A Detailed Comparison Of Child Education Plans In India
Every parent wants their children to lead a healthy and financially settled life. But untoward incidents can hit anytime without any notice. So, it’s your responsibility to equip your child with the necessary tools that will help him/her combat all these situations. A child education plan not only promises your child’s future but also offers you financial assistance.
If you are not there when the best child education plan matures, you will be leaving assets that will help your child to accomplish his/her dreams. With the best child education plan in India, you will offer financial assistance and protection to your child at various stages of life.
Child Education Plan India
Child education plans are investment cum insurance plans that secure your child’s future by creating funds over a period. The best child education insurance plan in India offers a lump sum amount to your child on its maturity. This amount will help your child to repay his college fees and other educational expenses. But purchase a child education savings plan only after analyzing your financial planning and requirements of funds at various stages of your child’s life.
Before you purchase a child education plan in India, we suggest you use a child education plan calculator. With the help of a child education plan calculator, you can calculate how much amount you need to invest so that your child will get the best education at every stage of life.
Importance of Child Education Plans
The best child education plan in India offers both investment and insurance options and thus, safeguards your child’s life utterly. If you have a family history of critical illnesses, then you must opt for a child education plan so that you can accumulate an adequate amount once your child reaches a school or a college.
Compare Best Child Plans in India
Let’s take a look at some of the factors that you need to take care of if you want to compare child plans.
Age: The entry and maturity age are the two prime factors that a person must check while comparing various child plans. Different plans offer different criteria for these two factors. The range of entry age is between 30 days to 8 years. After analyzing your requirements, you must purchase the best plan. Always think when you need financial assistance to support your child’s education or when your child will go for higher studies or colleges. Choose a plan that matures when your child is 15-25 years. It is recommended to purchase a child education savings plan at an early age. This will assure that your child will get the best education at the time of requirement.
Premiums: Different plans offer different premium payment modes to customers. You are free to choose any of the modes as per your requirements. At the beginning of the policy, you may choose to pay a lump sum amount or you can go for regular mode. Other payment mode options are monthly, quarterly, half-yearly, or yearly. Depending on your sum assured, your premium amount varies.
Maturity Benefits: Be it the best education plan for a girl child or a boy child, it offers maturity benefits along with a life cover. Most plans offer maturity benefits in a lump sum amount, but some plans also divide the maturity benefits into installments and are paid to the child at various stages of life.
Death Benefits: The best child education insurance plan in India also offers death benefits. This means if the insured policyholder dies in an unfortunate incident during the policy tenure, the beneficiary will receive the death benefits.
Types of Child Plans: The markets are crammed with various types of child education savings plans like endowment plans, ULIPs, and many more. If you want to invest in a plan for more than 10 years, then a ULIP plan could be your best choice.
Riders: Most child insurance plans come up with riders like critical illness, accidental death, and premium waiver riders. To enjoy these riders, you need to pay an additional premium amount.
Partial Withdrawals: Always choose a child plan that permits you partial withdrawals after a certain period. Many child education plans offer you to withdraw your accumulated funds before the date of maturity.
Some popular Child Plans in India
HDFC Life Young star Udaan Plan
This is the best plan if you want to secure your child’s financial future. Some of its features are:
1. This plan gives you three options according to the financial goal of your child. The options are:
- Aspiration option: Here, you will get a lump sum amount at the time of maturity.
- Academia option: This is the most suitable child education insurance plan. Under this plan, you will get the payouts in the last 5 years before maturity.
- Career option: This option offers an additional advantage to start your child’s career
2. Pay premiums for a limited period and enjoy coverage throughout the policy term
3. You can take loans under this policy plan
ICICI Pru Smart Kid Solution
This ULIP plan inspires parents to save and shape their child’s future. Some of its features are:
- The minimum entry age for parents is 20 years and the maximum age is 54 years
- You can make an investment strategy as per your child’s requirements
- This plan offers comprehensive protection to your child. This means your child is secured even in your absence
- After the completion of 6 years, you can withdraw the money
Bajaj Allianz Young Assure Plan
This conventional savings plan encourages your child to accomplish his/her dreams. Some features of the plan are:
- This plan provides financial security along with the benefit of life cover
- To strengthen coverage, this plan offers rider benefits coverage
- Multiple premium payment and policy term options
- Offers a discount for a higher sum assured
- At the time of maturity, the policyholder gets a vested bonus along with a terminal bonus
Max Life Shiksha Plus Super plan
If you want to save funds for your children’s future education and other needs, then opt for this plan. Some of its features are:
- This plan offers coverage for your child’s education
- The range of policy terms is between 15-25 years
- This plan comes with 6 fund option
- This plan gives maturity benefits at the end of the policy term
- In the case of financial urgency, you can withdraw partially
Education is a necessity for your child to build a successful career. You should be prepared financially so that you don’t need to compromise with your child’s education. Before purchasing a child education plan, always compare child plans and choose the most suitable one that resonates with all requirements of your child. How to compare a child education plan with other plans? We already disclosed the factors required to compare such plans. A detailed comparison will help you pick the best one for your child.