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Sukanya Samriddhi Yojana Or Child Insurance Plan? Which Is A Better Option?

Published On Oct 05, 2021

Parents always want their children to have a financially secure future. Child life insurance policies and the Sukanya Samriddhi Yojana are two excellent investment alternatives that can help you secure your child's financial security in the future. Before you buy one of them, you should know what each of them does and how they differ from one another.

What Are Child Life Insurance Plans?

A child insurance plan provides both insurance and savings, ensuring that your kid has a financially secure future. Because this is a life insurance policy, the parent will be protected. If the life guaranteed goes away during the policy term, the nominee, who can be his or her kid, will get a sum assured. The nominee receives the sum promised payout if the kid is under the age of eighteen. You may ensure that your child has adequate financial assistance to pursue his or her ambitions and objectives with the aid of this sort of insurance coverage. This investment from the child life plan can be used to fund your kid's higher education or marriage expenditures, as well as to encourage their business aspirations.

How Can You Protect Your Child's Future With A Child Insurance Plan?

A child life plan can assist you in financially securing your child's future by providing the following advantages:

  1. Child life insurance promises to give financial stability during your child's formative years.
  2. These plans provide a variety of fund alternatives to assist you to earn large returns that will allow you to give enough financial resources for your child when the time comes.
  3. Child life insurance protects your child's future by giving a death benefit in the event of your untimely death.
  4. Child life plans also encourage disciplined long-term savings, which may undoubtedly assist you in building an investment portfolio.

Sukanya Samriddhi Yojana: What Is It?

Sukanya Samriddhi Yojana is a government investment plan that is part of the Beti Bachao, Beti Padhao Yojana and is designed to give parents of female children an account for their girl child's future expenditures. Anyone who is the parent of a girl kid under the age of ten can open it. The Sukanya Samriddhi Account is valid for 21 years or until the girl child turns 18 and marries. From April 2020 onwards, this program will offer a 7.6% yearly cumulative interest rate.

Sukanya Samriddhi Yojana: How Does It Help You Protect Your Child's Future?

Sukanya Samriddhi Yojana provides the following benefits to assist you financially guarantee your child's future:

  1. Sukanya Samriddhi Yojana is a government program that allows parents of a female child to create an account for her future expenditures.
  2. With just INR 250, you may create a Sukanya Samriddhi Yojana account.
  3. This plan assists you in putting money aside for your daughter's schooling.
  4. The interest rate on Sukanya Samriddhi Yojana accounts opened after October 2018 is 8.6%.
  5. Partial withdrawals are permitted under this plan in exceptional situations, such as the unexpected loss of a parent.


Both child plans and the Sukanya Samriddhi Yojana are excellent investments for your child's future financial security. Sukanya Samriddhi Yojana is not a life insurance plan, but rather an account that will give high returns to ensure your female kid has enough financial resources for her future financial needs.

Also read: 

Why Is It Important To Invest In Child Life Insurance Plan?

Is It Safe To Buy Child Life Insurance Plans Online?    

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.

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