How Life Insurance Is Useful For Planning For Your Kids' Education?
Updated On Apr 22, 2021
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Life insurance provides life coverage along with benefits which assists you during key phases of your life, education of your children is one of them. The cost of educating a child in India is increasing steadily and planning ahead for higher studies is truly essential.
Child Insurance plans are most suitable when it comes to providing quality education to your children. In child insurance plans, the parents are known as the policyholder and the children are the beneficiary. Following is the of the best child insurance plans offered by various popular insurance companies:
Also Read:- Features of Child Life Insurance Plans
5 Reasons To Purchase A Child Plan
Benefits of Child Insurance Plans
The child insurance plans can be very necessary to an individual when pursuing higher studies, the importance of such plans are as follows:
1. Availability of different variants of child plans
Child plans are usually available in 2 types namely Unit Linked insurance plans and endowment plans. ULIPs for the children invest in the market which maximises wealth while endowment plans offer fixed guaranteed returns.
2. Wide Array of Benefits
The child plans provide enough corpus to pursue higher education, there are some additional benefits such as partial withdrawals in case of any financial urgency, waiver of premium option where the payment of the premium is waived in case of death of the parent and collateral option to provide for child related borrowings.
3. Flexibility in Pay out
The child insurance plans offer 2 different payout options- lump sum and regular instalments. The lump sum payout can be used for many different purposes like marriage, higher studies or any financial requirement. The regular installments can be a source of fee payment and fees for extra curricular activities.
Best Child Insurance Plans in India
|
Child Insurance policy |
Age of Entry |
Maximum Maturity Age |
Minimum Annual Premium |
Sum Assured |
|
Aviva Young Scholar Secure |
Min- 21 years Max- 50 years |
71 years |
INR 50,000 |
10 X annualised premium |
|
Aegon Life Rising Star Insurance Plan |
Min- 18 years Max-48 years |
65 years |
INR 20,000 |
10 X annualised premium |
|
Bajaj Allianz Young Assure |
Min- 18 years Max- 50 years |
60 years |
Based on sum assured |
INR 25,000 |
|
Exide Life Mera Aashirwad |
Min- 21 years Max-50 years |
65 years |
N/A |
INR 3.5 Lakh |
|
HDFC SL Young Star Super Premium |
Min- 18 years Max- 65 years |
75 years |
INR 15,000 |
10 X annualised premium |
|
Kotak Headstart Child Assure |
Min- 18 years Max- 60 years |
70 years |
INR 20,000 |
10 X annualised premium |
|
PNB Metlife College Plan |
Min- 20 years Max- 45 years |
69 years |
INR 18,000 |
INR 2,12,040 |
|
Max Life Shiksha Plus Super Plan |
Min- 21 years Max- 65 years |
66 years |
INR 50,000 |
10 X annualised premium |
You May Also Like to Read:- Things You Must Know About Child Insurance Plans
