s educational future with a child education plan.

Conclusion:

Choosing the right child education program requires careful consideration of a variety of factors. By investing in early childhood education programs, you can protect your child’s future, ensure discipline savings, provide financial security, and enjoy tax benefits.

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  Top Child Education Plans in India | Check Details Below

Disclaimer: All information provided on this page has been written by our team for educational purposes only. We do not have any partnerships or affiliations with any companies mentioned. If you find any mistakes or errors, let us know in the comments section. Thank You.